Krasnodar, September 6, 2005 – 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 September 6, 2005its Board of Directors adopted the resolution on prolongation of the term of office of Georgy Romsky,Director General of "Southern Telecommunications Company" PJSC, from September 6, 2005 till September 6, 2006 inclusive.

This issue was considered by UTK’s Board of Directors in connection with the termination on September 5, 2005 of the term of office of the Company’s Director General set by the resolution of the Board of Directors dated March 3, 2005.

Commenting on the resolution of the Board of Directors,Sergey Kuznetsov, Chairman at UTK, stated: «Having analyzed the Company’s 1H 2005 results, the Board of Directors highly appreciated Georgy Romsky’s work as UTK’s CEO. With Mr Romsky as CEO, "UTK" PJSC managed to achieve the planned targets and create conditions for stabilization of its financial situation. The BoD also marked the necessity of further efforts on improvements in the Company’s financial result, cost reduction and strengthening UTK’s market positions. So, the Board of Directors took the decision to prolong the term of office of Georgy Romsky in the capacity of the Director General of "Southern Telecommunications Company" PJSC for one year”.

Biographical overview: Georgy Romsky was born on January 3, 1956. In 1978 he graduated from the Leningrad Bonch-Bruyevich State University of Telecommunicationsas a telecommunications engineer. Till July 2000 he was Technical Director of OJSC “Saint-Petersburg Long-distance Telephone”, since July 2000 – Deputy Director General of “Svyazinvest” OJSC. Georgy Romsky holds an honorary title “ Master of Telecommunications”. Since March 2005 he has been working as Director General of "Southern Telecommunications Company" PJSC.

For any further information please contact:

UTK IR Team

phone + 7 861 253 20 30, fax + 7 861 253 19 69, e-mail: pmaleev@mail.stcompany.ru

UTK PR Team

phone + 7 861 259 56 99, fax + 7 861 259 56 99, e-mail: dali@mail.stcompany.ru