Krasnodar, December 6, 2005: Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; OTC USA: STJSY), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports today that on December 5, 2005  the Company’s Board of Directors adopted a decision to approve December 14, 2005 as the date to float 04-series non-convertible interest-bearing  documentary pay-to-bearer bonds with the mandatory centralized custody (Minutes ? 17). The state registration number of 04-series bond issue is 4-08-00062-A. The bond is to be placed by public subscription in the MICEX Stock Section. During the first and the following days of the bond placement the bonds are to be placed at the price of 100 (one hundred) percent of their face value. Expiry date of the 04-series bond placement is one of the following dates that comes first:  a) the 7th business day after the starting day of the bond placement; or b) the date of the placement of the last Bond of the issue. Additional information on UTK 04-series bond issue (Decision on the Bond Issue, Offering Circular, Informational Memorandum) can be viewed here.

We pay your attention that from December 6 till December 14, 2005 "UTK" PJSC organizes «hot line» dealing with the forthcoming placement of 04-series bond issue. You can ask the Company’s management any questions.

Information about the bond issue:

The Bond issue is for a total of RUR 5 bln, face value of each bond of the issue is RUR 1,000. The Bond issue provides for 16 coupon periods of 91 days each. The first coupon interest rate will be set during the competition to be held  of the starting day of the bond placement. The interest rates on the second, third and  fourth coupons are equal to the first coupon interest rate. The interest rate on the coupons from 5th to 16th is fixed by the Issuer at 10.0% per annum. The coupon yield is accrued on the unredeemed part of a bond’s nominal value.

Under the terms of the Decision of the bond issue, it is assumed that the face value of each 04-series bond will be redeemed consistently by installments within the following deadlines: on the fourth coupon payment date each bond is to be redeemed partly at 10% of its face value; on the sixth coupon payment date each bond is to be redeemed partly at 15% of its face value; on the eighth coupon payment date each bond is to be redeemed partly at 10% of its face value; on the tenth coupon payment date each bond is to be redeemed partly at 15% of its face value; on the fourteenth coupon payment date each bond is to be redeemed partly at 25% of its face value;  on the sixteenth coupon payment date each bond is to be redeemed at the remaining 25% of its face value.

CJSC “AVK Investment Company” acts as the Organizer and Financial Consultant of 04-series bond issue. Co–organizers of the issue are OJSC «KIT Finance Investment Bank” and OJSC AKB «Svyaz-Bank». NP «NDC» acts as the Payment Agent and Depositary providing for the centralized custody of the Bond issue. Underwriter of the issue is LLC “UTK-Finance”.