Krasnodar, 12 July 2007: Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the largest fixed-line telecommunications provider for Russia’s Southern Federal District reports that on July 10, 2007  Federal Financial Markets Service of Russia registered the Report on the results of the issue of 05-series non-convertible interest-bearing  documentary pay-to-bearer bonds of Public Joint –Stock Company "Southern Telecommunications Company" with obligatory centralized custody. The state registration number of 05-series bond issue is 4-09-00062-A. The bond issue was placed by public subscription in the MICEX Stock Section on the sixth of June 2007. Pursuant to the Report on the results of the bond issue filed to FFMS of Russia, 2,000,000 (two million) bonds with the face value of 1,000 (one thousand) rubles each have been placed by the Issuer.

Identification characteristics of series 05 bond issue of "UTK" PJSC:

The issue is for a total of Rub 2 bln.

Period to maturity is 5 years.

The face value of 1 bond is Rub 1,000.

The bond issue carries 10 coupon periods, each lasting 182 days. The interest rate for the 1st coupon was set at 7.55% according to the results of the auction held on the day of placement. The 2nd, 3rd, 4th, 5th and 6th coupon yields equal the interest rate of the 1st coupon. The 7th through 10th coupons shall be fixed by the Issuer not later than 10 (ten) calendar days prior to the expiry date of the preceding coupon period.

The possibility of Bonds acquisition by the Issuer under the agreement with the Bonds owners or on their demand is provided for, such Bonds being available for further circulation until the repayment deadline.

The date of the bonds’ acquisition by the Issuer is determined as the third working day of the seventh coupon period or June 4, 2010. Call option period is from May, 29 till June 2, 2010 inclusive. Number of bonds to be bought out is up to 2,000,000 units inclusive. The acquisition price is 100 % of the face-value. The price does not include accumulated coupon income under bonds as of the date of bonds repurchase which is to be paid by the Issuer to the Bond owner in addition to the acquisition price at the moment of the transaction

Financial consultant of the 05 series issue is CJSC Russian Industrial Bank. OJSC AKB Svyaz-Bank acts as the arranger and payment agent of the issue. LLC UTK-Finance is the underwriter of the bond issue.

You can familiarize yourself with additional information on 05 series bond issue of "UTK" PJSC  (Decision on the Bond Issue, Offering Circular, Information Memorandum, Report on the Results of the Bond Issue) here.