Krasnodar, October 6, 2004: Southern Telecommunications Company (“UTK”) (RTS: KUBN; OTC: STJSY), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, today announced that its Series 03 senior unsecured bond has been assigned a Russia national scale ‘ruBBB-‘ debt rating from Standard & Poor’s Ratings Services.

UTK’s series 03 issue of non-convertible interest bearing certified bearer bonds due 2009 is expected to be placed on October 6, 2004. The bond issue, with a total par value of RUR 3.5 billion (approximately $120 million), will be used to finance the Company’s 2004 investment program and refinancing of existing obligations. The debt rating from Standard & Poor’s supports UTK’s profile in the capital markets and the Company’s investments to strengthen its future growth and market position.

You can familiarize yourself with the additional information about UTK ratings assigned by S&P on the website at www.standardandpoors.ru.