Press release
Krasnodar, October 23, 2009: Southern Telecommunications Company (UTK) [(RTS: KUBN, KUBNP; ÌICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the largest fixed-line telecommunications company in the Southern Federal District of Russia, hereby announces that in accordance with a decision adopted by the Board of Directors of the Company (Minutes # 9 dated October 15, 2009) the company signed a credit agreement with Nordea Bank. The amount of the loan is RUR 3,000 mln, with a term of 3 years. Theloancarriesa14.6% interestrate. The loan is to be repaid on a monthly basis by equal amounts beginning from May 25, 2011 until October 15, 2012 inclusive. The proceeds derived from the issue are to be used to finance the company’s current business activities, which include financing its debt obligations.
