1. 1 September, 2004 2003 IAS Results

2. Inter-Regional Telecommunication Company “VolgaTelecom” VolgaTelecom offers: Traditional telecommunication services: Local (city and rural) telephony DLD, ILD Radio and TV broadcasting Value-added services: Internet and data transmission ISDN IP-telephony Intelligent communication network services Mobile communication Paging Fixed-line penetration - VolgaTelecom license area Territory – 665,000 sq.km Population – 21 million Urban penetration 2003 - 25.6% Market share, % 87 80 50 70 29

3. 3 Charter capital – USD 55.7 mln Nominal share value – USD 0.17 Charter capital Ordinary shares 75% (incl. 13% ADRs) Preferred shares 25% Capitalization growth Dividend yield (2003) – 1.7% for ordinary and 6.9% for preferred stocks Payout ratio on ordinary and preferred stock – 10% on both Dividend policy, $ Ratings of international rating agency «Standard & Poor’s» Corporate Governance Rating (CGR) – 5+ Corporate Governance Rating (CGR) – 5+ By Russian scale – 5.9 By Russian scale – 5.9 Credit rating – «В», forecast «stable» Credit rating – «В», forecast «stable» By Russian scale – «ru A», forecast «stable» By Russian scale – «ru A», forecast «stable» $ m

4. 4 Financial Highlights (IAS) US$, millionRate of growth, % 20022003 Revenues420.46546.2929.9 Operating Expenses341.84435.6827.5 Operating Profit78.62110.6140.7 Profit Before Tax72.2397.6535.2 Net Income29.1458.39100.4 Net Margin %711 EBITDA134.83173.7928.9 EBITDA Margin, %32 Property, Plant & Equipment544.82725.1933.1 Long- & Short-term Debt (excluding liabilities) 70.10155.41121.7 Cash Flows From Operating Activity127.66148.4616.3 Cash Flows From Investment Activity110.25171.1155.2 Cash Flows From Financial Activity8.9028.31218.3 * The indicators were calculated by the rates: 1$=200220031$=20022003 Ruble’s average rate31,430,7The rate as of 31.12., ruble31,830,0

5. 5 VolgaTelecom plans to increase revenues through: Increasing the number of fixed-line subscribers (in 2004, net adds are expected to hit 250,000) Raising VAS revenues (mobile, Internet, IP- telephony, multi-service networks, etc.) Increasing the cellular subscriber base in 2004 from 857,000 in 2003 to 1,200,000 Expanding DLD and ILD traffic (which annually grows at around 21%) Revenue structure

6. 6 Expenses can be streamlined through: - Rationalizing personnel - Raising digitalization, which helps reduce maintenance costs - Cutting G&A expenses as a result of corporate restructuring - Switching over from wire broadcasting to on- air broadcasting; communication lines modernization Breakdown of expenses

7. 7 913.8 764.7 545.7 Net additions 166.5 221.7 546 765 345 914 Waiting list Share of local communication in the Company’s total revenues 20022003 32.9%32.8% Wireline network development ‘000 lines %

8. 8 Since August, 2003 OJSC “VolgaTelecom” switched over to a new system of settlements with OJSC “Rostelecom”; in accordance with this system the integral settlement rate was disclosed. 1,274 1,9201,5722,324 Number of automatic LD exchanges – 12 Installed capacity – 51,145 channels Digitalization – 94.1% Total length of channels – 15.2 m channels-km Length of intra-zone lines – 21,300 km m min Traffic growth DLD and ILD services Share of DLD and international traffic in the Company’s total revenues 20022003 39.4%38.9%

9. 9 Value-added services: Value-added services: Internet ISDN IP-telephony Intelligent communication network Revenue growth of value-added services $ m Number of Internet subscribers ‘000 Value-added services Share of revenues of value- added services in the Company’s total proceeds 20022003 1.7%2.64%

10. 10 Market share, % 20022003 2004 Е 352928 ARPU, $ 241411 $ m Subscribers ‘000 Share of revenues of cellular business in the Company’s total proceeds 20022003 10.8%12.3% Cellular business OJSC “VolgaTelecom” major cellular assets (the data as of August 2004) Financial indicators (IAS)

11. 11 Growth of capital investments (IAS) 545.7 55% Investment policy Allocation of capital investments in 2003 The cost of a new line installation, USD 275 The cost of modernization of an analog line, USD 190 Capacity growth, ‘000 lines $ m

12. 12 Thank you for your attention! JSC “VolgaTelecom” 603000 Russia, Nizhny Novgorod, Maksim Gorky sq., Dom Sviazi Tel.: +7 (8312) 33-20-47; Fax: +7 (8312) 30-67-68 E-mail: tn@sinn.rutn@sinn.ru http://www.volgatelecom.ru