KRASNODAR, May 25, 2005 -- On May 25, the board of directors of Southern Telecom, or UTK [(RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], Russia’s telecommunications company for the Southern Federal District, approved the agenda of the companys annual general meeting of shareholders (AGM) (protocol N 36).

The companys AGM is to be held on June 30 at 11:00 a.m. Moscow time on 66 Karasunskaya Street, Krasnodar, Krasnodar Region.

The board of directors preliminarily approved the companys annual report for 2004 and recommended that the AGM approve the annual report and the company’s financial statements, including the profit and loss account for 2004, and the profit and loss distribution account for 2004.

The board also considered the auditors and audit commissions reports on the results of the companys audit for 2004.

The board recommended that the AGM approve dividends for 2004 at 0.02847 rubles per preferred share and 0.00934 rubles per common share.

The board decided that dividends for preferred shares should be paid no later than August 29 and dividends on common shares, no later than December 15.

In total the company plans to spend 55.3 million rubles in dividends for 2004, or 20% of the companys net profit.

The AGM’s register was closed on: May 11, 2005.

The companys board of directors decided to recommend Ernst &Young Vneshaudit to the AGM as UTKs auditor for 2005.

The board decided to put the following issues on the agenda for the AGM:

• Approving the annual report, financial statements, including profit and loss account, and profit and loss distribution account
• Setting the amount of dividends for 2004 and the terms of payment for shares of each category
• Election of the companys board of directors
• Election of the companys audit commission
• Approving the companys auditor for 2005
• Setting standard rate of bonuses paid to the members of the companys board of directors
• Introduction of amendments and addendums to the companys charter
• Introduction of amendments and addendums to the regulation on the companys board of directors
• Introduction of amendments and addendums to the regulation on the companys annual general meeting
• UTKs withdrawal from the Association of Electronic Communication Companies of Volga Federal District and the "Iskra" Association of the Federal Business Service Network

Starting May 30 all documents related to UTK’s AGM are available on the company corporate web site www.stcompany.ru