Krasnodar, 6th December 2006: Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; ?ICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports that it has become a winner in the nomination “2006 Best Issuer on the MidCap market (among companies of middle capitalization level)» due to great success in application of debt market instruments.

Experts of the magazine “Equity Market” carried out analysis of the companies with capitalization up to 1 billion US dollars on the basis of the following criteria: liquidity level of bonds, trading volume on the RTS Stock exchange, corporate governance level and confidence of investors.

"UTK" PJSC was awarded a prize at the practical conference «Bond issue as an effective instrument to attract funds for implementation of investment projects» held by the Department for Financial and Stock Markets of the Krasnodar kray Government.

Officials of the Krasnodar kray Government and the Department for financial and stock markets as well as representatives of national financial and investment companies such as: IFK "Solid", IFK "Antanta-capital", OJSC "Uralsib bank", OJSC "Krayinvestbank", OJSC ABK "Soyuz" took part in the conference. "Southern Telecommunications Company" PJSC made the presentation «Bond issue is an effective instrument for diversification of a company’s debt portfolio».