Krasnodar, November 29, 2004: Southern Telecommunications Company (“UTK”) (RTS: KUBN; OTC: STJSY), the principal telecommunications provider for Russia’s Southern Federal District, reports that its Board of Directors held on November 22nd, 2004 recognized the introduction of a unified automated billing system (ABS) on the basis of Amdocs software as a priority in the Company’s operations.

The introduction of ABS on the basis of Amdocs software in "UTK" PJSC is aimed at enhancement of the Company’s business efficiency, reliability and competitive power. Reorganization of the billing system in "UTK" PJSC has the following tasks: standardization and unification of business processes, active deployment and support of value-added services, optimization of ownership and operation costs of the billing systems, reliable technological solution supporting the client base, a unified corporate standard of ABS.

"UTK" PJSC expects that the implementation of the new billing system will allow to increase revenues (through active introduction of the billing system for value-added services, better collection of payments, flexible tariffication of communications services), to reduce associated costs (through decrease in expenses for support of different tariff models, standardization and improvement of billing procedures) and to improve the customer service.

Amdocs Billing Suite software was selected on the basis of a tender among 20 domestic and foreign suppliers. The selection process by the tender commission composed of representatives from all MRCs of “Svyazinvest” holding lasted nearly a year. In the first stage ABS estimation procedure was performed together with the consulting companies “Startcom” and “BDO YunikonRuf” to meet the requirements of telecom operators. In the final stage the tender commission selected the consulting company “Accenture” as the general consultant on ABS solutions and narrowed the range of contenders for ABS. In March 2004 the tender commission announced the results of the tender in selecting the ABS and general consultant of the project to phase in a unified ABS. It picked the following winners of the tender competition: the company “Amdocs” and the company “IBM BSC” as a general consultant and contractor. Amdocs was selected due to its sufficient experience and resources to carry out such a project, reliable technology, availability of the Certificate of the RF Telecommunications Ministry as well as the most optimal solution offered. Amdocs provides "UTK" PJSC with the unlimited and perpetual license to use billing products for all telecommunications services.

The reorganization process of the billing system in "UTK" PJSC will be executed in the following stages: replacement of the existing ?BS by a unified Amdocs ABS; introduction of typical business processes based on the best world practices; development of the modern architectural solution; preparation of the infrastructure for introduction and support of a unified ABS; integration of Amdocs technology with the existing systems supporting billing; transformation and transfer of the existing data to the new ABS; personnel training; carrying out necessary organizational changes.