OREANDA-NEWS. January 26, 2011. Southern Telecommunications Company (UTK) [(RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the largest fixed-line telecommunications company in the South and North-Caucasian Federal Districts of Russia, hereby announces that the Board of Director of the company has approved the acquisition of a 2.66% stake in Mobitel by contributing 18,391,113 common shares of UTK and 68,377,772 class A preferred shares of UTK, which are at the company’s disposal.

As a result, the company’s Board of Directors adopted a decision to contribute to the charter capital of Mobitel the shares that were bought back from the minority shares opposed to the merger of UTK into Rostelecom.