Krasnodar, February 10, 2005 – Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; OTC: STJSY), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports that on February 9, 2005 the Company paid out the second coupon income under UTK series 02 bonds (UTK-02?b., ISIN RU000A0AUU?0). Total amount of the second coupon yield to be paid under all UTK series 02 bonds made 9.25% annual rate or 69, 180, 000 rubles. The coupon income under one bond amounted to 46 rubles 12 kopecks. The cut-off date of the register of the holders of UTK series 02 bonds for the second coupon income payment was January 28, 2005.