Krasnodar, 26th  March 2007: Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; ?ICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal telecommunications provider for Russia’s Southern Federal District, announces an open contest for the right to extend credit (credit line).

Lot ?1. Credit line with a total limit of 1,000,000,000.00 (one billion) rubles for a term of 3 years (May 2007 – May 2010).

Lot ?2. Credit line with a total limit of indebtedness of 500,000,000.00 (five hundred million) rubles for a term of one year  (May 2007 – May 2008). Period of the credit turnover is 30 (thirty) days. The turnover starts from the actual date of the credit provision.

Applications can be submitted from 10:00, Moscow time, 26th March 2007 till 11:00, Moscow time, 25th April 2007. The submitted applications will be examined by the Contest Commission on 25th April 2007. The Contest Commission will sum up the results of the competition on 27th April 2007.

Any legal person meeting the requirements of the Russia legislation, who will timely submit an entry application, can take part in the competition.

You can familiarize yourself with the detailed information about the competition at www.stcompany.ru/about/tenders.