Krasnodar, 10 February 2006:Southern Telecommunications Company (“UTK”) [(RTS: KUBN; OTC: STJSY), the principal fixed-line telecommunications provider for Russia’s Southern Federal District reports that on February 8, 2006 the Company paid out in full the 4th coupon on UTK’s 02-series bond issue (UTK-02commons, ISIN RU000A0UUT0). The total amount of the fourth coupon yield to be paid out at the 12% rate, established by the Company’s Board of Directors (Minutes ? 22 dated as of 21 January 2005), was Rub 89,760 mln. A Rub 59,84 coupon yield was paid per bond. The list of persons eligible to receive bond coupon was composed as of January 27, 2006. AKB Rosbank acts as the payment agent for UTK 02-series bond issue. 

Information about the bond issue:

Volume of the issue of UTK series 02 non-convertible interest-bearing  documentary pay-to-bearer bonds is RUR 1.5 billion, the term to maturity is 3 years (1,092 days) with semi-annual coupon periods (182 days) and a buyback option every year  from the date of placement at 100 % of the par value. The first buyback option was executed in full through repurchase of 1, 092, 657 Bonds on February 16, 2005. The interest rate of 9.25% per annum on the  first and second coupons was fixed at the bond placement (February 11, 2004, MICEX). Effective redemption yield constituted 9.46% per annum at the bond placement. Secondary bidding started in the MICEX on April 8, 2004. The interest rate on the third and fourth coupons was fixed at 12.0% per annum. The rate for coupons 5-6 was fixed at 10.5% (Minutes ? 22 of 21 January 2005).  State registration number of the bond issue is 4-06-00062-A of November 28, 2003; trade codes are UTK-02commons, ISIN RU000A0AUU?0. Arranger, Underwriter and Payment agent of the series 02 bond issue is OJSC AKB "Rosbank". “Investment company “AVK” acts as Financial Consultant. You can familiarize yourself with additional information on the bond issue here.