The largest digital services provider in Russia

Rostelecom bond issue

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Moscow, Russia – February 24, 2012 – Rostelecom OJSC (MICEX & RTS: RTKM, RTKMP; OTCQX: ROSYY) (“the Company”), Russia’s national telecommunications operator, today announces that on March 1, 2012, its Board of Directors will determine the offering price of Rostelecom securities, specifically, thirteen issues of non-convertible documentary interest-bearer bonds with mandatory centralised custody. It is proposed that the Board of Directors will set the offering price at RUB 1,000 per bond, which is 100% of its nominal value.

As a result, Rostelecom will start obtaining the necessary approvals to organise the bond issue for a total nominal value of RUB 100 billion. This will include exchange-traded bonds totalling RUB 60 billion, which are expected to mature in 3 years, and a second issue of exchange-traded bonds totalling RUB 40 billion, which are expected to mature in 5 years.

It is planned that confirmation of the Decision on the bond issue and the Prospectus for the securities will be taken later at a separate meeting of the Board of Directors, after the Federal Agency for State Property Management recognises a price for the placement of the bonds that is accurate and may be recommended for the successful completion of the deal.

The Company will decide on when to place the bonds, and over what period, depending on the state of the financial markets and the cost of alternative sources of financing. It is planned that among other objectives, the bond proceeds will be used to refinance existing debt.