OREANDA-NEWS. January 12, 2009. 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, reports that UTK’s dividend payout on common shares for the Company’s 2007 financial results totals 240,032.8 thousand roubles as of December 31, 2008, reported the press-centre of UTK.

The decision to execute the dividend payout on common shares, the amount and cut-off date of payment (0.082069 rubles per one ordinary share to be paid prior to December 31,2008) was approved by the Company’s Annual General Shareholders Meeting held on June 17, 2008.

The total amount of 2007 dividends accrued on UTK’s common shares is 242,966.3 thousand roubles.

The amount of the paid-out dividends has made 98.8 % of the income subject to payment. Non-execution of the obligation to pay out 2007 dividend was due to the fact that information about some shareholders was not available in the list of persons entitled to receive the Company’s dividends. Besides, the Company’s shareholder register contained out-dated information about some shareholders’ passport records, banking details and postal addresses.

The Company endeavors to eliminate the abovementioned reasons and to execute its obligation on dividend payment in full. The information on dividend payment can be acquired by telephone (851) 259-25-38 as well as in the shareholders centers of UTK’s regional branches.