1. Investor Presentation
APRIL, 2004

2. This presentation contains forward-looking statements.
Such statements are not statements of historical fact, and reflect the beliefs and expectations of the Company's management. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects" and "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Accordingly, the actual results of operations of the Company may be different from the Company's current expectations, and the reader should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments.
APRIL, 2004

3. KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS
OVERVIEW
KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS
APRIL, 2004

4. CENTERTELECOM
CenterTelecom is a leading fixed-line provider of telecommunication services to Russia’s central region, which is Russia’s most densely populated region, covering about 20% of the total population. The Company currently offers traditional telephone services, Internet, IP telephony, data transmission, wave and cable television, wired and VHF radio broadcasting and plans to implement fiber optic lines, SDH networks, and advanced wireless access systems. CenterTelecom is led by a new and shareholder oriented management team with many years of telecom experience that has leveraged the Company’s inherent stability and achieved sales growth of 116.9%, net profit margin grew by 5.8% , while installing over 571,000 numbers over the same period.
APRIL, 2004

5. ATTRACTIVE REGION Central Region:
covers 3.8% of Russia’s territory
26.2% of total population of 38 mln people (most densely populated)
12.8% of GDP of RUR 1,703 bln
One of the highest monthly income per capita in Russia - RUR 5,732.2
Fixed-line penetration level is 17.3 %
6.4 mln lines installed by end of 2003
Borders with Ukraine and Byelorussia
Tver
Yaroslavl
Kostroma
Ivanovo
Vladimir
Smolensk
Kaluga
Ryazan
Tula
Bryansk
Orel
Lipetsk
Tambov
Voronezh
Kursk
Belgorod
Moscow
APRIL, 2004

6. COMPANY HISTORY Founded in 1890 Privatized in 1994
Came to existence as a united company in upon merger of 17 regional telecom companies of central region of Russia
2003 is the first year as a united company
APRIL, 2004

7. SHAREHOLDER STRUCTURE
APRIL, 2004

8. ORGANIZATIONAL STRUCTURE
PRESIDENT
Carla
Cico
Shareholders meeting
PRESIDENT
Carla
Cico
Board of Directors
PRESIDENT
Carla
Cico
Compensation & Benefits
Committee
General Director
PRESIDENT
Carla
Cico
Corporate Governance
Committee
PRESIDENT
Carla
Cico
Budget & Investment planning
Committee
PRESIDENT
Carla
Cico
PRESIDENT
Carla
Cico
Audit Committee
PRESIDENT
Carla
Cico
Financial
Director
PRESIDENT
Carla
Cico
Commercial
Director
PRESIDENT
Carla
Cico
Technical
Director
PRESIDENT
Carla
Cico IT
Director
PRESIDENT
Carla
Cico
Security
Director
PRESIDENT
Carla
Cico HR
Director
APRIL, 2004

9. STRONG MANAGEMENT TEAM
New and shareholder friendly management team
Management accomplishments during the last 3 years:
developed and implemented business strategy
unified tariffs policy
centralized Internet-traffic
centralized work with multinationals
achieved all business targets
efficient staff management
CenterTelecom Service company
Ability to find non-standard efficient solutions
APRIL, 2004

10. STOCK PRICE DYNAMICS
$800 Mln Market Cap Stock price dynamics (RTS: ESMO, ESMOP).
Common stock
Preferred stock
APRIL, 2004

11. KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS
OVERVIEW
KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS
APRIL, 2004

12. KEY PRODUCTION INDICATORS
6.4 mln access lines installed
27 long distance connection stations
3,9 mln wire broadcasting points
cable TV subscribers
1 700 Internet-hosts
APRIL, 2004

13. MARKET SHARE IN MAJOR SEGMENTS
APRIL, 2004

14. KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS
OVERVIEW
KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS
APRIL, 2004

15. OPPORTUNITIES IN THE SECTOR
Intellectual network services, packet and integrated services,
IP-telephony
Introduction of innovations: Intelligent Network Service, IP-telephony, service package offering.
Call-center has strong potential and may be used for own needs: telemarketing, Help Desk, Card platform support.
Internet services
Broadband access through regular radio network.
Introduction of Ethernet as a physical and channel level technology will allow to use inexpensive equipment, which brings significant cost reduction for end- users.
APRIL, 2004

16. OPPORTUNITIES IN THE SECTOR
Long-distance telecommunication services
Telephone cards.
Expanding IP-telephony services to public and business segments
Local telecommunication services
Wireless access to general purpose telephone network through DECT and WLL technologies for high net worth customer segments.
APRIL, 2004

17. STRATEGY Increase share of value-added services in profit structure
Achieve revenue market share in telecommunication services in Central region of 62% by 2006
Average annual income growth of 25%
Increase non-regulated services market share to 75%
Achieve share of non-regulated services in profits of at least 30%
Increase profit share from corporate sector to 52%
APRIL, 2004

18. VALUE-ADDED SERVICES INS based services Call-centers
Multi-service network around Moscow
APRIL, 2004

19. BROADENING OF CORPORATE CLIENT BASE
Acquisition of ROSNET
Large corporate client base, including Central Bank of Russia
2003 Revenue - $30 mn, EBITDA - $4.8 mn
Licenses as alternative telecom operator in 31 region
Licenses for data services in 51 region
Significant resource allocation to acquire alternative operators in 2004
Development of multi-service network
APRIL, 2004

20. GROWTH DRIVERS Traffic growth Tariffs increase Time billing
Change of business relationship with Rostelecom
APRIL, 2004

21. CHALLENGES IN THE SECTOR. SOLUTIONS
Long-distance traffic fees
Competition with wireless operators
Competition with alternative providers
APRIL, 2004

22. KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS
OVERVIEW
KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS
APRIL, 2004

23. KEY FINANCIALS (RAS) 2002 2003 2004E Revenues 16,400 20,890 27,010
Operating expenses , , ,856
EBITDA , , ,613
Net profit , , ,661
CAPEX , , ,418
RUR Mln
APRIL, 2004

24. REVENUE
In 2003 gross revenue reached RUR 20.1 mln, 27,5% growth to 2002
APRIL, 2004

25. REVENUE & COST DYNAMICS
RUR Mln
Revenues
Operating costs
APRIL, 2004

26. REVENUE STRUCTURE APRIL, 2004 WWW.CENTERTELECOM.RU RUR Mln 63%
Private sector
Budget
organization
62.1%
Commercial
organization
60.3% 7%
7.1%
30%
7.6%
31.6%
31.2%
APRIL, 2004

27. OPERATING COSTS AND EXPENSES
In 2003 operating costs and expenses totaled RUR 15.7 mln, 29% increase 2002
APRIL, 2004

28. DEBT FINANCING
RUR Mln
APRIL, 2004

29. CAPITAL INVESTMENTS
In 2003 RUR 7.6 bln were invested (57.8% growth to 2002)
APRIL, 2004

30. CAPITAL INVESTMENTS Raised funds Company own funds APRIL, 2004

31. OPERATING HIGHLIGHTS Lines installed Lines in service APRIL, 2004
2002
2003
2002
2003
2002
2003
2002
2003
APRIL, 2004

32. OPERATING HIGHLIGHTS Utilization rate ARPU APRIL, 2004
2002
2003
2002
2003
APRIL, 2004

33. CORPORATE GOVERNANCE AND TRANSPARENCY
The best Corporate Governance Code in industry
4 functioning Committees
Published financial statements according to IAS for 2002
S&P Corporate Governance Rating – 5.3
APRIL, 2004

34. CONTACTS Andrey Kalinchenko Investor relations manager
Tel:
Fax:
Alexei Mironov
CapitalLogica-McBride
Tel:
Fax:
CenterTelecom at RUSTOCKS:
APRIL, 2004

35. THE CENTER OF POTENTIAL
CENTERTELECOM-
THE CENTER OF POTENTIAL
APRIL, 2004