OREANDA-NEWS. Telecommunications Company (STC [(RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the largest fixed line operator in the territory of Russia’s Southern Federal District, hereby announces that in accordance with the terms and conditions of an option under STC’s series-3 bond issue, the operator has executed in full its obligations to redeem 2,960,347 (two million nine hundred and sixty three hundred and forty seven) share at a price which is equal to 100% of their par value. 

The total amount of the redemption was Rub 2,865,295,400.31 (two billion eight hundred sixty five million two hundred ninety five thousand four hundred and 31 kopecks) including coupon income amounting to Rub 1.73 per bond, as calculated on October 15, 2007.

Overview of the issue:

The total value of South Telecommunication’s third-series non-convertible, interest-bearing, documentary bonds is Rub 3.5 bln, the term to maturity of the issue is 5 years (1,830 days) with a semi-annual coupon period (183 days), which carries a 1.5-year option.

The interest rate on coupons 1-3 was set at 12.3% at the time of placement (October 6, 2004 on MICEX).  The interest of coupons 4-6 was set at 10.9% by the Board of Directors (Minutes # 28 dated March 24, 2006).  The interest rates on coupons 7-10 were set by order of the General Director of the company on September 20, 2007.  The interest rate is 9% on the 7th coupon, 8.6% on coupons 8-9, and 8% on coupon 10. The state registration number of the issue is 4-07-00062-Аdated August 17, 2004, with the following trade codes: stc-03ob and ISIN - RU000A0DD202. The arranger is AKB Rosbank.  The co-arranger is Promsvyyazbank.  The financial consultant is OAO FFK.  Security is provided by STC Finance.  For further information on this issue, please visit the operator’s corporate website at  http://www.stcompany.ru/investor/bumagi/oblig03.