Krasnodar, August 22, 2005– Southern Telecommunications Company (“UTK”)(RTS:KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal telecommunicationsprovider for Russia’s Southern Federal District, reports that the RF Federal Tariff Service has established new tariffs for the local and national telephone services in Adygeia Republic, Kabardino-Balkarian Republic, Kalmykia Republic, Karachaevo-Circassian Republic, Severnaya Osetia - Alania Republic, Astrakhan Region, Volgograd Region, Krasnodar Kray, Rostov Region, Stavropol Kray (Orders of the FTS CEO ?376-s/10 and ?375-s/9 ?f August 17, 2005), with effect from September 1, 2005. Average subscriber monthly fee will be increased by 20.2% for individuals and by 15.3% - for business sector.

UTK’s national long-distance tariffs for individuals and legal entities will be reduced by average 4.1%. National long-distance tariffs for all categories of customers and all tariff zones will be reduced in UTK branches " Svyazinfrom " of the Astrakhan region”, “Volgogradelectrosvyaz”, “Kubanelectrosvyaz”, “Rostovelectrosvyaz” and “Electrosvyaz” of Stavropol Territory". National long-distance tariffs for tariff zones 3, 5, 6 and 7 will be reduced in UTK’s branches “Electrosvyaz of Adygeia Republic”, “KabBalktelecom”, “Karachaevo-Cherkesskelectrosvyaz”, "Electrosvyaz of Kalmykia Republic", “Sevosetinelectrosvyaz”.

Local tariffs (monthly subscriber fee) effective from September 1, 2005, rubles per month

Local tariffs (time-based billing system) effective from September 1, 2005, rubles per month

For any further information please contact:

UTK IR Team

phone + 7 861 253 20 30, fax + 7 861 253 19 69, e-mail: pmaleev@mail.stcompany.ru

UTK PR Team

phone + 7 861 259 56 99, fax + 7 861 259 56 99, e-mail:dali@mail.stcompany.ru