OREANDA-NEWS. August 18, 2010. Southern Telecommunications Company (UTK [(RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the largest fixed-line telecommunications operator in the territory of the Southern and North-Caucasian Federal Districts of Russia, hereby announces that on August 5, 2010 a meeting of the Board of Directors of UTK was held at which the Report on the Results of Shares Presented by Shareholders for Buyback was approved.

The total number of shares subject to buyback amounted to 88,016,476.  Of this amount, UTK in accordance with Federal Law 208-FZ “On joint-stock companies” is prepared to buy back 19,797,426 common shares (0.67% of the total number of UTK’s common shares, and 6.88% of the number of preferred shares).

The amount of shares allocated for the buyback of shares stood at RUR 386,203,734 (2.1% of the value of UTK’s net assets as of March 31, 2010).

All shares presented for buyback are to be redeemed by the Company in the full amount as shown in shareholders’ applications.  Payment of shares to be bought back will be made in cash by September 1, 2010 (inclusive).