Krasnodar, June 30, 2005:  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 June 30, 2005 the Company’s Annual General Shareholders' Meeting (AGM) was held in its Krasnodar central office.

The AGM approved the Company’s annual report, annual financial accounts including income statement and distribution of profits and losses on the basis of the reported fiscal year 2004 financial results.

The AGM adopted the decision to pay the following 2004 dividend:

- preference share dividend amounting to 0.02847 ruble per one share. The dividend should be paid in cash prior to August 29, 2005;

- ordinary share dividend amounting to 0.00934 ruble per one share. The dividend should be paid in cash prior to December 15, 2005.

The annual General Shareholders' Meeting elected a new membership of the Company’s Board of Directors, 11 directors in number. The following persons were elected to the UTK Board of Directors:

• Konstantin Vladimirovich Belyaev, Deputy Director General, “Svyazinvest” OJSC
• Mikhail Borisovich Vasilyev - Head of the Representative Office of “NCH Advisors Inc.”
• Valentina Fyodorovna Veremianina, Head of Legal Section, “Svyazinvest” OJSC
• Anatoly Anatolievich Gavrilenko, Director General, “Leader” CJSC
• Elena Viktorovna Zabuzova, Director of Economic Planning and  Budgeting Department, “Svyazinvest” OJSC
• Denis Viktorovich Kulikov – Expert, Investor Protection Association (non-commercial organization)
• Sergei Ivanovich Kuznetsov, Primary Deputy Director General, “Svyazinvest” OJSC
• Stanislav Nikolaevich Panchenko - Deputy General Director, “Svyazinvest” OJSC.
• Georgy Alekseevich Romsky – Director General, "UTK" PJSC   
• Eugheny Aleksandrovich Chechelnitsky – Deputy head of the Federal Supervision Service in Telecommunications 
• Vladimir Pavlovich Yuriev - Head of Economy, Finance and Public Property Board of the Federal Communication Agency 

The Auditing Commission of "UTK" PJSC was elected 5 persons in number. The following persons were elected to the UTK Auditing Commission:

• Elena Vladimirovna Umnova – Director of Finance Department, “Svyazinvest” PJSC
• Vyacheslav Yurievich Charkovsky – Senior specialist of the Taxation section of the Accounting Department, “Svyazinvest” OJSC      
• Gennadiy Ivanovich Kovalenko – Head of the section of the Legal Department, “Svyazinvest” OJSC
• Tamara Alekseevna Chernikova – Head of the Securities section of the Finance Department, “Svyazinvest” OJSC
• Dmitriy Anatolievich Loshakov – Chief specialist of the Investment projects section of the Economic Planning and Budgeting Department, “Svyazinvest” OJSC.

CJSC “Ernst and Young Vneshaudit” was appointed the Company’s external auditor for the year 2005. 

The AGM determined the rates of deductions (percent) for calculation of the size of annual remuneration to be paid to the members of the Board of Directors elected by this Meeting.

The annual General Shareholders' Meeting approved the resolution to introduce the amendments and additions into the Company’s Charter and the Provisions on the Board of Directors as well as to introduce the amendments into the Regulations on the procedure for conducting a General Shareholders’ Meeting.

According to the Plan of reorganization of the Company’s associated businesses approved by the Board of Directors, the AGM considered it expedient to cease the Company’s participation in the following legal entities being non-commercial organizations

· Association of Telecom Companies of the Volga Region,

· Iskra Association  of Federal Business Service Network Operators,

· Union of communication equipment manufacturers and consumers.

Shareholder materials for the AGM can be accessed in the section “Investor Relations” of the corporate website. Minutes of the annual General Shareholders' Meeting will be placed in the same section of the corporate website prior to 5 July 2004.

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

Southern Telecommunications Company PJSC, or UTK, is the principal provider of fixed line telecommunications for Russia’s Southern Federal District, a region covering 520 ths sq km with population of 18.7 million people. "UTK" PJSC  provides various telecom services of local and long-distance telephony, broad range of value-added services (VAS) (services of Internet, IP-telephony, ISDN, VPN, CTV and others).  Total revenue of "UTK" PJSC for the year 2004 is up 24% to RUR 16.8 bln, EBITDA is up 25%  to RUR 4.3  bln (RAS). Number of basic telephone sets operated by "UTK" PJSC makes 4 million units. During 2004 UTK increased its market share of local fixed- line services  to 83%, value-added services – to 44%.

UTK is a subsidiary of Svyazinvest holding which owns 38% of the Company’s authorized capital. UTK shares are traded in the Classic Market of NP “RTS SE” (KUBN; KUBNP), OJSC “RTS” (KUBNG; KUBNPG)), in   the stock section of the Moscow Interbank Currency Exchange (MICEX) (UTEL; UTELP). One unit of American Depositary Receipt of "UTK" PJSC  represents 50 common shares of the Company. UTK ADRs are traded in the US over-the-counter market (STJSY), and quoted in the over-the counter market of Frankfort and Berlin Stock Exchanges (KUE) and NEWEX (KUE).

Additional information about the Company  can be accessed on the website atwww.stcompany.ru, in the Information Disclosure System  SKRIN Issuer, in KUBN_RU of the systems Bloomberg and Reuters as well as on the web-portal Rustocks.com.