Krasnodar, November 25, 2008: Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; ĚICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia’s Southern Federal District reports that pursuant to the Decision of the Board of Directors of the Central Bank of the Russian Federation dated 28 October 2008, the Company’s series 04 and series 05 bond issues with state registration numbers of 4-08-0062-Ŕ and 4-09-0062-Ŕ accordingly, have been included into the Lombard List of the Central Bank of Russia.

This decision became possible due to effective financial policy of Southern Telecommunications Company and due to successful cooperation with rating agencies. Inclusion of the Company’s bonds into the Lombard List of the Central Bank of the Russian Federation proved the correctness of the UTK’s strategy on development of the secondary securities market, making it possible to extend the circles of potential investors.

Deputy Director General – Director for Economics and Finance of Southern Telecommunications Company Alexander Dobryakov noted that this fact characterized the bonds as a reliable instrument to cover the Company’s liabilities under credits. Inclusion of the Company’s bonds into the Lombard List of the Central Bank of the Russian Federation showed that the Central Bank of Russia considered the credit quality of UTK to be satisfactory, thus contributing to further enhancement of the liquidity of the bonds.