Krasnodar, November 22, 2006: Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports that on 21st November 2006 Standard & Poors Governance Services raised its corporate governance score (CGS) on Southern Telecommunications Company to CGS-4+ from CGS-4.

At the same time, Standard & Poors raised its Russia national scale CGS on the company toCGS-4.8 from CGS-4.4. The upgrade primarily reflects the increased effectiveness of the Company’s Board of Directors due to more focused oversight by the controlling shareholder, Svyazinvest.

The overall CGS on UTK is the result of four component scores on the global and Russia national scales of 1 (low) to 10 (high).

• Ownership structure and external influences – 4+/4.8
• Shareholder rights and stakeholder relations – 6+/6.6
• Transparency, disclosure, and audit - 5/5.0
• Board structure and effectiveness - 4/4.2