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, reports that on June 6, 2007 placement of the Company’s 05-series non-convertible interest-bearing  documentary pay-to-bearer bonds subject to mandatory centralized custody, state registration number 4-09-00062-A, took place in MICEX Stock section.

During the placement auction, the interest rate for the first coupon of 05 series bond issue was determined at 7,55% per annum. The bulk of the bids were in the 7,3% -7,8% range.

Volume of submitted bids amounted to 3,45 billion rubles exceeding considerably the volume of placement. As a result, 48 bids for a total of 2 billion rubles were met during the auction.

The total yield for the 1st quarterly coupon to be paid out on UTK’s 05 series bonds equals 75,300 thousand rubles (seventy five million and three hundred thousand rubles) with RUR 37,65 (thirty seven rubles sixty five kopecks) yield on each bond.