Key Business Objectives

1. Key Business Objectives North-West Telecom April 2005

2. NWT today The leading integrated telecom provider in the North-Western Federal District • 10 regional branches • 4, 5 mln. subscribers • 34 ths employees • Revenue 2004530 MUSD • Revenue 2005F 680 MUSD NWFD is a large market with significant investment potential NWFD has the 3rd largest per capita income level among Russian regions NWT is characterized by the highest telephone density (30 telephone sets/100 inhabitants) in Russia 2

3. International ratings S&P Transparency Indexof North-West Telecomgrew to 62% from 44% in 2003 It is the 8th among 50 largest Russian companies 3

4. 2.4 2002 Share capital structure PREFERRED SHARES ORDINARY SHARES Net profit distrubuted as dividends, MUSD +172% +79% 11.7 4.3 2003 2004 % Net Profit 23% 16% 24% (прогноз) • According to our estimations, foreign investors own 30% of ordinary shares • 4.4% of ordinary shares is converted into ADR 1st Level and are traded in the USA Over-The-Counter market (NWTEY), Berlin- & Frankfurt Stock Exchange • Free float is estimated as 23% 4

5. Share & Bond market • In 2004 NWT was the leader in capitalization growth among Russian Regional Telecom Operators • Price of ordinary shares increased by 29% • Price of preferred shares increased by 42% • Trade volume of ordinary shares grew by 93% • Trade volume of preferred shares grew by 113% 5

6. Share & Bond market • Capitalization of the company grew 2.5 times since merger in November 2001 6

7. Share & Bond market • According to the latest researches, upside potential of ordinary shares is 44%, preferred shares – 80% 7

8. Volume, MUSD Yield 2002 10 20.8% 2003 50 14.4% 2005 110 9.58% Share & Bond market • The 3rd corporate bond issue was placed on March 3rd, 2005. • The issue was 2.5 times oversubscribed. • Significant demand originated from foreign investors. NWT Corporate bonds track record 8

9. Key business objectives • Develop share and corporate bond markets • Strengthen market position in corporate and Value Added Services (VAS)segments • Improve financial performance • Develop sound long-term corporate strategy 9

10. Developing share and bond markets • Strategic Goals • Raise investment attractiveness & securities liquidity • Implement corporate governance approach fit to requirements of International Investment Banking professionals • Improve reputation management quality • Planned in 2005 • Issue of Level I ADRs for preferred shares • Developing ADR trading on European stock markets (Frankfurt & Berlin Stock Exchanges) 10

11. Local access73 % DLD & ILD65 % Data transmission & channels leasing65 % Documentary communication34 % Strengthening market position in corporate and VAS segments Regional Market Share – 27% by revenues NWT has strong positions in both retail and infrastructure segments Market shares in corporate (26%) and VAS (34%) segments are to be improved 11

12. Strengthening market position in corporate and VAS segments Revenue from VAS, MUSD +38.7% 33.7 Internet access Data transmission Next Generation network services Intellectual network services +69.9% 24.3 14.3 2003 2004 2005 forecast 12

13. Improving financial performance Financial Highlights, RAS MUSD Financial statement (IAS) is available: www.nwtelecom.ru(Language:English)> Economic and Finance >Financial statement (according to Ineternational Accounting standards), Balance sheets http://www.nwtelecom.ru/pubsas/test--C7740C6ECBAA11D5AE4B0050045260BB/lang--eng/index.html

14. Average subscriber fee, USD Long-distance traffic, mln. min 10 2500 8 6.9 2,015 5.7 2000 +21% 6 +27% 4.3 1,593 +33% 1,365 4 1500 +17% 2 2003 2004 2005 1000 forecast 2003 2004 2005 Improving financial performance 2004 Revenue growth drivers Organic growth (24%) forecast Non-Organic growth (9%) • Consolidation of Lensvyaz and Svyaz Komi as of October 1, 2004 14 10

15. +27% Improving financialperformance Revenue Structure 2004 2005 (forecast) 676 MUSD 533 MUSD 676 MUSD 15

16. 8% Improving financial performance Cost Structure 2004 2005 (forecast) 543 MUSD 502 MUSD 16

17. 37,012 420 34,735 40,000 450 35,000 375 30,000 367 34,030 300 25,000 262 225 20,000 15,000 150 10,000 75 5,000 0 0 2003 2004 2005 forecast Average number of personnel Improving financialperformance Personnel optimization Personnel,people Wage, USD Key factors influencing number of personnel: Improving organization structure Implementation of business-units structure Network modernization Between 2001 and 2003 personnel was reduced by 13% Average monthly wage 17

18. Improving financialperformance 130.8 CAPEX, MUSD + 29% 168.1 In 2005, subscriber base will increase by 149 ths numbers Digitalization rate will raise from 48% to 52% 10 MUSD will be invested in VAS 2004 2005 (forecast) 18

19. +25% Improving financialperformance 305MUSD Funding In 2005 financial debt will increase by 70 MUSD to 305 MUSD 2005 funding program is aimed to refinance short-term debts and includes the following: 3rd corporate bond issue (issued on March 3rd ; volume 100 MUSD; maturity 6 years) Long-term bank credits (75 MUSD) 246.4 MUSD 2004 2005 (forecast) 19

20. 2004 2005 forecast 2003 Average RTOs 2004 2003 2005 forecast Average RTOs Improving financialperformance Current ratio Equity to total assets ratio 0.80 0.61 0.72 0.55 20

21. Developing sound long-term corporate strategy • Strengthen achieved market positions & expand to new market segments • Improve company’s economic efficiency • Modernize network infrastructure • Introduce highly efficient management systems and procedures Create a strong basis for growth of company’s capitalization 21

22. North-West Telecom Chairman of Board of Directors ………………..……. Valeriy Yashin Chief Executive Officer ………………….…….……..Vladimir Akulich Аuditor ……………………………………….………………….Ernst & Young Registrar ………………………………………….………Registrator-Svyaz ADR Depositary …………………………………………..………..JP Morgan URL………………………..…………………….…….www.nwtelecom.ru • Contacts: • Gorokhovaya str.14/26, St.Petersburg, Russia • +7(812) 595-45-64 E.Tomilina@nwtelecom.ru 22

23. Thank you for your attention!