OREANDA-NEWS. On August 18, 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 UTK’s dividend payout on preferred shares for the Company’s 2007 financial results totals 147,778,382 roubles as of 16th August 2008, the press-centre of UTK reported.

 The decision to execute the dividend payout on preferred shares and the dividend size (0.187915 roubles per one preference share) were approved by the Company’s Annual General Shareholders Meeting held on 17 June, 2008.

 The total amount of 2007 dividends accrued on UTK’s preferred shares is 182,681,913 roubles.

The amount of the paid-out dividends has made 80.0 % of the income subject to payment. Non-execution of the obligation to pay out 2007 dividend is due to the fact that information about some shareholders is not available in the list of persons entitled to receive the Company’s dividends. Besides, the Company’s shareholder register contains out-dated information about some shareholders’ passport records, banking details and postal addresses.

The Company endeavors to eliminate the above mentioned 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.