Krasnodar, 11 October 2007 – 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 within the framework of the reorganization of non-core businesses and according to the decision of its Board of Directors (Minutes ? 31 of 7 April 2006) the Company intends to sell the operating communications plant in the city of Armavir on a competitive basis. Total area of the plant’s territory is 2.9 hectares, floor area is 12,000 square meters. The plant manufactures cables and wires having over 400 descriptions.

If you have any intention for bid, please contact Yegor Rodin, Director of the Assets Management Department of "UTK" PJSC, at +7 (861) 259-27-53, e-mail: e.rodin@mail.stcompany.ru