Krasnodar, 19 April 2007– 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 CJSC TRK “Foton” effective 19^th April2007, selling its 50.5%-stake in the share capital of “Foton” CJSC. This decision of the Board of Directors of "UTK" PJSC was taken in the context of the Company’s policy on reorganization of its non-core businesses.