Krasnodar - 27 August, 2003 - "UTK" PJSC

"Southern Telecommunications Company" PJSC (OTC USA: STJSY; ???: KUBN, KUBNP) is the largest operator in the Southern Federal District of the Russian Federation providing various telecom services (local, domestic and international long-distance telephony, Internet access, data transmission, channels rent and others) for the first time presents the statement formatted IAS. Till 2002 "UTK" PJSC prepared the financial statement in accordance with Accounting Standards USA (GAAP USA). The statement is prepared with the assistance of Independent Auditor "Ernst and Young Vneshaudit".

The accompanying "Southern Telecommunications Company" PJSC consolidated financial statements submitted in view of past reorganization and united merged companies indices merged into "UTK" PJSC as well as affiliated companies.

• Revenues from core activity for the year 2002 reached RUR 11 885 370 ths.*
• EBITDA parameter** for the year 2002 reached RUR 4 710 460 ths., profit from core activity determined RUR 891 966 ths.
• Net profit reached RUR 1 046 116 ths.
• EBITDA margin rate** - 39,6%
• Revenue per 1 share reached RUR 0,30.
• Balance costs of all assets on 31.12.2002 reached RUR 19 591 653 ths.
• Own assets of shareholders taking into account inflation effect on the authorized capital amounting to RUR 1 741 475 ths., on 31.12.2002 reach RUR 12 404 397 ths.
• Retained income and other reserves correspond to assets minus commitments and authorized capital of shareholder own assets reach RUR 9 365 143 ths.

* All financial parameters are submitted in view of purchasing power of rouble on 31.12.2002.
** In 'UTK' PJSC parameter is calculated as sum of pre-tax profit, depreciation charges and interest expenses.

You can familiarize yourself with full version of "UTK" PJSC financial statement for the year 2002, as well as financial statements with auditor GAAP for the years 1997-2001 on the Company's site www.stcompany.ru in the section "Investor Relations".