OREANDA-NEWS. 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-03оb., 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) totalling 191,275,000 roubles. The fourth coupon yield of 54 roubles 65 kopecks was paid out on each bond of the issue.

Rosbank acted as UTK’s Payment agent for 03-series bond issue.

UTK’s issue of 03-series non-convertible interest-bearing documentary pay-to-bearer bonds is for a total of RUR 3.5 billion with maturity of 5 years (1830 days), semi-annual coupon periods (183 days) and a buyback option every year and a half.