Krasnodar, 29th December 2008: Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; ÌICEX: 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 “TRANK”, selling its 10%-stake in the share capital of CJSC “TRANK”.

This decision was taken by the Board of Directors of "UTK" PJSC in the context of the Company’s Model of reorganization of its non-core businesses (Minutes ¹ 2 of 14 July 2008).