Rostelecomís Board of Directors approves share buyback price

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Moscow, Russia – March 27, 2013 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that its Board of Directors has determined the share price for each ordinary share and each preferred share that will be bought back by the Company from shareholders voting ‘against’ Rostelecom’s reorganisation and from those not taking part in the voting. Both single share prices were valued at market rates by Ernst and Young as an independent appraiser, and set at RUB 136.05 for ordinary shares and RUB 95.24 for preferred shares. The Group will seek to approve this latest step of its reorganisation, which sees Rostelecom and Svyazinvest assets being merged at Rostelecom’s AGM in the summer of 2013[1].

The evaluation of Rostelecom shares is the latest step in the second stage of the Group’s reorganisation, which is in accordance with a Russian Presidential Decree[2], and is aimed at simplifying the Group’s shareholder structure and eliminating any cross-ownership between Rostelecom and Svyazinvest. The Group has already completed a number of important stages as part of the reorganisation process, which saw Rostelecom acquire ZAO Sky Link and issue additional Svyazinvest shares, which were then acquired by the State by exchanging stakes in a number of telecom assets.

[1] In accordance with a49 p4 ‘Law on Joint Stock Companies’ resolution on the reorganization taken at an AGM with a 75% shareholder majority as voted for by voting shareholders at the AGM (including both holders of ordinary and preferred shares)

[2] Russian Presidential Decree No 340, dating 24.03.2012 ‘On the reorganization of Rostelecom’