Krasnodar, December 6, 2004: Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; OTC USA: STJSY), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports that on 30 November 2004 UTK series 03 bonds (commercial code – RU000A0DD202, abbreviated name – UTK-03 ob., state registration number - 4-07-00062-? dated as of 17 August, 2004) started to be traded in the MICEX Stock market section.

The report on the results of the issue of series 03 non-convertible interest-bearing documentary pay-to-bearer bonds with mandatory centralized custody was registered on November 11, 2004.

Total par value of UTK series 03 bond issue is RUR 3.5 billion, the term to maturity is 5 years with offers for the redemption – 1.5 and 3 years from the date of placement. Face value of each bond is 1000 rubles. The first coupon rate expressed as annual interest rate was established at the MICEX bidding at 12.3% and effective profitability vs. 1.5-year offer - at 12.68%. First coupon income to be paid under each UTK series 03 bond amounted to RUR 61.67. The interest rate on the second and third coupons will be equal to the first coupon rate. The interest rate on the fourth, fifth and sixth coupons is to be fixed by the Issuer not later than 10 business days prior to the date of the third coupon payment. The interest rate on the seventh, eighth, ninth and tenth coupons is to be fixed by the Issuer not later than 10 business days prior to date of the sixth coupon payment.

Organizer, Underwriter and Payment agent of series 03 bond issue is Open Joint –Stock Company AKB "Rosbank". Co–organizer of the bond issue is AKB “Promsvyazbank”. Co-underwriters of the issue are "Aton" Ltd., Bank "Zenit", OJSC "Web-Invest Bank", “BK Region” Ltd., “ING Bank (Eurasia)”, “International Moscow bank” CJSC, “Promishlenno-stroitelniy bank” OJSC, AB "Gazprombank", KB "Moskommertsbank", IK “Russ-Invest”.