Krasnodar, 27 June 2006 – Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the largest fixed-line telecommunications provider for Russia’s Southern Federal District, reports that on 27th June 2006 the Company’s Annual General Shareholders Meeting was held in its principal office in Krasnodar.

The General Shareholders Meeting  approved the Company’s Annual report, annual financial accounts, including profit and loss statement (profit and loss accounts), distribution of profits and losses  for 2005 fiscal year.

The AGM adopted the decision to pay the following 2005 dividend:

• preference share dividend amounting to 0. 031395 rubles per one share payable in cash prior to 25 August 2006;
• ordinary share dividend amounting to 0. 01031 rubles per one share payable in cash prior to 15 December 2006.

The annual General Shareholders Meeting elected a new membership of the Company’s Board of Directors, 11 directors in number. The following persons were elected to the UTK Board of Directors:

• Boris Dmitrievich Antonyuk, Deputy Minister for Information Technologies and Communications of the Russian Federation
• Valentina FyodorovnaVeremianina, Deputy Director of the Legal department of “Svyazinvest” OJSC
• Andrey Alexandrovich Vinkov, Reviewer of ANO "Magazine "Expert"
• Anatoly Anatolievich Gavrilenko, General Director   of "Leader" CJSC
• Yevgeny Petrovich Yenin, General Director   0f IK «Russkiy monolit»
• Elena Viktorovna Zabuzova, Director of Economic Planning and Budgeting Department of “Svyazinvest” OJSC
• Denis Viktorovich Kulikov, Expert of Investor protection association
• Stanislav Nikolaevich Panchenko, Deputy Director General of “Svyazinvest” OJSC
• Ekaterina Alexandrovna Punina, Chief specialist of Corporate Governance Department of “Svyazinvest” OJSC
• Elena Petrovna Selvich, Director of Finance Department of “Svyazinvest” OJSC
• Vladimir Pavlovich Yuriev, Head of Economy, Finance and Public Property Board of Federal Communication Agency

The Auditing Commission of "UTK" PJSC was elected 5 persons in number. The following persons were elected to the UTK’s Auditing Commission:

• Alla Albertovna Ganeeva, Head of the section of Telecommunications Department of “Svyazinvest” OJSC
• Tatiana Yurievna Zubova, Deputy head of the methodology section of Accounting Department of “Svyazinvest” OJSC
• Dmitry Anatolievich Loshakov, Chief specialist of Economic Planning and Budgeting Department of “Svyazinvest” OJSC
• Natalia Vadimovna Feoktistova, Head of the section of Legal Department of “Svyazinvest” OJSC
• Kirill Viktorovich Frolov, Deputy Director of Internal Audit Department of “Svyazinvest” OJSC

LLC “Ernst and Young” was appointed the Company’s external auditor for the year 2006. 

The shareholders determined the rates of deductions (percent) for calculation of the size of annual remuneration payable to the members of the Board of Directors.

The AGM took a decision to introduce amendments and additions into the Company’s Charter, Regulations on the procedure for holding a General Shareholders Meeting, Provisions on the Board of Directors, Provisions on the Management Board, Provisions on the Auditing Commission.

The shareholder materials for the AGM can be viewed in the section Investor Relations of the corporate website. Minutes of the annual General Shareholders Meeting will be placed in the same section of the corporate website at a stated time.