On 25 May 2004 Southern Telecommunications Company held its Board of Directors meeting (Minutes # 44) at which issues were examined with relation to UTK's annual General Shareholders' Meeting, which is scheduled for June 30, 2004 at the following address: Krasnodar krai, Tuapinsky district, village of Olginka, ZAO Orbita Health Resort (time of the beginning of the meeting is 11:00 a.m. Moscow time on June 30, 2004).

The Board of Directors of "UTK" PJSC gave preliminary approval to the Company's 2003 annual report and recommended that the General Shareholders' Meeting approves the annual report, the annual accounting reports, including the Company's income statement and distribution of profits and losses according to the results of the Company's 2003 financial activity.

In addition, the meeting featured an examination of the auditor's opinion and the Auditing Commission's verification of the 2003 accounting reports.

The Board of Directors of "UTK" PJSC also recommended that the annual General Shareholders' Meeting adopts a decision on payment of dividends for the 2003 fiscal year, as follows:

• Rub 0.11114 per preferred share in cash no later than August 29, 2004;
• Rub 0.08120 per common share in cash no later than December 15, 2004;

The Board of Directors of "UTK" PJSC adopted a decision recommending that the annual General Shareholders' Meeting appoints CJSC "Ernst & Young Vneshaudit" as the company's 2004 Auditor.

The Board of Directors adopted the resolution on including the following items in the agenda of the General Shareholders' Meeting of "Southern Telecommunications Company" PJSC:

• Approval of annual report, balance sheet, income statement and profits and losses allocation report on the basis of the reported fiscal year 2003 financial results.
• Approval of 2003 dividend size, form and time of its payment under each category and type of shares.
• Election of the members to the Company's Board of Directors.
• Election of the members to the Company's Auditing Commission.
• Approval of the Company's auditor for the year 2004.
• Determination of the size of annual remuneration to be paid to the members of the Board of Directors.
• Introduction of amendments and additions to the Company's Charter.
• Introduction of amendments and additions to the Company's Statute on the Board of Directors.
• Introduction of amendments and additions to the Company's Statute on the Management Board.
• Introduction of amendments and additions to the Company's Statute on the Auditing Commission.

Shareholder materials can be viewed in the section 'Investor relations/General Shareholders' Meeting' of the corporate site since 31 May 2003.