Krasnodar, 9 October 2006 – 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 9th October 2006 (taking into consideration days off) the Company paid out the fourth coupon yield on UTK series 03 bonds (UTK-03?b., ISIN RU000A0DD202) in full. The amount of the fourth coupon yield to be paid on 03 series 03 bonds was calculated on the basis of a 10.9% annual rate set by the resolution of the Company’s Board of Directors (Minutes ? 28 of 24 March 2006) totaling 191,275,000 rubles. The fourth coupon yield of 54 rubles 65 kopecks was paid out on each bond of the issue. The list of persons eligible to receive the fourth coupon yield was composed as of 27th October 2006. Rosbank acted as UTK’s Payment agent for 03-series bond issue.