OREANDA-NEWS. On April 15, 2008 Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; МICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reported that pursuant to the decision of the Board of Directors (Minutes №25 of April 8, 2008 ) the Company signed a non-revolving credit line agreement with Commercial Joint –Stock Bank “Bank Societe Generale Vostok” (Closed Joint –Stock Company ), reported the press-centre of UTK.

The total amount of all Loans, granted under this Agreement, shall not exceed 1,000,000,000 (One billion) rubles. Ruble Rate is equal to rate for loans (deposits) on interbank market (MOSPRIME) for a 1-month term plus interest rate of 2,75% per annum. Interest period is one month The Creditor is granting the Borrower the right to withdraw funds once in form of Loans within 6 (Six) months starting from the date of signing the Agreement.

The Borrower shall repay granted Loans in equal shares through 36 months from the signing date of the Agreement within last four months of Credit Line Period. The Borrower will pay the Creditor the loan provision fee in the amount of 0,25% percent from the amount of Credit Line Limit.