1. North-West Telecom Key Business Objectives April 2005

2. 10 regional branches 4, 5 mln. subscribers 34 ths employees Revenue 2004 530 MUSD Revenue 2005F 680 MUSD NWT today NWFD is a large market with significant investment potential NWFD has the 3rd largest per capita income level among Russian regions NWT is characterized by the highest telephone density (30 telephone sets/100 inhabitants) in Russia 2 The leading integrated telecom provider in the North-Western Federal District RegionTelephone density Europe 60 Russia 28,8 NWFD 35 St.Petersburg 41,9

3. International ratings Issuer Credit Rating Corporate Governance score InternationalNational Standard&Poor'sFitchStandard&Poor's Standard&Poor's (1-10) Russia BBB-/Stable ruAAA Uralsvyazinform B+/Stable BB-/Stable - 6.0 North-West Telecom B-/Positive- ruBBB+ 5.05.0 Centertelecom CCC+/StableВ-/Negative ruBB+ 4.84.8 UTK CCC+/Negative- ruBB 4.44.4 Volgatelecom B+/Stable- ruA+ 5.15.1 Dalsvyaz - B/Positive- 4.84.8 Sibirtelecom - B+/Positive- 4.74.7 S&P Transparency Index of North-West Telecom grew to 62% from 44% in 2003 It is the 8th among 50 largest Russian companies 3

4. Share capital structure According to our estimations, foreign investors own 30% of ordinary shares 4.4% of ordinary shares is converted into ADR 1st Level and are traded in the USA Over-The-Counter market (NWTEY), Berlin- & Frankfurt Stock Exchange Free float is estimated as 23% ORDINARY SHARES PREFERRED SHARES (прогноз) 4 Net profit distrubuted as dividends, MUSD 4.3 11.7 2.4 2002 20032004 +79% +172% Dividend Yield (D/P) Ordinary shares Preferred shares NWT1.35%3.74% Telecom sector average 0.48%3.77% % Net Profit 23% 16% 24%

5. In 2004 NWT was the leader in capitalization growth among Russian Regional Telecom Operators Share & Bond market 5 Price of ordinary shares increased by 29% Price of preferred shares increased by 42% Trade volume of ordinary shares grew by 93 % Trade volume of preferred shares grew by 113 %

6. Share & Bond market Capitalization of the company grew 2.5 times since merger in November 2001 6

7. Share & Bond market According to the latest researches, upside potential of ordinary shares is 44%, preferred shares – 80% 7

8. Share & Bond market NWT Corporate bonds track record The 3rd corporate bond issue was placed on March 3 rd, 2005. The issue was 2.5 times oversubscribed. Significant demand originated from foreign investors. Volume, MUSD Yield 20021020.8% 20035014.4% 20051101109.58% 8

9. Develop share and corporate bond markets Strengthen market position in corporate and Value Added Services (VAS) segments Improve financial performance Develop sound long-term corporate strategy Key business objectives 9

10. Strategic Goals  Raise investment attractiveness & securities liquidity  Implement corporate governance approach fit to requirements of International Investment Banking professionals  Improve reputation management quality Planned in 2005  Issue of Level I ADRs for preferred shares  D eveloping ADR trading on European stock markets (Frankfurt & Berlin Stock Exchanges) Developing share and bond markets 10

11. Strengthening market position in corporate and VAS segments NWT has strong positions in both retail and infrastructure segments Market shares in corporate (26%) and VAS (34%) segments are to be improved Local access 73 % DLD & ILD 65 % Data transmission & channels leasing 65 % Documentary communication 34 % Regional Market Share – 27% by revenues 11

12. Strengthening market position in corporate and VAS segments 200320042005 14.3 24.3 33.7 +69.9% +38.7% forecast Internet access Data transmission Next Generation network services Intellectual network services Revenue from VAS, MUSD 12

13. Improving financial performance Financial Highlights, RAS MUSD Financial statement (IAS) is available: www.nwtelecom.ru (Language:English)> Economic and Finance >Financial statement (according to Ineternational Accounting standards), Balance sheets http://www.nwtelecom.ru/pubsas/test--C7740C6ECBAA11D5AE4B0050045260BB/lang--eng/index.html

14. Average subscriber fee, USD 6.96.9 5.75.7 4.34.3 2 4 6 8 10 200320042005 +33% +21% forecast 10 forecast Long-distance traffic, mln. min 2,015 1,593 1,365 1000 1500 2000 2500 200320042005 +17% +27% Improving financial performance Organic growth (24%) 2004 Revenue growth drivers 14 Non-Organic growth (9%) Consolidation of Lensvyaz and Svyaz Komi as of October 1, 2004

15. Improving financial performance Revenue Structure 2004 533 MUSD 676 MUSD 2005 (forecast) 676 MUSD 15 +27%

16. Improving financial performance 2005 (forecast) 2004 502 MUSD 8%8% 543 MUSD 16 Cost Structure

17. Improving financial performance Average number of personnel 2004 2003 2005 forecast 15,000 20,000 10,000 5,000 35,000 30,000 25,000 225 300 150 75 375 00 37,012 34,735 34,030 262 420 367 450 40,000 Average monthly wage Personnel, people Wage, USD Personnel optimization Key factors influencing number of personnel: Improving organization structure Implementation of business-units structure Network modernization Between 2001 and 2003 personnel was reduced by 13% 17

18. Improving financial performance CAPEX, MUSD In 2005, subscriber base will increase by 149 ths numbers Digitalization rate will raise from 48% to 52% 10 MUSD will be invested in VAS + 29% 2005 (forecast) 2004 130.8 168.1 18

19. Improving financial performance In 2005 financial debt will increase by 70 MUSD to 305 MUSD 2005 funding program is aimed to refinance short-term debts and includes the following: 3 rd corporate bond issue (issued on March 3 rd ; volume 100 MUSD; maturity 6 years) Long-term bank credits (75 MUSD) 246.4 MUSD 305 MUSD +25% 2004 2005 (forecast) 19 Funding

20. 2005 forecast 2003Average RTOs 2004 Improving financial performance Current ratioEquity to total assets ratio 2005 forecast 2003Average RTOs 2004 0.61 0.550.55 0.80 0.72 20

21. Strengthen achieved market positions & expand to new market segments Improve company’s economic efficiency Modernize network infrastructure Introduce highly efficient management systems and procedures Developing sound long-term corporate strategy 21 Create a strong basis for growth of company’s capitalization

22. Chairman of Board of Directors ………………..……. Valeriy Yashin Chief Executive Officer ………………….…….…….. Vladimir Akulich Аuditor ……………………………………….…………………. Ernst & Young Registrar ………………………………………….……… Registrator-Svyaz ADR Depositary …………………………………………..……….. JP Morgan URL………………………..…………………….……. www.nwtelecom.ru North-West Telecom 2 Contacts: Gorokhovaya str. 14/26, St.Petersburg, Russia  +7(812) 595-45-64 E.Tomilina@nwtelecom.ru

23. Thank you for your attention!