OREANDA-NEWS. Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia’s Southern Federal District, today announced its 1Q2007 financial results compiled in accordance with Russian Accounting Standards (RAS).

UTK generated 1Q2007 revenue of RUR 4,731.8 million, representing a 14.9%-increase over 1Q2006. Revenue from telecommunications services have increased by 15.5% to RUR 4,522.3 million.

1Q2007 revenues from value-added services rose 54.8% over a year-ago to RUR 613.4 million.

1Q2007 EBITDA increased 20.6% over 1Q2006 to RUR 1,949.7 million. EBITDA margin was up 1.9 percentage points to 41.2%. Operating income grew by 17.2% over a year ago to RUR 1,454.1 million. Operating margin was up 0.6 percentage points reaching 30.7%.

1Q2007 net income amounted to RUR 587.3 million.