On 29 July 2004 within the framework of the Annual General Shareholders' Meeting the management of "Southern Telecommunications Company" PJSC (RTS: KUBN,KUBNP) held a meeting with telecom analysts and representatives of the business press. Analysts of IG “ATON”, IK “OFG”, OJSC “Alfa-Bank”, CJSC IK “AVK-Securities”, correspondent of “Prime-TASS” took part in the meeting. "UTK" PJSC was represented by Ivan Fyodorovich Ignatenko-General Director of "UTK" PJSC, Svetlana Gennadyevna Fefilova – Deputy General Director for Economics, Andrey Aleksandrovich Litvinov – Deputy General Director for Corporate Governance, Antonida Mikhailovna Malova – Deputy General Director for Finance, Yevgeny Borisovich Rzhevskiy – Deputy Technical Director, Ivan Ignatenko – Director of Corporate Governance and Securities Department, Dmitry Lyakh – Director of Legal Affairs Department, Pavel Maleev – Head of the Investor Relations Section. Management of "Southern Telecommunications Company" PJSC made a presentation of the Company’s performance results and development strategy and answered all the questions of the analysts and journalists. I.F. Ignatenko noted in his report: "The first year of a joint work of the merged companies, the year 2003 was rather successful. Due to the active investment program in 2003 digitization rate of local communication network has increased from 38 to 49 %. Revenue is up 28 % reaching 13.5 billion roubles, profit from sales is up 23 % to 3.1 billion roubles. Revenue from new services in 2003 is up 79 % to 546 million roubles".

Plans of "UTK" PJSC aimed at achieving the Company’s main strategic goal up to 2006, that is strengthening its positions in the telecommunications market of the Southern Federal District and raising the Company’s share in the revenues of SFD telecommunications sector to at least 51%, were reported during the presentation. In order to fulfill the goal, the following tasks have been set forth for OJSC ‘’UTK’’: to ensure an average annual growth of revenues at the level of no less than 26%, to increase the Company’s share in the ‘’business sector’’ segment up to 55%, to increase the Company’s share in the market of value-added services to the level of at least 50%. The main task of "UTK" PJSC for 2004 is to seize the promising and lucrative market segments in order to ensure increase of business efficiency of the Company and stable sources of profit in the future.

"UTK" PJSC pays special attention to the Company’s information transparency and plans to conduct similar meetings within the framework of its Investor Relations Program on a regular basis. We would be glad to receive your proposal on holding a meeting to discuss performance and development prospects of the Company. Please, contact Pavel Maleev, head of Investor Relations Section of "UTK" PJSC:

tel. +7 (8612) 53 20 30,
fax +7 (8612) 53 19 69,
pmaleev@mail.stcompany.ru.