OREANDA-NEWS. Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; МICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal telecommunications provider for Russia’s Southern Federal District, reports that UTK’s dividend payout on common shares for the Company’s 2005 financial results totals RUR 26,915 thousands as of December 15, 2006.

The decision to execute the dividend payout on common shares, the amount and cut-off date of payment (0.01031 rubles per share to be paid prior to December 15,2006) was approved by the Company’s June 27, 2006 Annual General Shareholders Meeting. The total amount of 2005 dividends accrued on UTK’s common shares is RUR 30,522.9 thousands.

The amount of the paid-out dividends has made 88.2 % of the income subject to payment. Non-execution of the obligation to pay out 2005 dividend to the amount of 3,607 thousand rubles was due to the fact that some shareholders had failed to appear and receive their accrued dividends or had furnished incomplete or out-dated information on their bank details or postal addresses.