Krasnodar, 16 March 2006 – Southern Telecommunications Company (“UTK”) (RTS: KUBN; OTC: STJSY), the principal telecommunications provider for Russia’s Southern Federal District, reports that on 16th March 2006 the Company paid out in full the fifth coupon income under UTK series 01 bonds (UTK-01?b., ISIN RU0009071088). Under the Decision of the Company’s Board of Directors (Minutes N 19 dated 29 May 2003) total amount of the fifth coupon yield to be paid under all UTK series 01 bonds made 14.24% annual rate or 106,500, 000 (one hundred and six million five hundred thousand) rubles. The coupon income under one bond amounted to 71.00 (seventy-one) rubles. The cut-off date of the register of the holders of UTK series 01 bonds for the fifth coupon income payment was 7th March 2006. Payment agent of series 01 bond issue is NP "NDC".

Information about the bond issue:
Volume of the issue of UTK series 01 non-convertible interest-bearing  documentary pay-to-bearer bonds is RUR 1.5 billion, the term to maturity is 3 years (1,092 days) with half-year fixed coupon (182 days) and offer for the redemption – 1 year  from the date of placement at 100 % of the par value. The interest rate of 14.24% per annum on the  first coupon was fixed at the bond placement (September 18, 2003, MICEX). The interest rates on the second, third, fourth, fifth and sixth coupons are equal to the first coupon interest rate.  State registration number of the bond issue is 4-05-00062-A of August 15, 2003; trade codes are UTK-01ob., ISIN RU0009071088. Organizers are Promishlenno-stroitelniy bank, Renaissance Broker. Co–organizers of the bond issue are Bank "Zenit", MDM-Bank, Bank Ingosstrakh-Soyuz, Transcreditbank, Vneshtorgbank.  Renaissance Capital acts as Financial Consultant. Underwriter is CJSC "Management Company “Baltic Financial Agency".