Rostelecom Introduces New Competitive Tariffs

Moscow — May 5, 2003 — Rostelecom (NYSE: ROS; RTS: RTKM), Russia’s national long-distance telecommunications operator, today announced a number of changes to its domestic long-distance (DLD) tariffs for Moscow subscribers, in accordance with the resolution set out by the Russian Anti-Monopoly Ministry.

For the first time in its history, Rostelecom submitted a request to the Anti-Monopoly Ministry to lower some of its DLD tariffs for Moscow subscribers. This will optimize Rostelecom’s tariff policy in Moscow, bringing the Company’s tariffs in line with the rest of the market, and strengthening its position to grow revenues in Moscow.

The following tariff changes will become effective as of May 15, 2003 for customers in the Moscow market:

• DLD tariffs for commercial organizations and households to all destinations (except calls to the Moscow region) during peak hours* will be reduced by 15% on average (reduction will range from 10% to 33% depending on distance).
• DLD tariffs for commercial organizations and households to all destinations during off-peak hours** will be brought more in line with those of competitors, resulting in an average increase of 50%.
• For the first time, Rostelecom has received permission to offer traffic volume discounts on DLD tariffs of up to 30%.

These changes will make Rostelecom’s tariffs more competitive and reduce the dependence of the Company’s DLD rates on the distance of the call, in accordance with worldwide practices.

Additionally, the disparity between Rostelecom’s DLD tariffs during peak and off-peak hours will be reduced. This should have a positive impact on Rostelecom’s off-peak revenue, as the old off-peak tariffs were significantly below the market level.

The Anti-Monopoly Ministry’s decision enables Rostelecom to provide volume discounts to major clients and therefore ensures the flexibility in pricing needed to strengthen the Company’s position in the Moscow corporate client market. For additional information on the new DLD tariffs please visit the News section on the Company’s website (www.rt.ru/en/) or contact Rostelecom’s enquiry desk at “07”.

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