Krasnodar, December 5, 2007 – Southern Telecommunications Company («UTK») (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, announces that it has terminated its participation in CJSC «Kabardino-Balkarian GSM» effective 27th November 2007, selling its 20%-stake in the share capital of CJSC «Kabardino-Balkarian GSM». This decision of the Board of Directors of «UTK» PJSC was taken in the context of the Company’s policy on reorganization of its non-core businesses (Minutes ? 12 of October 31, 2007).