Krasnodar, December 19, 2005:Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; OTC USA: STJSY), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports today that UTK’s dividend payout on common shares for the Company’s 2004 financial results totals RUR 26,663.6 ths as of December 15, 2005. The decision to execute the dividend payout on common shares, the amount and cut-off date of payment (0.00934 rubles per share to be paid prior to December 15,2005) was approved by the Company’s June 30, 2005 Annual General Shareholders Meeting. The total amount of 2004 dividends accrued on UTK’s common shares is RUR 27,651.2 ths.

The amount of the paid-out dividends has made 96.4 % of the income subject to payment. The balance remained unpaid includes taxes to be paid within 10 days after the dividend payout and unclaimed dividends of the shareholders who have failed to appear and receive their accrued dividends or furnished incomplete or out-dated information on the bank details or postal address. Some portion of the dividends was not paid out because nominal holders had not disclosed information about their owners. The Company endeavors to eliminate the abovementioned reasons and to execute its obligations on dividend payment in full. Despite the fact that the cut-off date of 2004 dividend payment is over, the Company  will continue to pay out 2004 dividend as well as dividends for previous years. The information on dividend payment can be acquired in the shareholders centers of UTK’s regional branches. Their addresses can be viewed on the corporate site here