1

RTS: ESPK MICEX: DLSV

ADR: FEEOY

Investor Relations

Presentation for Analysts and Investors Group of

Brunswick UBS

Chief Executive Officer Far East Telecommunications

Company Anton A. Alexeev

May 26, 2005

2

Investor Relations

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.

All the financial results, included in this presentation, were accounted according to Russian Accounting Standards. 2004 results are audited and comparable.

3

Investor Relations

Far East Federal District

2004 Performance Review

Financial Results for 2002 – 2004

Technical Results for 2002 – 2004

Plans and guidance for 2005

FETEC at the capital markets

Q&A

Contents

4

Investor Relations

FETEC is the leader of the Far East Telecommunications market;

FETEC provides services in 7 regions of the Russian Far East.

The largest region of the Russian Federation;

Borders on North Korea, North America, China, Japan;

Territory of 3.3 million square km (which is 9 times more than territory of Germany).

The number of inhabitants – 6.1 mln. people – 4.2% of total Russian number. 4,8 mln. (80%) of them are urban citizens;

Region of rending services

Russian Far East Federal District

5

The Leader at Russian Far East Telecommunications Market

Market share at the served region is 51%:

Investor Relations

85% - local telephone services

89,5% - long distance domestic and international communications

60% - the Internet

27% - cellular communications (in Kamchatka and Magadan regions)

Results for 2004

6

Financial Highlights of 2004

Strong Y-o-Y Financial Results Growth (compared to 2003)

Revenue growth – 30.6% (the highest in the industry)Net income from operating growth – 66.4% (the highest in the industry)Net income (including income from assets sale) increased by 6 timesEBITDA increased by 90% EBITDA (including income from assets sale) increased by 3.5 timesThe level of digitalization (upgrading) is 61.7%Operated net capacity increased by 10% (or 115,7 thousand subscribers)Average staff number increased by 1.8% (341 people)

Revenues increased to : cellular – by 73,6% to 332 million rub. new services – by 61% to 524 million rub.local telephone services – by 30,6% to 3,2 billion rub.long distance domestic and international communications – by 10% to 3,2 billion rub.

Investor Relations

7

The Highest Revenue Growth Rate in the Industry

5.3

6.8

8.9

2002 2003 2004

+28.4%

+30.6%

Revenue (billion rub.)

Revenue increase by 30.6% in 2004 was primary driven by sale increase of 1 825,1 million rub. and increasing tariff income of 227,9 million rub.

Investor Relations

Results for 2004

8

Revenue Structure by Types of Services

30.5%

6 726 million rub. 8 779 million rub.

2003 2004

Growth

43%

Local Telephone Services

36%

2%

10%

4%5%

Long distance communications

Local Telephone Services

38%

Document ServicesNew Services

Wireless, Cellular Services

Others9%

4%

6%2%

41%

Investor Relations

Document ServicesNew Services

Wireless, Cellular Services

Others

Long distance communications

Results for 2004

9

Expenditures from operating (million rub.)

2003 2004

Others expenditures

Expenditures from other companies services

Expenditures from OJSC Rostelecom

Expenditures from other telecom operators (except operators of the Group)

Electricity charges

Material Expenditures

Amortization and depreciation

Expenditures for social Insurance

Staff wages and Salaries

5 928

7 751

Investor Relations

Results for 2004

2 9412 353

671

812,2

627

315

480

385

143,1

127

314

244

823

1 192,1

481

535,3

529

706,3

10

The Highest Net Income Growth Rate in the Industry

304,3

182,8

133

2002 2003 2004

Net Income from operating (million rub.)

+37.4%

+66.4%1 114

182,8133

2002 2003 2004

Net income, including income from assets sale (million rub.)

+37.4%

+526%

Investor Relations

Results for 2004

11

Strong growth of the efficiency

Revenue per line (thousand rub.)

Revenue per worker (thousand rub.)

2002 2003 2004

5,0

7,46,1

277

492

375

2002 2003 2004

+21.4%

+20.6%

+35.4%

+31.2%

Revenue per line increased by 20.6% through revenue increase by 30.6%, and the network capacity put into operation increased by 10,2%.

Revenue per worker increased by 31.2% through both revenue increase by 30,6% and decrease of average staff number by 0,5%.

Investor Relations

12

Triple EBITDA growth

EBITDA (million rub)

2002 2003 2004

623

2 431

698

EBITDA* increased by 90% to 1.3 billion rub.

EBITDA (including income from assets selling) increased by 3.5 times to 2,4 billion rub.

EBITDA growth was primary driven by income before taxes up 510% (+ 1.3 billion rub), amortization and depreciation up 200% ( + 312 million rub.), and interests up 300% (+121 million rub.).

EBITDA margin increased by 2.7 times to 27% (in 2003 - 10%).

+12%

+248.4%

* EBITDA is calculated as income before taxes + amortization and depreciation + interests (%).

Investor Relations

1 326

+90%

13

130% revenue increase from local telephone services

Revenues from local telephone services (million rub.) FETEC provides services in 7

regions of the Russian Far East.

There are 6.1 million people live in the Far East, 80% of them live in the cities.

Far East telecommunications market is still far from satiation. Telephone density at the end of 2004 was 24%. (20.5% in 2003).

1 9732 421

3 166

2002 2003 2004

+22.7%

+30.8%

Local telephone services revenue increase was driven by subscribers number increase (+115,7 thousand) and by average tariff increase by 16.5%.

Investor Relations

14

Revenue from long distance domestic and international communications (million rub.)

Revenue growth from long distance communications

2 503

2 9123 197

2002 2003 2004

Long distance domestic and international communications revenue increased by 9,8% because of 12% growth of outgoing traffic.

628 916

561 380

457 550

2002 2003 2004

Long distance traffic growth (thousand minutes)

+16.4%

+9.8%

+22.7%

+12%

Investor Relations

15

161% revenue growth from new services

Revenue from new services and data transmission (million rub.)

2002 2003 2004

115 364126 518

45 268

2002 2003 2004

Internet (dial up) users number

213 304

485,4

39,1

20,9217

325

524.5

Other new services (ISDN, IP-telephony, Data transmission)

DSL users number

1 465

7 915

2003 2004

4

Internet (dial-up, DSL)+49.8%

+61.4%

+154.9%

+9.7%

+440%

Investor Relations

16

Strong new services traffic growth

2002 2003 2004

The Internet traffic volume (thousand minutes)

3 880

2 224

2003 2004

IP-telephony communications (thousand minutes)

2002 2003 2004

The Internet traffic volume (Gbytes)

+74.4%

+35%

72 87198 375

+55.8%153 228

+89,4%

+49,7%

335 386

635 219

950 996

Investor Relations

17

174% revenue growth from cellular services

191 131

332

2002 2003 2004

Revenues from cellular services (million rub.)

FETEC provides cellular services in two regions of the Far East: Kamchatka region (GSM-900/1800) and Magadan Region (GSM-900).

11 7159 480

30 779

Number of cellular subscribers

2002 2003 2004

+45.8%

+73.8%

+23.6%

+162.7%

Investor Relations

18

Staff number decrease of 1.8%

20 073

18 968

18 627

2002 2003 2004

Average staff number, including outside deputies and workers, who work under the

contracts (people)FETEC pursues the policy of staff optimization.

In 2004 staff number decreased by 1.8% (341 people) compared to 2003. - 5.5%

- 1.8%

Investor Relations

19

Capital Expenditures

2002 2003 2004

Capital Expenditures (million rub.)

816

2 012

3 107

+146.7%

+54.4%

Investor Relations

The main priorities of FETEC investment program in 2004 were net expansion and upgrading, increasing of extension intraband optical lines of transmission, new communication and informational

technology inculcation.

20

Installed net capacity

Operated net capacity

Strong increase of the net capacity

2002 2003 2004

1 191

1 331

1 508

1 087 1 143 1 259

Dynamics of the network capacity growth (thousand numbers)

Installed net capacity increased by 13% compared to 2003.

Operated net capacity increased by 10% compared to 2003.

Quantity of telephone devices increased 115 702 numbers.

Coefficient of installed 2002 2003 2004 network operating % 91,25 85,9 83,5

+11.7%

+5.1%

+13.3%

+10.2%

Investor Relations

21

Level of the net digitalization (upgrading) 61.7%

38.7

48.3

61.7

2002 2003 2004

Electronic automatic exchanges share in the installed net (%)

Investor Relations

22

The structure of installed net capacity

11%4%

3%

44%38%

31%

39%48%

62%

14% 3%

3%

2002 2003 2004

1 191 1 331 1 508+11,7% +13,3%

Investor Relations

Installed net capacity (thousand numbers)

Ten-step Switchboards

Digital Switchboards

Coordinate Switchboards

Quasi-digital Switchboards

23

Strengthening of competitive

positions

Increasing of Efficiency

Net Expansion and Modernization

(upgrading)

Active developing of the new services

Holding the leading position on the Far East

Revenues and tariffs growth maintaining

Expenditures optimization and their growth rate decreasing

Staff number decreasing

Low profitability assets selling

Corporate governance efficiency increasing

Subscribers quantity increasing (operated net capacity increasing)

Optical network expansion

Net carrying capacity expansion

Net digitalization (upgrading) increasing

The main FETEC goals in 2005

Investor Relations

24

Market share forecast

4.15.3

6.88.9

10.312.2

2001 2002 2003 2004 2005 2006

8.3

10.6

11.4

17.8

20.6

24.4Growth by 3 times

Investor Relations

FETEC market share at the Far East Telecommunications Market

2001- 2006 (billion rub.)*

In 2006 telecommunications market is estimated to grow by 3 times compared to 2001 or by 37% compared to 2004.

The main factors of market growth:

dissatisfied demand for traditional telecommunications services (telephone density is 24%);

regional economy growth;

demand increasing for the alternative services;

Forecast for FETEC market share in 2005 – 50%;

Local telephone services – 84%;

Zonal telephone services – 100%

Internet – 63%

Cellular services – 24%*

*Of Kamchatka and Magadan Regions*Company’s forecast

25

Financial Guidance for 2005

8,9

10,3+15%

Revenue (Billion rub.)

2004 г. 2005 г.

Net Income from operation (million rub.)

+18%

2004 г. 2005 г.

304,2

360

Capital Expenditures (billion rub.)

2004 г. 2005 г.

2,1-43,5%

3,1

Investor Relations

26

40%38%

38%41%

9%6%4%4%

2%2%7%9%

2004 2005

8,9 10,3

FETEC revenues by types of services (billion rub.)

Revenue share from new services will increase to 9%

Investor Relations

Others

Document services

Wireless, cellular Services

New Services*

Long distance services

Local telephone services

*New services - the Internet (dial-up, DSL, ISDN), IP- telephony, data transmission

27

1,15

2,17

1,62

1,75

1,88

1,12

1,29

1,26

1,49

38,13

4,93

4,93

36,86

1,42

ОАО «Связьинвест»

Red Hand Investments Limited

Lindsell Enterprices Ltd.

Livart Investments Corp.

RCL Investments, Inc

Stotter Limited

The Bank of New York

Fenway Services Limited

J.P.Morgan Chase Bank

Maydenvale Ventures Ltd.M

Makssvit Ltd.

Floveliniya Ltd.

Hagstroemer&QvibergFondkommission AB

Прочие

Shareowner capital structure (April 26, 2004)

Investor Relations

28

FETEC Shares at RTS (list «B»)

QUOTES May 18, 2005

Common shares Ticker: ESPK Face value 20 rub. Shares outstanding 95 581 42 52 weeks max. price $1.5 52 weeks min. price $0.89 WA price $1.2

Preferred shares Ticker: ESPKP Face value 20 rub. Shares outstanding 31168 901 52 weeks max. price $1.37 52 weeks min. price $0.76 WA price $1.14

Volume of shares trading at RTS in 2004 году increased by 2.3 times to 19 million.

USD.

Volume of common shares trading at RTS (2003 – 2005)

Investor Relations

ESPK

2003 2004 2005

$

FETEC shares are also traded at MICEX in the list “B”. Ticker: DLSV, DLSVP

+89%

29

FETEC ADR at OTC Market

FEEOY

Investor Relations

Dalsvyaz is implementing ADR program of 1 level (Pink Sheets) since 2002.

Transfer agent is

Bank custodian is ING Bank – www.ing.com

The trading is on Over the counter market.

1 ADR is equal 30 common shares of Dalsvyaz OJSC.

The amount of shares outstanding is 1 274 418 units.

The company issued financial results accordingly IAS since 2002 – www.dsv.ru the IR section.

For more information visit www.adr.com

25

27,5

Price for last 52 weeks

max

min

30

Market cap growth

Market capitalization, December 31, 2003 – April 30, 2005

(RTS)

At the end of 2004 FETEC market cap increased to $133,7 million, but at the end of April 2005 it increased by 30% compared to 2004 and reached $173 million.

Investor Relations

020406080

100120140160180200

31.1

2.20

03

29.0

2.20

04

30.0

4.20

04

30.0

6.20

04

31.0

8.20

04

31.1

0.20

04

31.1

2.20

04

28.0

2.20

05

30.0

4.20

05

milli

on U

SD

$ 173 million.

31

Dividend growth

Dividends (rub.)

0,31 0,4

1,2

0,580,73

3,62

2002 2003 2004

(recommended)

Investor Relations

Common shares

Preferred shares

32

B - B -

B

5,35,8

(+5)4,8

(+4)

0

1

2

3

4

5

6

7

8

9

10

July 1, 2003 June 24,2004

December28, 2004г

International ratings

Investor Relations

2002 2003 2004

Credit rating – Fitch Ratings Corporate governance rating Standard & Poors

33

Thank you for attention!

Investor Relations

Questions?

Investor Relations DepartmentFETEC OJSC

57 Svetlanskaya St., Vladivostok,690590 Russia

Тel.: +7(4232) 208-500, ext. 1306IR@dsv.ru

www.dsv.ru