1. 1 Presentation for the Investors UralSib (NIKoil) Alexander V. Zheludkov Vice President of Corporate Development Dalsvyaz OJSC October 11, 2004 RTS: ESPK MISEX: DLSV ADR (OTC): FEEOY

2. 2 The Russian Far East Dalsvyaz is the leader of the Far East Telecommunications market; The largest region of the Russian Federation; Boarders on North Korea, North America, China, Japan; Territory - 36.4% (6.2 mln. sq. km) of total Russian boundaries; Total number of inhabitants – 6 mln. people - 4% of total number. From which 4,7 mln. (80%) is urban citizens; Dalsvyaz provides services in seven regions of the Russian Far East. 1

3. 3 Dalsvyaz in 2003 The Leader of the Far East Telecommunications Market Dalsvyaz market share 59.5%. 72% Internet market 87% Local telecommunications market 81% Long-distance telecommunications market 100% Mobile Telecommunications market in Magadan region and 50% in Kamchatka region. Stable increase in activity indices Installed network capacity increased 12%. Earnings increased 28% Increase of income from Mobile telecommunications - 61% Internet – 52% Local Telecommunications – 38% Long-distance and international telecommunications – 16% Number of the staff reduced 5,5%. Cash-flow increased more than twice Market capitalization increased 15%. Dividend growth common shares is 126% preferred shares is 129% 2

4. 4 Dalsvyaz Market Share on the Russian Far East Telecommunications Market Telecommunications market is estimated to grow three times in 2006 in comparison with 2001. The main factors of market growth: -Dissatisfied demand for traditional telecommunications services; -Regional economy growth; -Increasing in demand for the alternative services; Forecast for Dalsvyaz market share in 2006 – 50%; Stable shares in traditional services (81%); Not less than 70% of internet service market; Geographical expansion of cellular telecommunications services provision; Reaching 15-20% of wireless telecommunications market in the Russian Far East. Dalsvyaz, OJSC market share in 2001- 2006., billion rubles. 4.1 5.3 6.8 8.7 10.2 12.2 200120022003200420052006 8.3 10.6 11.4 17.3 20.4 24.4 х 3 year 3

5. 5 The Main Financial Results The 1st half of 2004 Income Statement Thousands of rubles Revenue 3 016 900 Operating expenditures 2 530 402 Income 486 498 EBIT 295 667 Net Income 213 993 EBITDA 463 600 EBITDA to Revenue 15.4% Income Statement Thousands of rubles Revenue 4 132 995 Operating expenditures 3 628 729 Income 495 203 EBIT 1 286 791 Net income 928 744 EBITDA 1 687 196 EBITDA to Revenue 40.9% The 1st half of 2003 Growth 37% 43% 1.7% 435% 434% 364% 4 Growth of telephones 22.9 thousand units.Growth of telephones 42.5 thousand units.

6. 6 Revenues by Service Shares Long-distance and International Local Revenue, billion rubles. 2.9 4.1 37.6% 1st half of 20031st half of 2004 Long-distance and international Local Others Internet Cellular Local communication – 38% - (1 445 568 thousand rubles) Long-distance and international communication –16% (1 578 172 thousand rubles) Cellular communication – 61% (141 347 thousand rubles) Internet – 52% (217 085 thousand rubles) Income growth from 5

7. 7 Dalsvyaz is one of the efficient Russian Telecommunications Operator DalsvyazDalsvyaz USIUSI SIBIRSIBIR UTKUTK NWTNWT CTCT VTVT 3.45 2.75 2.33 2.08 2.01 1.911.88 Revenue for line, 1st half of 2004, thousands rubles DalsvyazDalsvyaz 292 243 223 193 187 177 170 Revenue per worker for the 1 st half of 2004 thousands rubles Because of the different traffic structure, higher subscribers fees and high rates of incomes from modern services in the 1st half of 2004 Dalsvyaz became one of the three most efficient regional telecommunications operators; It is estimated that up to 2010 the index «revenues for line» will increase up to 11 thousand rubles, and «revenues per worker» - up to 1.8 mln. Rubles per year. USI – Uralsvyazinform; Sibir – Sibirtelecom; UTK – Southern Telecommunications Company; NWT– Noth-West Telecom; CT – Centertelecom; VT – VolgaTelecom; 6 USIUSI NWTNWT UTKUTK SIBIRSIBIR VTVT CTCT

8. 8 Company Strategy Increasing shareholders’ welfare; Increasing of income share from modern services; Increasing of mobile market share; Keeping dominating position on the fixed-line telecommunications market; Provision of the whole range of modern telecommunication services; Increasing of customer service quality. Reduction of operational expenditures; 7

9. 9 Investment Plan 200120022003 2004 2005 2006 2007200820092010 year Structure and Volume of Capital Investments 2001- 2010, billion rubles. 0.39 0.23 1.9 3.4 2.7 2.73 3.0 3.2 3.5 3.9 The aim of the investment program is the establishment of the high- capacity informational structure; The development of the local communication will provide the installation of 2.2 billion numbers up to 2010, 37.5% of installation capacity will be changed; 54% 29% 64% 24% 7% 5% 77% 4% 14% 5% 73% 12% 0.4% 14.6% 83% 9% 7% 1% 84% 7% 2% 84% 8% 7% 1% 84% 7% 8% 1% 84% 7% 8% 1% 83% 7% 9% 1% Upgrade and modernization of the local network Increasing of work efficiency in Dalsvyaz ! 8

10. 10 Financing Resources 0.39 0.23 1.9 3.4 2.68 2.73 3.0 3.2 3.5 3.9 Factual and Forecast Volume of Capital Investments 2001- 2010, billion rubles. 9% 81% 100% 200120022003 2004 2005 2006 2007200820092010 20% 80% 24% 76% 2003 – the increasing of capital investments 8 times (up to 1.9 bln. Rubles) in comparison with 2002 owing to capital loan; In 2003 the bond-loan for 1 bln. Rubles was made; After 2003 the volume of capital investments is on the level of 2.68- 3.9 bln. Rubles annually; Up to 2010 the decreasing of loan assets in the structure of capital investments up to 9% (279 bln. Rubles) is estimated; The base of Dalsvyaz financial policy is diversification of loan capital resources and decreasing of its share. 62% 38% 46% 54% 44% 56% 29% 71% 20% 80% 91% 9% year 9 Borrowed Capital Own Capital

11. 11 Increasing of Digitalization and Installed Capacity Network Installed Capacity, billion lines 200120022003 2004 2005 2006 2007200820092010 1.1 1.2 1.3 1.5 1.7 1.9 1.2 2.2 2.4 2.6 67% 33% 39% 61% 53% 47% 35% 65% 25% 75% 16% 84% 10% 90% 10% 95% 100% Up to 2010 Dalsvyaz network installed capacity is estimated to increase more than 2.3 times and will include 2.6 mln. lines; Up to 2010 it is planned to substitute all the old switchboard for digital ones. It’ll allow to reduce: -personnel more than twice; -expenditures for maintains in 3 –4 times; -expenditures of electric power in 4-5 times - to increase the service quality; Up to 2010 it is planned: -to increase the density of telephonization twice in comparison with 2001 up to 38.9 telephone sets per 100 inhabitants. year 10 Ten-step Switchboards Digital Switchboards

12. 12 Revenue Forecast by Types of Services х 5.8 Revenues is of 2001 – 2010 billion rubles 4.1 5.3 6.8 8.7 10.2 12.2 14.6 17.2 20.4 24.1 2001200220032004200520062007200820092010 year 34% 51% 5% 3% 8% 37% 47% 36% 43% 33% 45% 13% 3% 5% 1% 6% 8% Tariff Incomes х 3.6 11 International and long-distance communication Local service New Services Mobile Service Other operators Other Services

13. 13 Profitability Increasing 2001200220032004200520062007200820092010 year The Growth Rate of Revenue will be Higher then Growth Rate of Operational Expanses since 2005 because of the network digitalization and decreasing of staff number. Since 2001 to 2010 based on the strategy of growth, diversification, and increasing service quality Dalsvyaz is planning: -Revenue growth in 5.8 times. -Net Income increasing in 21 times; -EBITDA growth in 13 times. -In 2003 the EBITDA will be about 1 billion rubles. It is expected to be 9.3 billion rubles in 2010. In 2003 Net Income was 232 mln. rub. It is expected about 4.9 billion rubles in 2010. 27% 24% 28% 28% 29% 31% 16% 18% 15% 19% 13% 20% 13% 18% 12% 19% 11% 18% EBITDA 23% 42% 18% 13% 11.8% 10.5% 10.2% 11.2% 12.5% Net -78.4% 82.7% 115.6% 30.6% 57.2% 47.7% 29.5% 32.9% 29.7% Income 200320042005200620072008200920102002 Increase Other expenditures 12 Net Income Operational expenditures

14. 14 Generation of Free Cash Flow 20022003 2004 2005 2006 2007200820092010 The free cash flow 2001 – 2010, million rubles. 19 33 25 33 39 43 53 61 It is expecting that Dalsvyaz’s free cash flow will increase more then in 3 times (61 million rubles). The decreasing of free cash flow during the period since 2004 to 2005 was because of the sharp increasing of capital investments. 40 year 13

15. 15 The Increasing of International Ratings The Rating of Corporate governance of Standard & Poors The Credit Rating of Fitch Ratings 5.3 5.8 2003 2004 Fitch Ratings increased the long run and credit ratings of Dalsvyaz from B- forecast “stable” to “B” forecast “positive”. The increasing of rating is because of: - strong position of Dalsvyaz at the Far East region; - accountability to the main shareholder Svyazinvest OJSC; - improvement of financial results. The increasing of corporate governance rating to 5.8 is because of: - continuous increasing of quality of corporate governance of the Company; - the increasing of number of independent directors in the Board of Directors to 4 persons; -the observance of shareholders rights - the Code of corporate governance took place. В - В 20022003 2004 14

16. 16 Dalsvyaz’s Shares at RTS QUOTES October, 06 2004 Common shares Ticker: ESPK Face-value 20 rub. Shares outstanding 95 581 421 52 weeks max. price $1.45 52 weeks min. price $0.89 52 weeks WA price $1.11 The last price $1.19 Change +3.28% Trading volume 4 750 730 USD Dividends 0.40 руб. Proffered shares Ticker: ESPKP Face-value 20 rub. Shares outstanding 31 168 901 52 weeks max. price $1.15 52 weeks min. price $0.76 52 weeks WA price $0.95 The last price $0.99 Change +1.28% Trading volume 1 345 317 USD Dividends 0.73 rub. Common Shares, June 2003 – October 2004. ESPK 1.14 ESPK 15

17. 17 ADR of Dalsvyaz is traded on OTC Dalsvyaz is implementing ADR program of 1 level (Pink Sheets) since 2002. Transfer agent is The trading is on Over the Counter market. 1 ADR is equal 30 common shares of Dalsvyaz OJSC. The amount of shares outstanding is 79 406 units. 52 weeks max. price is $ 27. 52 weeks min. price is $ 25. The last price is $26.1 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 FEEOY 16

18. 18 The Growth of Market Capitalization Feb.04. September 23, 2003 – 2004, million. USD. 122 115 116 133 147 157 145 133 125 106 126 140 Sent.03.Okt.03. Novб.03.Dec.03. Jan.04. Apr.04. May.04. June.04. July.04. Aug.04. Sent.04. In September 2004 the market cap increased 15% comparing to the same period of time of 2003. The decreasing of market cap has been covered by increasing trend during last two months. The growth of market cap during period from July to September 2004 is 32% One of the main goals of IR program of FETEC is increasing of market capitalization. 1717

19. 19 Potential Growth of Market Cap. The Growth of License Fee average 13% per year to 355 Rub. per month in 2010. The Growth of Revenue Share of new services to 12% in total revenue in 2010. The Share of Revenue of Mobile service in the total revenue is 3% in 2010. The Growth of Lines in 2.3 times in 2010 to 2.6 million units. The Growth of Digital Switchboard to 100% in 2010. The Growth Rate of Revenue will be Higher then Growth Rate of Operational Expanses since 2005. The Growth of Free Cash Flow in 3.2 times in 2010 comparing 2002. The Decreasing of Stuff 5.5% (fact of 2003) forecast is 2-5% per year 166 lines per 1 worker in 2010 comparing 61 lines per worker in 2003. The decreasing of share of borrowed funds in the investment structure to 9% in 2010. The increasing of EBITDA to 29% in 2010. 18

20. 20 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. 19 All the financial results, included in this presentation, were accounted according to Russian Accounting Standards.

21. 21 Contact Information Questions? Investor Relations Department FETEC OJSC Svetlanskaya St., Vladivostok, 690590 Russia Тel.: +8 (4232) 208-500, ext. 1306 IR@dsv.ru www.dsv.ru 20