1. NORTH- WEST TELECOM Investment Week St. Petersburg November 2003 OPEN JOINT-STOCK COMPANY A.V. Shalagin Deputy General Manager Economics and Finance Director

2. North-Western Federal District Area 1. 7 MIO sq. km 9.8 % of RF Area 1. 7 MIO sq. km 9.8 % of RF Population 14.3 MIO people 9.9 % of RF Population 14.3 MIO people 9.9 % of RF City population 82 % City population 82 % Income 3800 roubles/month/person Income 3800 roubles/month/person

3. CORPORATE REORGANIZATION IN 2001-2002 OJSC North-West Telecom OJSC Artelecom OJSC Artelecom OJSC Murman Electrosvyaz OJSC Murman Electrosvyaz OJSC Cherepovets- electrosvyaz OJSC Novgorodtelecom OJSC Electrosvyaz of Vologda Oblast OJSC Electrosvyaz of Vologda Oblast OJSC Electrosvyaz of the Republic of Karelia OJSC Electrosvyaz of Kaliningrad Oblast OJSC Electrosvyaz of Kaliningrad Oblast OJSC Electrosvyaz of Pskov Oblast OJSC Electrosvyaz of Pskov Oblast OJSC PTN OJSC SPb Telegraph OJSC SPb MMT

4. REORGANIZATION PLANNED FOR 2004 ОАО «Северо- Западный Телеком» OJSC Lensvyaz OJSC Svyaz of the Republic of Komi OJSC Svyaz of the Republic of Komi OJSC North- West Telecom Maintelecommunications operator in the North-West of RF

5. DYNAMICS OF INDUSTRY INDICES 419 490 Receipts per employee, thousand roubles/year 336 117 109 125 Lines per employee, units 20022003 (planned ) 2004 (forecasted )

6. Annual growth 20-25% 0 4 8 12 16 2001200220032004 Years Receipts, billion roubles 13,6 8,1 10,1 12,2 DYNAMICS OF RECEIPTS forecasted planned

7. STRUCTURE OF RECEIPTS LONG-DISTANCE AND INTERNATIONAL COMMUNICATION LONG-DISTANCE AND INTERNATIONAL COMMUNICATION 44% 47,8% 4% 4,2% LOCAL COMMUNICATION LOCAL COMMUNICATION ISDN, INTELLIGENT DATA NETWORKS, INTERNET ISDN, INTELLIGENT DATA NETWORKS, INTERNET OTHER

8. DYNAMICS OF PROFIT, billion roubles 2002 2003 (planned ) 2004 (forecasted ) 2,6 0,3 2,8 0,8 3,3 1,1 Net profit Profit from sales

9. CAPITAL INVESTMENT, billion roubles CAPITAL INVESTMENT, billion roubles 2002 2003 (planned ) 2004 (forecasted) 1,71,7 3,03,0 4,04,0

10. COMPANY’S POSITION AMONG INTER-REGIONAL COMPANIES *according to the data of OJSC Svyazinvest for the 1 st half of 2003 0,73 Financial stability ratio Financial stability ratio 1 0,11 Absolute liquidity ratio Absolute liquidity ratio 1 1,19 Current liquidity ratio Current liquidity ratio 2 2 50,21 Profit from sales per employee (thousand roubles) Profit from sales per employee (thousand roubles) INDEX VALUE POSITION

11. OJSC NWT’S SHARE OF THE SERVICES MARKET OJSC NWT’S SHARE OF THE SERVICES MARKET DATA TRANSMISSION SERVICES AND INTERNET 14% DATA TRANSMISSION AND LEASE OF COMMUNICATION CHANNELS 57% LOCAL TELEPHONE COMMUNICATION 59% LONG-DISTANCE AND INTERNATIONAL COMMUNICATION 62%

12. INCREASING THE INVESTMENT ATTRACTIVENESS IN 2002-2003 July 2003 – the first holders of 1 st level ADR are registered. ADR are issued against 2,313,000 deposited shares (0.3% of all common shares) July 2003 – the first holders of 1 st level ADR are registered. ADR are issued against 2,313,000 deposited shares (0.3% of all common shares) The financial reports prepared according to the international standards are disclosed to the public The financial reports prepared according to the international standards are disclosed to the public Four committees are formed in the Board of Directors: Remuneration and Reporting Committee Corporate Management Committee Budget Committee Corporate Finance and Investment Committee Four committees are formed in the Board of Directors: Remuneration and Reporting Committee Corporate Management Committee Budget Committee Corporate Finance and Investment Committee 2 nd place in the competition held by RTS in 2002 – The Best Corporate Site 2 nd place in the competition held by RTS in 2002 – The Best Corporate Site

13. MEASURES TO INCREASE THE INVESTMENT ATTRACTIVENESS A long-te rm programme of increasing the capitalization and connections with investors A long-te rm programme of increasing the capitalization and connections with investors Preparing and adopting the Corporate Behaviour Code Preparing and adopting the Corporate Behaviour Code Undergoing the shares listing at the western stock exchange (2 nd level ADR) ) Undergoing the shares listing at the western stock exchange (2 nd level ADR) ) Reducing the time of preparing and disclosing financial reports complying with international standards Reducing the time of preparing and disclosing financial reports complying with international standards

14. RATING DYNAMICS IN 2002-2003 5,6 5,9 CCC/stable B-/stable CCC/stable B-/stable Corporate management rating International credit rating Credit rating according to the national scale ru-BB- ru-BBB ru-BB- ru-BBB STANDARD & POOR’S

15. BONDED LOANS minimizing the value of borrowed capital reducing the percentage of currency liabilities ensuring investment funding increasing the time for attracting resources in roubles minimizing the value of borrowed capital reducing the percentage of currency liabilities ensuring investment funding increasing the time for attracting resources in roubles Goals of issue : Areas of use : Debt refinancing Investment project financing

16. PARAMETERS 1 st issue2 nd issue Face value volume of the issue, MIO roubles 3001500 Number of bonds, thousand pcs. 3001500 Circulation period, years 24 Floatation method Public subscription Periods of presenting bonds for retirement 3 months, 3 months, 6 months in 2 years Date of retirement 09.04.2004 8.10.2006 – 30% of the face value 8.03.2007 – 30% of the face value 8.10.2007 – 40% of the face value KEY PARAMETERS OF LOANS

17. 1st issue 300 570 20,8%20,8% 1500 2 nd issue 2640 14,4%14,4% - issue volume, MIO roubles. - demand volume, MIO roubles - profitability, % COMPARISON OF LOAN PARAMETERS

18. STRUCTURE OF BOND REPAYMENT 10% 12% 14% 16% 18% 20% 22% Jul.02 Oct.02 Jan.02 Apr.03 Jul.03 Oct.03 Jan.04 Apr.04Jul. 04 Oct. 04 Jan. 05 Apr. 05 Jul. 05 Oct. 05 Jan.06 Apr. 06 Jul. 06 Oct. 06 Jan.07 Apr. 07 Jul. 07 Oct. 07 Coupon rates, % per annum 0 100 200 300 400 500 600 700 Repayments, MIO roubles. coupons of the first issue coupons of the second issue Stage-by-stage retirement of the second issue The coupon rate will be determined by the Board of Directors Retirement of the first issue

19. COMPARISON OF LOAN INDICES OF INTER-REGIONAL COMPANIES 12 12,5 13 13,5 14 14,5 15,0 14.01.200401.08.200417.02.200505.09.200524.03.200610.10.200628.04.200714.11.200701.06.2008 Profitability by the moment of retirement, % Profitability by the moment of retirement, % Tsentrtelecom 3 Tsentrtelecom 2MGTS 3 RTK Leasing Tsentrtelecom 2 Volgatelecom YuTK Uralsvyazinform 3 Sibirtelecom Volumes of loans Reduction of profitability of the 1st issue bonds 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% Retirement date May 2002 October. 2003 NWT 2 Dalsvyaz

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