Krasnodar, June 24, 2005:  Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, announces that it has terminated its participation in OJSC “Stavropolskoe Kommercheskoe Efirnoe Televidenie” (“SKET” OJSC) effective June23, 2005, selling its 26.824%-stake in the share capital of SKET. This decision of the Board of Directors of "UTK" PJSC (Minutes ?24 ?f 04.02.2005) was taken in the context of the Company’s policy on reorganization of its non-core businesses and on the basis of  estimation of the business case for UTK’s further participation in this company.

Profile of SKET OJSC: The company’s key activity is provision of services on direct “on-air” broadcasting of TV programs. Financial position of SKET OJSC is evaluated as unsatisfactory. According to 2003 results the company’s net loss was 2,000 rubles, 2004 net loss reached 270,000 rubles.

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

Southern Telecommunications Company PJSC, or UTK, is the principal provider of fixed line telecommunications for Russia’s Southern Federal District, a region covering 520 ths sq km with population of 18.7 million people. "UTK" PJSC  provides various telecom services of local and long-distance telephony, broad range of value-added services (VAS) (services of Internet, IP-telephony, ISDN, VPN, CTV and others).  Total revenue of "UTK" PJSC for the year 2004 is up 24% to RUR 16.8 bln, EBITDA is up 25%  to RUR 4.3  bln (RAS). Number of basic telephone sets operated by "UTK" PJSC makes 4 million units. During 2004 UTK increased its market share of local fixed- line services  to 83%, value-added services – to 44%.

UTK is a subsidiary of Svyazinvest holding which owns 38% of the Company’s authorized capital. UTK shares are traded in the Classic Market of NP “RTS SE” (KUBN; KUBNP), OJSC “RTS” (KUBNG; KUBNPG)), in   the stock section of the Moscow Interbank Currency Exchange (MICEX) (UTEL; UTELP). One unit of American Depositary Receipt of "UTK" PJSC  represents 50 common shares of the Company. UTK ADRs are traded in the US over-the-counter market (STJSY), and quoted in the over-the counter market of Frankfort and Berlin Stock Exchanges (KUE) and NEWEX (KUE).

Additional information about the Company  can be accessed on the website atwww.stcompany.ru, in the Information Disclosure System  SKRIN Issuer, in KUBN_RU of the systems Bloomberg and Reuters as well as on the web-portal Rustocks.com.