Krasnodar, 12 February 2007: Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; ?ICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal telecommunications provider for Russia’s Southern Federal District, announces an open contest for the right to provide services of arrangement of UTK’s 05 series bond  placement.

 Applications can be submitted from 10:00, Moscow time, 13th February 2007 till 11:00, Moscow time, 15th March 2007. The submitted applications will be examined by the Contest Commission on 16th March 2007. The Contest Commission will sum up the results of the competition on 19th March 2007.

Any legal person meeting the requirements of the Russia legislation, who will timely submit an entry application, can take part in the competition.