Krasnodar, 16 June 2006 – Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal telecommunications provider for Russia’s Southern Federal District, reports that on 15th June 2006 the Company’s Board of Directors took a decision to release Georgy Romsky of his position of UTK’s General Director at his request for personal reasons and to appoint Alexander Andreev as CEO at "Southern Telecommunications Company" PJSC.

Chairman of UTK’s Board of Directors, First Deputy Director General of “Svyazinvest” OJSC Sergey Kuznetsov thanked Georgy Romsky for his work: «In a short time Georgy Romsky succeeded in solving the main tasks – stabilization of the Company’s financial and economic position and creation of conditions for its further progress. No doubt, Alexander Andreev, being an experienced executive and a truly professional, will continue this development strategy. He has been working in the telecommunications sector for about thirty years and has deserved authority with the professional community».

After the appointment Alexander Andreev, General Director of "UTK" PJSC said: «I consider it an honor to be at the head of "Southern Telecommunications Company" PJSC. I thank the Company’s shareholders and Board of Directors for their trust put in me. I see priorities in formation of management environment necessary for further stable development of the Company, active expansion and promotion of modern telecommunication services provided by "UTK" PJSC and enhancement of the Company’s investment appeal».

Alexander Andreev was born on 3 February 1954. In 1977 he graduated from the Bonch-Bruevich Leningrad Electrotechnical University as a telecommunications engineer. Till 2002 he was General Director  of OJSC “Electrosvyaz” of the Kaliningrad region, since 2002 – Regional Director – Director of the Kaliningrad branch of “North-Western Telecom” OJSC. Alexander Andreev holds an honorary title “ Master of Telecommunications”.