On 30 September 2003 Board of Directors of "Southern Telecommunications Company" PJSC (Minutes # 18) adopted the resolution on placement of series 02 non-convertible interest-bearing documentary pay-to-bearer bonds with face value of 1000 rubles each and mandatory centralized custody.

Volume of bond placement is RUR 1.5 billion, the term to maturity is 3 years. The bond placement is to be completed by February 2004. All funds raised are to be allocated to finance the investment projects of "UTK" PJSC within the framework of the 2004 Plan for Capital Construction, calling for the expansion and digitization of local telephone networks, building of fiber-optic lines and multiservice telecom networks.