1. 1 September 4, 2003

2. Inter-Regional Telecommunication Company VolgaTelecom Territory – 665,000 sq.km Population – 21 million Population density – 31.6 people per sq. km Urban population – 70% GDP per Capita – US$2,270 Disposable income – US$105 per month VolgaTelecom offers: Traditional telecommunication services: Local (city and rural) telephony DLD, ILD Document transmission (fax) Broadcasting New telecommunication services: Internet and data transmission ISDN IP-telephony Intelligent communications network services Mobile communication Paging Fixed line penetration in Volga Average cost of fixed line telecom services as % of disposable income Urban penetration 2003 - 24.7%

3. 3 JSC “VolgaTelecom” was created by merging 11 regional operators of Volga macro-region on 30 November 2002 Increase in Market Cap. Increase of investment attractiveness Since the merger was completed and the stocks begin trading on RTS (end of March, 2003) the market cap. of the consolidated company increased by more than 40% Improvements in Marketing The ability to offer a full range of telecom services in the Volga macro-region The ability to undertake large scale network modernization and development of new services investment projects, due to more favorable conditions for raising funds Cost cutting Increasing efficiency of cost management via the introduction of a single accounting policy, unified investment and marketing strategy, separate cost accounting, and better corporate governance and strategy Improvements in corporate governance & transparency IAS financial results, improvements in IR- and PR, increasing management efficiency. The work on increasing Corporate Governance Rating – currently rated as 5.8 by Standard and Poor’s

4. 4 VolgaTelecom – the combined company today is: The largest fixed line network in Volga macro – region The largest fixed line operator (89% market share) and Internet - provider (70% market share) Modern telecommunication technologies Stable growth of revenues, and room for more efficient cost management Effective management technologies The parent company (100% consolidation) of “N. Novgorod Cellular Communications”- the number one mobile operator in Nizhny Novgorod and the seventh largest in Russia

5. 5 Charter capital – US$51,590,245 or 327,952,994 shares Nominal value per share – US$ 0.16 common shares 245,969,590 75% Preferred Shares 81,983,404 25% Including common shares underlying ADRs 9,231,838 (2.8 %) Charter capital Major shareholders Shareholders Holdings in Charter Capital 01.01.2003 Holdings in voting shares 01.01.2003 PJSC "Svyazinvest"38.0%50,7% CJSC "ING Bank (Eurasia)"14.8%15,6% CJSC "DKK"9.7%7,0% CJSC "Brunswick UBS Warburg Nominees" 4.6%3,0% CJSC KB "J.P. Morgan Amro Bank International" 3.7%3,7% CJSC "ABN Amro Bank A.O."2.2%0,9% LINDSELL ENTERPRISES LIMITED 2.1%1,7% WAKEMAN ENTERPRISES LIMITED 2.1%2,8% TELERUS LIMITED1.4%0,9% PJSC "RTK-Lizing"1.1%1,4% Other stockholders20.3%12.3%

6. 6 VolgaTelecom Share Price dynamics VolgaTelecom Historical Market Cap. Dividend History, USD 2002 dividend yields - 4% for prefs and 1% for commons** We will pay 10% of net profit for common shares and 10% for preferred shares going forward Volga Telecom Dividend Policy The announcement of the swap ratios The consolidation of regional operators in Volga region is finalized $ * - USD85 mln Market Cap is capitalization of NizhegorodSvyazinform prior to consolidation ** - calculated based on share prices as of 03.09.2003

7. 7 RAS, US$ mln IAS US$ mln Change, % Revenues349,9 421.1 20.3 Operating Expenses248,7 347.7 39.7 Operating Profit101,1 73.5 -27.4 Profit Before Tax63,4 72.3 14.0 Net Income46,9 29.2 -37.8 EBITDA133,2 134. 3 0.8 EBITDA Margin, %38% 32% Property, Plant & Equipment390 525,6 545 161.6 39.6 Long- & Short-term Debt (excluding liabilities) 41 350,6 80 247.3 94.1 Cash Flows From Operating Activity 126 016.6 Cash Flows From Investment Activity (110 311.4) Cash Flows From Financial Activity (8 909.6) VolgaTelecom 2002 IAS Financial Results & RAS Comparison

8. 8 The increase in revenues will be a result of: - An increase in local monthly tariffs by 25-30% - DLD and ILD tariff rebalancing - Growth in demand for phone installations (in 2003 we expect subscriber additions of 221,000) - Growth in DLD and ILD traffic (yearly growth in traffic is 20%) - An increasing share of revenues from new services in total revenues (including mobile, internet, IP-Telephony, Intellectual network) Revenues Breakdown

9. 9 Room to increase profitability via: - Optimization of personal numbers - An increase in the level of digitalization will allow us to decrease maintenance costs - A decrease in SG&A expenses due to ongoing corporate restructuring Operating costs

10. 10 Long- distance traffic trends Th. minutes 1 355 076 1 640 278 1 917 417 Unsatisfied application for installation of phone sets 913.8 764.7 545.7 The basic telephone sets 166.5 200.3 221.7 Investments per line installation$ 250 Investments on upgrade of analogue line to digital$ 170 E E E Th.

11. 11 Network expansion E

12. 12 Affiliated and dependent enterprises of telecommunications branches at least partially owned by OJSC «VolgaTelecom» at least partially owned by OJSC «VolgaTelecom» (holds more than 10% of the ownership capital) VolgaTelecom mobile exposure

13. 13 Nizhnii Novgorod Mobile ARPU, SAC, $ Revenue, $ th GSМ900\1800 Standard 50% of the mobile market in Nizhniy Novgorod region One of largest mobile operators in Russia ( 7th place according to AC&M Consulting ) Number of cellular subscribers, th I E E E

14. 14 Development of means of communications within the overall plan of technical upgrade of the network Increase of the installed capacity of the network: 2002 – 4 237 000 numbers; 2003 – 4 455 000 numbers Increase utilization level of the network 2002 – 91,5%; 2003 – 92,1%. Increase network digitalization 2002 – 40,8%; 2003 – 46,2% through installation of the new lines 2002 – 400 thousand; 2003 – 420 thousand. Increase digitalization level of the intra-regional network through building fiber optic lines, RRL, SDH. The company is building its future relaying on:

15. 15 Development of new profitable services Development of the mobile business. The mobile assets are been evaluated currently and we are considering re-organisation of the business including possibility of creating a united Volga region mobile operator. Enlarging the Internet related services (access, dedicated channels, xDSL), with the aim of increasing market share through the complex of marketing events. Creation of the inter-regional multiservice network using the existing networks of the regional subsidiaries. Creation and development of the intelligent networks (already working in Nizhniy Novgorod). Focus will be on informational services and the IP-telephony. The company is building its future relaying on:

16. 16 Realizing Marketing Potential Marketing plans and actions are carried through the framework of united marketing concept of the company. Preserving leadership in the local and long-distance communications market in the Volga region Increasing the share in the profitable segments of the market through packaging services for the business-users in the whole Volga region Improving the quality of services for the mass market. Personalized services to the business-users. The company already operates service-centers and VIP-centers developing complex packaged services in the traditional fixed-line and new hi-tech areas. The company is building its future relaying on:

17. 17 Increasing the investment attractiveness Joint PR and IR programs aimed at increasing the informational transparency of the company Improvement of the free float and liquidity of shares. Listing of shares at different bourses Increase of the credit ratings (rated currently «B», with “Stable” forecast*) and corporate governance ratings (5,8 points * ) (according to «Standard and Poor’s») Introduction of the norms/codex of corporate governance The company is building its future relaying on:

18. 18 The company is building its future relaying on: Investment Policies Introduction of investment planning. Focus on priority tasks and directions (upgrade of the telephone lines, introduction of new services). Lowering the cost of investments through common purchasing schemes. Personnel Policies Optimization of headcount through corporate restructuring and modernization of the telephone lines Creating a pool of reliable personnel cadre through upgrading the professional level of employees