Krasnodar, October 5, 2004: Southern Telecommunications Company (“UTK”) (RTS: KUBN; OTC: STJSY), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports about its participation in the road show held from 22 to 29 of September 2004 in the cities of Krasnodar, Rostov-on-Don, Nizhniy Nivgorod, Saint Petersburg and Moscow. The road show is timed to the starting date of the placement of UTK series 03 bond issue which is to be October 6, 2004. It was the first road show in Russia corporate bond market. Andrey Litvinov, Antonida Malova, Svetlana Fefilova, Deputies General Director of "UTK" PJSC took part in the presentations. The road show was organized by "UTK" PJSC together with Open Joint –Stock Company AKB “Rosbank” acting as Organizer, Underwriter and Payment Agent of UTK series 03 bond issue. Representatives of banks, brokerage houses, investment funds, insurance companies and retirement funds were invited to the presentations as potential investors. All-in-all over 350 people representing more than 100 companies and banks took part in the presentations held during the road show.

Total par value of series 03 issue of non-convertible interest-bearing certificated pay-to-bearer bonds of "UTK" PJSC makes 3.5 billion rubles, maturity date is the 1830th day from the starting date of the issued bonds placement, face value of each bond is 1000 rubles. "UTK" PJSC plans to direct financial assets to be obtained from series 03 bond issue to financing the 2004 capex program and refinancing of the Company’s obligations.