1. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar Overall results of “UTK” PJSC activity for the year 2002 and financial and economic objectives for the year 2003

2. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 2 Integrated indicator of telecommunications development US dollars Number of basic telephone sets per 100 inhabitants Average telephone density in SFD – 19,08 Average telephone density in Russia – 23

3. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar Mission of the Company To provide Southern regions of Russia with full range of integrated telecom services of high quality that will enrich living standards of the work collective and the whole society. № 3

4. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar Area - 51962 thousand square km, or 3.5% of the territory of the Russian Federation Population – 18?4 mln people, or 14% of the population of the Russian Federation Density of population – 36.4 people per 1 square km № 4 Volgograd Astrakhan Rostov-on-Don Elista Stavropol Krasnodar Maikop Cherkessk Nalchik Vladikavkaz

5. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar Place of the consolidated Company among telecom mega-regional entities of Russia, nine months of 2002 №5

6. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar Entrance shares of the merged companies, % № 6 17% Volgograd 5% Astrakhan 21,8% Rostov-on-Don 0,7% Elista 8,5% Stavropol 39% Krasnodar 1,1% Maikop 0,5% Cherkessk 2,1% Nalchik 4,2% Vladikavkaz Approved by General Shareholders’ Meetings - average 98.51%

7. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar Charter Capital Size-1 billion297million779thousand384.66 rubles Common registered book-entry shares 2 billion 960mln 512 ths 964shares Preferred registered book-entry shares 972 mln 151 ths 838 shares Par value 0.33 ruble № 7

8. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 8 Structure of the Company’s capital

9. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 9 Dynamics of RTS indices and prices of “UTK” PJSC shares for the year 2002 Share price, USD RTS Index Common share price (KUBN), USD Preferred share price (KUBN), USD Source: RTS 20.01.2003

10. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 10 Market capitalization of the mega-regional telecom entities Million USD Market capitalization after the registration of the Reports on the results of the shares’ issuances by FCSM of Russia As at 31.10.2002 As at 31.12.2002 As at 20.01.2003

11. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 11 “UTK” PJSC shares are used when calculating official stock market indices AK&M Composite Index AK&M Branch Index RTS Index S&P/RUX Index S&P/RUX - Telecom

12. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 12 Issuance of ADR of Level 1 Capitalization, ths USD ADR price, USD Capitalization, ths USD ADR price, USD

13. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 13 Resolution of the Board of Directors of 11 March 2002 on changing the Company’s Registrar - OJSC “Registrator-Svyaz”, Moscow License № 01147, issued by FCSM of Russia Registrar of the Company

14. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 14 Actions in connection with reorganization Formation of organizational structure Optimization of financial flows Analysis of the existing telecommunication networks Audit of software complexes and information systems

15. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar Project of “UTK” PJSC organizational structure General Directorate Head – Director General “Kubanelectrosvyaz” “Rostovelectrosvyaz” “Electrosvyaz” Stavropol Territory “Electrosvyaz of Adygeia Republic” “Karachaevo-Cherkesskelectrosvyaz” “Sevosetinelectrosvyaz” “Svyazinform” Astrakhan Region “Volgogradelectrosvyaz” “Electrosvyaz” Kalmykia Republic “KabBalktelecom” head – head of communication center Branches – head – Deputy Director General – Director of a branch Departments (sections) head – head of department > 3000 Expected revenues for 2002, mln rubles 2000 - 3000 1000 - 2000 500 - 1000 <500 CNT YugtaksofonUPC № 15

16. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 16 “Electrosvyaz of Adygeia Republic” “Svyazinform” Astrakhan Region “Volgogradelectrosvyaz” “KabBalktelecom” “Electrosvyaz” Kalmykia Republic “Karachaevo-Cherkesskelectrosvyaz” “Sevosetinelectrosvyaz” “Electrosvyaz” Stavropol Territory Specialized secondary Higher “Kubanelectrosvyaz” (“UTK” PJSC) 88,2% 77,6% “Rostovelectrosvyaz” Provision with specialists with higher and specialized secondary education 69.9% 80.9% “Svyazinvest” OJSC Average “UTK” PJSC Average

17. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 17 Personnel Policy of the Company Effective usage of the existing intellectual potential of the Company Realization of the principle of professional knowledge conformity with position held Carrying out the unified policy on recruiting, training and professional development of personnel

18. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 18 Work of Board of Directors and Management Board of the Company Main issues under consideration : Financial and economic activity Reorganization of the Company Development of the telephone networks of the regions Execution of the investment program Introduction of new technologies and services Development and realization of the marketing policy

19. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 19 Revenues, mln rubles “Electrosvyaz of Adygeia Republic” “Svyazinform” Astrakhan Region “Volgogradelectrosvyaz” “Kabbalktelecom” “Electrosvyaz” Kalmykia Republic “Karachaevo-Cherkesskelectrosvyaz” “Rostovelectrosvyaz” “Sevosetinelectrosvyaz” “Electrosvyaz” Stavropol Territory “Kubanelectrosvyaz” (“UTK” PJSC) budget 2003 expected 2002 “UTK” PJSC TOTAL +26,9%

20. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 20 Revenues, mln rubles year Mln RUR

21. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 21 Share of revenues from new services in total revenues from telecom services, % year

22. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 22 Revenues from new services, mln RUR “Electrosvyaz of Adygeia Republic” “Svyazinform” Astrakhan Region “Volgogradelectrosvyaz” “Kabbalktelecom” “Electrosvyaz” Kalmykia Republic “Karachaevo-Cherkesskelectrosvyaz” “Sevosetinelectrosvyaz” “Electrosvyaz” Stavropol Territory budget 2003 Expected 2002 “Kubanelectrosvyaz” (“UTK” PJSC ) “Rostovelectrosvyaz” “UTK” PJSC TOTAL +54.7%

23. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 23 Internet Video telephony ISDN IP - telephony Multi service network

24. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 24 Digitization, %

25. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 25 Pre-paid call Universal mail box (Fax mail, Voice mail) Televoting Telecom service payments by a pre-paid card Intelligent services

26. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar Volgograd Astrakhan Elista Makhachkala Stavropol Vladikavkaz Nalchik Cherkessk Maikop Rostov-on-Don Krasnodar Tasks on formation of common information area of “UTK” PJSC Creation of corporate data network together with JSC “Rostelecom” and provision of sufficient level of service for giving access to the network in the Southern Federal District Full coverage of the regions Realization of the federal target program “Electronic Russia” Unification of the tasks and principles of formation of the common information area based on corporate data network of the regional telecom operators № 26 01.01.2004 01.10.2003 01.08.2003 01.09.2003 01.06.2003 01.10.2003 01.06.2003

27. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 27 Telephone density, number of basic telephone sets per 100 inhabitants

28. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 28 Installation of telephones for invalids and participants of the Great Patriotic War Installation of telephone sets for all those invalids of GPW who submitted their requests before 1 January 2003, till 01/01/04

29. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 29 Development strategy of the telecom network of the District Local Center STM-64 Central Office/POP STM-1/4 GbE Metropolis ADM Local Center STM-16 ADM 16/1 Compact GbE Metropolis ADM AM 1 Plus STM-1/4 AM 1 Plus Metropolis ADM Lucent Springtide 7000 Foundry Big/NetIron Cisco Router GbE E/FE

30. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 30 Capital Investments, mln RUR “Electrosvyaz of Adygeia Republic” “Svyazinform” Astrakhan Region “Volgogradelectrosvyaz” “Kabbalktelecom” “Electrosvyaz” Kalmykia Republic “Karachaevo-Cherkesskelectrosvyaz” “Sevosetinelectrosvyaz” “Electrosvyaz” Stavropol Territory Budget 2003 expected 2002 +58% “Kubanelectrosvyaz” (“UTK” PJSC ) “Rostovelectrosvyaz” “UTK” PJSC TOTAL

31. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 31 Numbers put into operation, thousand №№ “Electrosvyaz of Adygeia Republic” “Svyazinform” Astrakhan Region “Volgogradelectrosvyaz” “Kabbalktelecom” “Electrosvyaz” Kalmykia Republic “Karachaevo-Cherkesskelectrosvyaz” “Sevosetinelectrosvyaz” “Electrosvyaz” Stavropol Territory Budget 2003 Expected 2002 +36.3% “Kubanelectrosvyaz” (“UTK” PJSC ) “Rostovelectrosvyaz” “UTK” PJSC TOTAL

32. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 32 Growth of the number of basic telephone sets “Electrosvyaz of Adygeia Republic” “Svyazinform” Astrakhan Region “Volgogradelectrosvyaz” “Kabbalktelecom” “Electrosvyaz” Kalmykia Republic “Karachaevo-Cherkesskelectrosvyaz” “Sevosetinelectrosvyaz” “Electrosvyaz” Stavropol Territory Budget 2003 Expected 2002 +43.4% “Kubanelectrosvyaz” (“UTK” PJSC ) “Rostovelectrosvyaz” “UTK” PJSC TOTAL

33. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 33 Average number of lines “Electrosvyaz of Adygeia Republic” “Svyazinform” Astrakhan Region “Volgogradelectrosvyaz” “Kabbalktelecom” “Electrosvyaz” Kalmykia Republic “Karachaevo-Cherkesskelectrosvyaz” “Sevosetinelectrosvyaz” “Electrosvyaz” Stavropol Territory Budget 2003 Expected 2002 “Kubanelectrosvyaz” (“UTK” PJSC ) “UTK” PJSC TOTAL “Rostovelectrosvyaz” +6 % Ths, lines

34. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 34 year Average number of lines, ths lines

35. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 35 Structure of capital investments, %

36. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 36 Investment Program, mln RUR year

37. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 37 Operating profit, mln RUR “Electrosvyaz of Adygeia Republic” “Svyazinform” Astrakhan Region “Volgogradelectrosvyaz” “Kabbalktelecom” “Electrosvyaz” Kalmykia Republic “Karachaevo-Cherkesskelectrosvyaz” “Sevosetinelectrosvyaz” “Electrosvyaz” Stavropol Territory +46,3%+46,3% Budget 2003 Expected 2002 “Kubanelectrosvyaz” (“UTK” PJSC ) “UTK” PJSC TOTAL “Rostovelectrosvyaz”

38. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 38 Order of tax payments after reorganization Stavropol Territory Rostov Region General Directorate of “UTK” PJSC Krasnodar Regional branch Rostov-on Don Regional branch Stavropol Regional branch Tax agency of the Ministry of Tax Revenue in Leninski district of Rostov-on-Don Tax agency № 2 of the Ministry of Tax Revenue in Turkmenski region Regional Inspection of the Ministry of Tax Revenue Before reorganization After reorganization

39. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 39 Factors of efficiency Proceeds per one line, rubles 19,7% Tariff income per one line, rubles 21,2% Proceeds per one employee, rubles 30,5% Operating profit per one employee, rubles 50,4%

40. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 40 Number of lines per one employee

41. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 41 REPORT OF THE AUDITOR. General Shareholders’ Meeting approved CJSC «Ernst&Young Vneshaudit» the Auditor of PJSC “UTK” Basic company Regional branch 31.12.2002 31.10. 2002 01.01.2002 OPINION OF THE AUDITOR. General Shareholders’ meeting approved CJSC “Unicom MS-Consulting Group” the Auditor of a Regional branch Business accounting and accounting reports should be performed in conformity with unified rules of the consolidated company determined by uniform accounting policy

42. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 42 Main tasks for the year 2003 Financial policy Personnel policy Tariff policy Investment policy Technical policy

43. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 43 Main tasks for the year 2003 Engineering Department Billing Accounts Department Economic Department Analysis, forecasting Intranet Reports, Documents Circulation Common Data base ERP II Universal client software Priority guideline when creating the common information area

44. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 44 Main tasks for the year 2003 Unification of the types of telecom equipment applied Number of the types of telecom equipment used

45. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 45 Main tasks for the year 2003 Elaboration of the package of documents regulating economic and financial activity of the Company Technical section Financial section Legal section Corporate management

46. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 46 Main tasks for the year 2003 Subscriber fee as of 15.11.2002 of the regional branches of “UTK” PJSC Monthly subscriber fees of the companies of the SFD differ considerably, Uniform tariff level is introduced for residents and organizations Residents - from 95 to 110 rubles Organizations- from 120 to 140 rubles Monthly subscriber fee (urban TN), rubles

47. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 47 Main tasks for the year 2003 Adygeia Republic Astrakhan Region Volgograd Region Kabardino- Balkaria Republic Karachaevo- Cherkessia Republic Republic Kalmykia Krasnodar Territory Rostov Region Stavropol TerritoryNorthern Ossetia Republic Agreement on general principles of relationship between “UTK” PJSC and Administrations of the subjects of the Russian Federation Before1 March 2003

48. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 48 Main tasks for the year 2003 Systematization of the processes of budgeting and investment planning Creation of the effective mechanism of financial relations in the Company (switch to treasury system of budget execution) Insurance of communication lines and telephone exchanges Enhancement of debt finance efficiency

49. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar Accounts receivable for telecom services for of 2002 with respect to average monthly income Million rubles 160,4% - “UTK” PJSC % № 49 Main tasks for the year 2003

50. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 50 Main tasks for the year 2003 Introduction of the system of time-based (per-minute) billing of local telephone calls

51. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 51 Main tasks for the year 2003 Undoubted execution of the plans of telecommunications development in the Southern Federal District шт.

52. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 52 Main tasks for the year 2003 Federal program «Electronic Russia» Decree of the Government of the Russian Federation №65 of 28.01.02 Provides for implementation of 69 actions Inter-departmental commission was set up: Chairman – the Minister for Economic Development of the Russian Federation, Vice-Chairman – the Minister for Telecommunications of the Russian Federation

53. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 53 Main tasks for the year 2003 Certification of Internet services, e-mail, web-hosting Formation of sector security bodies belonging to the Ministry for Telecommunications of the Russian Federation

54. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar № 54 High potential of “UTK” PJSC makes it possible to carry out the national program on development of modern telecommunications in the Southern Federal District

55. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar Thank you for your time

56. “UTK” PJSC Extraordinary General Shareholders’ Meeting 21 January 2003, Krasnodar Results of “UTK” PJSC activity for the year 2002 and Economic and financial tasks for the year 2003