1. 1 RTS: ESPK MICEX: DLSV ADR: FEEOY Investor Relations Presentation for Analysts and Investors Group of Brunswick UBS Chief Executive Officer Far East Telecommunications Company Anton A. Alexeev May 26, 2005

2. 2 Investor Relations Safe Harbor The forward-looking information, which is included in this presentation, are the statements, made pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. The presentation contains information about the future events and financial results, estimated by the Company in the future. These statements involve a number of risks and uncertainties. Among the factors that could cause future results include: deterioration of economy; changes of the laws, which are currently in force; increase in dependence on “Rostelecom”,OJSC, concerning the questions of proportion establishment, according to which the payment for international and long-distance traffic is divided: changes in rate of currency exchange; changes in percentage rates; changes in prices for raw materials and services, used by the issuer; changes in political situation in the country; military conflicts and cases of emergency; impossibility to continue the license for carrying out activity. The more detailed description of risks and uncertainties of the company you can find in the quarterly accounts and annual reports of “DALSVYAZ”, OJSC. The majority of the mentioned factors are beyond the control or the possibility of prognostication on the Company’s behalf. Taking onto consideration all the above-mentioned information, the Company does not recommend to rely upon any forward-looking statements, included into this presentation. The Company does not commit itself to disclosing any changes to this presentation with the aim to show the events or circumstances, which took place after the date of this presentation, or with the aim o show the unforeseen events, with the exception of the cases when this disclosure is required in accordance to the Private Securities Litigation Reform Act of 1995. All the financial results, included in this presentation, were accounted according to Russian Accounting Standards. 2004 results are audited and comparable.

3. 3 Investor Relations Far East Federal District 2004 Performance Review Financial Results for 2002 – 2004 Technical Results for 2002 – 2004 Plans and guidance for 2005 FETEC at the capital markets Q&A Contents

4. 4 Investor Relations FETEC is the leader of the Far East Telecommunications market; FETEC provides services in 7 regions of the Russian Far East. The largest region of the Russian Federation; Borders on North Korea, North America, China, Japan; Territory of 3.3 million square km (which is 9 times more than territory of Germany). The number of inhabitants – 6.1 mln. people – 4.2% of total Russian number. 4,8 mln. (80%) of them are urban citizens; Region of rending services Russian Far East Federal District

5. 5 The Leader at Russian Far East Telecommunications Market Market share at the served region is 51%: Investor Relations 85% - local telephone services 89,5% - long distance domestic and international communications 60% - the Internet 27% - cellular communications (in Kamchatka and Magadan regions) Results for 2004

6. 6 Financial Highlights of 2004 Strong Y-o-Y Financial Results Growth (compared to 2003) Revenue growth – 30.6% (the highest in the industry) Net income from operating growth – 66.4% (the highest in the industry) Net income (including income from assets sale) increased by 6 times EBITDA increased by 90% EBITDA (including income from assets sale) increased by 3.5 times The level of digitalization (upgrading) is 61.7% Operated net capacity increased by 10% (or 115,7 thousand subscribers) Average staff number increased by 1.8% (341 people) Revenues increased to : cellular – by 73,6% to 332 million rub. new services – by 61% to 524 million rub. local telephone services – by 30,6% to 3,2 billion rub. long distance domestic and international communications – by 10% to 3,2 billion rub. Investor Relations

7. 7 The Highest Revenue Growth Rate in the Industry 200220032004 +28.4% +30.6% Revenue (billion rub.) Revenue increase by 30.6% in 2004 was primary driven by sale increase of 1 825,1 million rub. and increasing tariff income of 227,9 million rub. Investor Relations Results for 2004

8. 8 Revenue Structure by Types of Services 30.5% 6 726 million rub.8 779 million rub. 2003 2004 Growth 43% Local Telephone Services 36% 2% 10% 4% 5% Long distance communications Local Telephone Services 38% Document Services New Services Wireless, Cellular Services Others 9% 4% 6% 2% 41% Investor Relations Document Services New Services Wireless, Cellular Services Others Long distance communications Results for 2004

9. 9 Expenditures from operating (million rub.) 20032004 Others expenditures Expenditures from other companies services Expenditures from OJSC Rostelecom Expenditures from other telecom operators (except operators of the Group) Electricity charges Material Expenditures Amortization and depreciation Expenditures for social Insurance Staff wages and Salaries 5 928 7 751 Investor Relations Results for 2004 2 941 2 353 671 812,2 627 315 480 385 143,1 127 314 244 823 1 192,1 481 535,3 529 706,3

10. 10 The Highest Net Income Growth Rate in the Industry 200220032004 Net Income from operating (million rub.) +37.4% +66.4% 200220032004 Net income, including income from assets sale (million rub.) +37.4% +526% Investor Relations Results for 2004

11. 11 Strong growth of the efficiency Revenue per line (thousand rub.) Revenue per worker (thousand rub.) 20022003 2004 20022003 2004 +21.4% +20.6% +35.4% +31.2% Revenue per line increased by 20.6% through revenue increase by 30.6%, and the network capacity put into operation increased by 10,2%. Revenue per worker increased by 31.2% through both revenue increase by 30,6% and decrease of average staff number by 0,5%. Investor Relations

12. 12 Triple EBITDA growth EBITDA (million rub) 20022003 2004 623 2 431 698 EBITDA* increased by 90% to 1.3 billion rub. EBITDA (including income from assets selling) increased by 3.5 times to 2,4 billion rub. EBITDA growth was primary driven by income before taxes up 510% (+ 1.3 billion rub), amortization and depreciation up 200% ( + 312 million rub.), and interests up 300% (+121 million rub.). EBITDA margin increased by 2.7 times to 27% (in 2003 - 10%). +12% +248.4% * EBITDA is calculated as income before taxes + amortization and depreciation + interests (%). Investor Relations 1 326 +90%

13. 13 130% revenue increase from local telephone services Revenues from local telephone services (million rub.) FETEC provides services in 7 regions of the Russian Far East. There are 6.1 million people live in the Far East, 80% of them live in the cities. Far East telecommunications market is still far from satiation. Telephone density at the end of 2004 was 24%. (20.5% in 2003). 20022003 2004 +22.7% +30.8% Local telephone services revenue increase was driven by subscribers number increase (+115,7 thousand) and by average tariff increase by 16.5%. Investor Relations

14. 14 Revenue from long distance domestic and international communications (million rub.) Revenue growth from long distance communications 20022003 2004 Long distance domestic and international communications revenue increased by 9,8% because of 12% growth of outgoing traffic. 20022003 2004 Long distance traffic growth (thousand minutes) +16.4% +9.8% +22.7% +12% Investor Relations

15. 15 161% revenue growth from new services Revenue from new services and data transmission (million rub.) 20022003 2004 200220032004 Internet (dial up) users number 213 304 485,4 39,1 20,9 217 325 524.5 Other new services (ISDN, IP-telephony, Data transmission) DSL users number 20032004 4 Internet (dial-up, DSL) +49.8% +61.4% +154.9% +9.7% +440% Investor Relations

16. 16 Strong new services traffic growth 200220032004 The Internet traffic volume (thousand minutes) 20032004 IP-telephony communications (thousand minutes) 200220032004 The Internet traffic volume (Gbytes) +74.4% +35% 72 871 98 375 +55.8% 153 228 +89,4% +49,7% 335 386 635 219 950 996 Investor Relations

17. 17 174% revenue growth from cellular services 191131 332 200220032004 Revenues from cellular services (million rub.) FETEC provides cellular services in two regions of the Far East: Kamchatka region (GSM-900/1800) and Magadan Region (GSM-900). Number of cellular subscribers 200220032004 +45.8% +73.8% +23.6% +162.7% Investor Relations

18. 18 Staff number decrease of 1.8% 200220032004 Average staff number, including outside deputies and workers, who work under the contracts (people) FETEC pursues the policy of staff optimization. In 2004 staff number decreased by 1.8% (341 people) compared to 2003. - 5.5% - 1.8% Investor Relations

19. 19 Capital Expenditures 200220032004 Capital Expenditures (million rub.) +146.7% +54.4% Investor Relations The main priorities of FETEC investment program in 2004 were net expansion and upgrading, increasing of extension intraband optical lines of transmission, new communication and informational technology inculcation.

20. 20 Installed net capacity Operated net capacity Strong increase of the net capacity 200220032004 1 191 1 331 1 508 1 087 1 143 1 259 Dynamics of the network capacity growth (thousand numbers) Installed net capacity increased by 13% compared to 2003. Operated net capacity increased by 10% compared to 2003. Quantity of telephone devices increased 115 702 numbers. Coefficient of installed 2002 2003 2004 network operating % 91,25 85,9 83,5 +11.7% +5.1% +13.3% +10.2% Investor Relations

21. 21 Level of the net digitalization (upgrading) 61.7% 38.7 48.3 61.7 200220032004 Electronic automatic exchanges share in the installed net (%) Investor Relations

22. 22 The structure of installed net capacity 200220032004 1 1911 3311 508 +11,7%+13,3% Investor Relations Installed net capacity (thousand numbers) Ten-step Switchboards Digital Switchboards Coordinate Switchboards Quasi-digital Switchboards

23. 23 Strengthening of competitive positions Increasing of Efficiency Net Expansion and Modernization (upgrading) Active developing of the new services Holding the leading position on the Far East Revenues and tariffs growth maintaining Expenditures optimization and their growth rate decreasing Staff number decreasing Low profitability assets selling Corporate governance efficiency increasing Subscribers quantity increasing (operated net capacity increasing) Optical network expansion Net carrying capacity expansion Net digitalization (upgrading) increasing The main FETEC goals in 2005 Investor Relations

24. 24 Market share forecast 4.1 5.3 6.8 8.9 10.3 12.2 200120022003200420052006 8.3 10.6 11.4 17.8 20.6 24.4 Growth by 3 times Investor Relations FETEC market share at the Far East Telecommunications Market 2001- 2006 (billion rub.)* In 2006 telecommunications market is estimated to grow by 3 times compared to 2001 or by 37% compared to 2004. The main factors of market growth: dissatisfied demand for traditional telecommunications services (telephone density is 24%); regional economy growth; demand increasing for the alternative services; Forecast for FETEC market share in 2005 – 50%; Local telephone services – 84%; Zonal telephone services – 100% Internet – 63% Cellular services – 24%* *Of Kamchatka and Magadan Regions *Company’s forecast

25. 25 Financial Guidance for 2005 8,9 10,3 +15% Revenue (Billion rub.) 2004 г.2005 г. Net Income from operation (million rub.) +18% 2004 г.2005 г. 304,2 360 Capital Expenditures (billion rub.) 2004 г.2005 г. 2,1 -43,5% 3,1 Investor Relations

26. 26 20042005 8,910,3 FETEC revenues by types of services (billion rub.) Revenue share from new services will increase to 9% Investor Relations Others Document services Wireless, cellular Services New Services* Long distance services Local telephone services *New services - the Internet (dial-up, DSL, ISDN), IP- telephony, data transmission

27. 27 Shareowner capital structure (April 26, 2004) Investor Relations

28. 28 FETEC Shares at RTS (list «B») QUOTES May 18, 2005 Common shares Ticker: ESPK Face value 20 rub. Shares outstanding 95 581 42 52 weeks max. price $1.5 52 weeks min. price $0.89 WA price $1.2 Preferred shares Ticker: ESPKP Face value 20 rub. Shares outstanding 31168 901 52 weeks max. price $1.37 52 weeks min. price $0.76 WA price $1.14 Volume of shares trading at RTS in 2004 году increased by 2.3 times to 19 million. USD. Volume of common shares trading at RTS (2003 – 2005) Investor Relations ESPK 200320042005 $ FETEC shares are also traded at MICEX in the list “B”. Ticker: DLSV, DLSVP +89%

29. 29 FETEC ADR at OTC Market FEEOY Investor Relations Dalsvyaz is implementing ADR program of 1 level (Pink Sheets) since 2002. Transfer agent is Bank custodian is ING Bank – www.ing.comwww.ing.com The trading is on Over the counter market. 1 ADR is equal 30 common shares of Dalsvyaz OJSC. The amount of shares outstanding is 1 274 418 units. The company issued financial results accordingly IAS since 2002 – www.dsv.ru the IR section.www.dsv.ru For more information visit www.adr.comwww.adr.com Price for last 52 weeks max min

30. 30 Market cap growth Market capitalization, December 31, 2003 – April 30, 2005 (RTS) At the end of 2004 FETEC market cap increased to $133,7 million, but at the end of April 2005 it increased by 30% compared to 2004 and reached $173 million. Investor Relations $ 173 million.

31. 31 Dividend growth Dividends (rub.) 200220032004 (recommended) Investor Relations Common shares Preferred shares

32. 32 International ratings Investor Relations 2002 20032004 Credit rating – Fitch RatingsCorporate governance rating Standard & Poors

33. 33 Thank you for attention! Investor Relations Questions? Investor Relations Department FETEC OJSC 57 Svetlanskaya St., Vladivostok, 690590 Russia Тel.: +7(4232) 208-500, ext. 1306 IR@dsv.ru www.dsv.ru