Krasnodar, July 18, 2006: Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports that on July 14, 2006 the following UTK’s Board Committees were formed at the meeting of the Company’s Board of Directors (Minutes ?3):

Audit Committee of the Board of Directors

1.	Yevgeny Petrovich Yenin	Chairman of the Committee Deputy Director of Non-profit Partnership «Russian Institute of Directors»
2.	Denis Viktorovich Kulikov	Expert of Investor Protection Association
3.	Elena Petrovna Selvich	Director of Finance Department of “Svyazinvest” OJSC

Personnel and Awards Committee of the Board of Directors

1.	Denis Viktorovich Kulikov	Chairman of the Committee Expert of Investor Protection Association
2.	Valentina Fyodorovna Veremianina	Deputy Director of Legal Department of “Svyazinvest” OJSC
3.	Elena Viktorovna Zabuzova	Director of Economic Planning and  Budgeting Department of “Svyazinvest” OJSC
4.	Vladimir Pavlovich Yuriev	Head of Economy, Finance and Public Property Board of the Federal Communication Agency

Corporate Governance Committee of the Board of Directors

1.	Ekaterina Aleksandrovna Punina	Chairman of the Committee Senior specialist of Corporate Governance Department of “Svyazinvest” OJSC
2.	Valentina Fyodorovna Veremianina	Deputy Director of Legal Department of “Svyazinvest” OJSC
3.	Andrey Alexandrovich Vinkov	Reviewer of ANO "Magazine "Expert"

Strategic Development Committee of the Board of Directors

1.	Elena Viktorovna Zabuzova	Chairman of the Committee - Director of Economic Planning and  Budgeting Department of “Svyazinvest” OJSC
2.	Alexander Vladimirovich Andreev	General Director of "UTK" PJSC
3.	Yevgeny Petrovich Yenin	Deputy Director of Non-profit Partnership «Russian Institute of Directors»
4.	Anatoly Anatolievich Gavrilenko	Director General of “Leader” CJSC