Krasnodar, 10 April 2008 – Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; ?ICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports that on 9th April 2008 the Company paid out the seventh coupon yield on UTK series 03 bonds (UTK-03?b., ISIN RU000A0DD202) in full.

The amount of the seventh coupon yield to be paid on 03 series 03 bonds was calculated on the basis of a 9% annual rate set by the Order of the Company’s General Director ?000243 of September 20, 2007 totaling 157,920,000 rubles. The seventh coupon yield of 45 rubles 12 kopecks was paid out on each bond of the issue. The list of persons eligible to receive the seventh coupon yield was composed as of 28th March 2008.

Information about the bond issue:

UTK’s issue of 03-series non-convertible interest-bearing documentary pay-to-bearer bonds is for a total of RUR 3.5 bln with maturity of 5 years (1830 days), semi-annual coupon periods (183 days) and a buyback option every year and a half. The interest rate of 12.3% per annum on the  first, second and third coupons was fixed at the bond placement (October 6, 2004, MICEX). The coupon rate for coupons 4–6 was set at 10.9% per annum by the Company’s Board of Directors (Minutes ? 28 of 24 March 2006). The coupon rates for coupons 7–10 was set by the Order of the Company’s General Director of 20 September 2007. The interest rate of 9% per annum was assigned to the seventh coupon, the interest rate of 8.5% per annum was assigned to the eighth and ninth coupons, the interest rate of 8% per annum was assigned to the tenth coupon. The state registration number is 4-07-00062-? dated August 17, 2004, trading codes are UTK-03?b., ISIN RU000A0DD202. Arranger of series 03 bond issue is AKB Rosbank. Co–arranger of the bond issue is Promsvyazbank. Financial Consultant is  FFK. UTK-Finance Ltd. acts as UTK’s underwriter. Additional information on the issue can be obtained here.