OREANDA-NEWS. Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; МICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal telecommunications provider for Russia’s Southern Federal District, reports that on 13th December 2006 the Company redeemed the first part of the nominal value of UTK 04-series non-convertible interest-bearing documentary pay-to-bearer bonds (UTK-04оb., RU000A0GK2W9) and paid out in full the fourth coupon income on the bonds of the issue.

The coupon interest rate shall be set according to the Decision on the Bond Issue approved by the Company’s Board of Directors (Minutes N 11 dated 18 October 2005). The fourth coupon interest rate of 10.5% per annum was approved by Order of UTK’s Director General N 393 dated 14 December 2005. Total amount of the fourth coupon yield payable under all UTK series 04 bonds made 130,900,000 rubles. The coupon income on one bond of the issue amounted to 26.18 rubles.

At the same time the Company redeemed in full the first part (10 percent) of the nominal value of UTK series 04 bonds to the amount of 500,000,000 rubles that made 100 rubles on one bond of the issue. The cut-off date of the register of the holders of UTK series 04 bonds entitled to receive the fourth coupon income was 6th December 2006.

Payment agent of series 04 bond issue is NP "NDC".