Krasnodar, 26 June 2007 – Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the largest fixed-line telecommunications provider for Russia’s Southern Federal District, reports that on 26th June 2007 the Company’s Annual General Shareholders Meeting was held in its principal office in Krasnodar.

The General Shareholders Meeting approved the Company’s Annual report, annual financial statements including profit and loss statement (profit and loss accounts) and distribution of profits (including dividend payment) and losses on the basis of the reported fiscal year 2006 financial results.

The AGM adopted the decision to pay the following 2006 dividend:

• preference share dividend amounting to 0.121838 rubles per one share payable in cash prior to 24 August 2007;
• ordinary share dividend amounting to 0.053031 rubles per one share payable in cash prior to 20 December 2007.

The annual General Shareholders Meeting elected a new membership of the Company’s Board of Directors, 11 directors in number. The following persons were elected to the UTK Board of Directors:

Alexander Vladimirovich Andreev – General Director of "UTK" PJSC ;
Boris Dmitrievich Antonyuk - Deputy Minister for Information Technologies and Communications of the Russian Federation
Yuriy Alexandrovich Bilibin  - Adviser of the General Director, “Svyazinvest” OJSC ;
Andrey Alexandrovich Vinkov - Reviewer of ANO "Magazine "Expert"
Yevgeny Petrovich Yenin - Deputy Director of NP «Russian Institute of Directors»
Vladimir Borisovich Zhelonkin - Deputy Director General, “Svyazinvest” OJSC;
Oleg Borisovich Zyuzin - Head of Information Technologies Department, “Leader” CJSC (Pension fund assets management company);
Gennady Georgievich Kudryavtsev – part-time Advisor of the Minister for Information Technologies and Communications of the Russian Federation;
Denis Viktorovich Kulikov – Deputy CEO, Investor Protection Association (non-profit organization);
Stanislav Nikolaevich Panchenko - Deputy Director General of “Svyazinvest” OJSC;
Elena Petrovna Selvich – Executive Director - Director of Economics and Finance Department of “Svyazinvest” OJSC

The Auditing Commission of "UTK" PJSC was elected 5 persons in number. The following persons were elected to the UTK’s Auditing Commission:

Ruslan Kyarimovich Aksyaitov - Deputy Chief Accountant – Head of the section, Accounting, Taxation and Statistics Department of “Svyazinvest” OJSC;
Sergey Vladimirovich Podosinov - Deputy Head of the Internal Audit Department, “Svyazinvest” OJSC;
Mikhail Viktorovich Tretyakov - Head of the section, Economics and Finance Department of “Svyazinvest” OJSC;
Natalia Vadimovna Feoktistova - Head of the section of Corporate Governance and Legal Department, “Svyazinvest” OJSC;
Olga Sergeevna Chetvyorkina - Chief specialist of the Internal Audit Department, “Svyazinvest” OJSC

CJSC “KPMG” was appointed the Company’s external Auditor for the year 2007. 

The shareholders determined the rates of deductions (percent) for calculation of the size of annual remuneration payable to the members of the Board of Directors elected at the General Shareholders Meeting.

The AGM took a decision to introduce amendments and additions into the Company’s Charter, Regulations on the procedure for conducting a General Shareholders Meeting and Statute on the Board of Directors.

The AGM took a decision on the ninth agenda item not to approve the reorganization of "Southern Telecommunications Company" PJSC through merger of OJSC “Kuzminov Stavtelecom” into it.  The AGM did not approve the Agreement of merger.

The shareholder materials for the AGM of 26 June 2007 can be viewed in the section Investor Relations of the corporate website. Minutes of the annual General Shareholders Meeting will be placed in the same section of the corporate website at a stated time.