Rostelecom signes cooperation agreement with Svyaznoy

Moscow, Russia – February 9, 2012 – Rostelecom OJSC (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY) (“the Company”), Russia’s national telecommunications operator, today announces that it has signed an agreement with Svyaznoy, the owner of Russia’s largest mobile communications and equipment retail network, which establishes the terms of cooperation between the companies to sell mobile equipment and services in 45 Russian regions.

In accordance with the agreement, Svyaznoy’s shops will provide access to Rostelecom’s mobile services and give access to Rostelecom Group and SkyLink tariff plans in 45 regions. Svyaznoy will also take on new subscribers on behalf of Rostelecom and also sell the Company’s devices, primarily USB modems for mobile data transmission. Rostelecom will gradually expand the range of branded telecommunication equipment it makes available via Svyaznoy.

Pavel Zaitsev, Vice President and Director for Commerce of Rostelecom, commented: “This is the first time Rostelecom has signed an agreement of this kind with the federal retail network Svyaznoy. It is very important that our customers receive a full range of mobile services, which they can now obtain at thousands of Svyaznoy’s outlets, all conveniently located across Russia. This cooperation agreement with Svyaznoy will facilitate the further growth of our subscriber base and provide our tariff plans in all the regions where we operate.”

Yuri Labis, Commercial Director at Svyaznoy, commented: “Svyaznoy is an independent mobile retailer and we are happy to cooperate with other federal and regional mobile operators as it enables us provide a larger number of services. We are particularly happy to do this in the regions where Rostelecom’s subsidiaries exist as they are the leading providers of telecommunication services in these regions.”

In December 2011, Rostelecom and Svyaznoy started work on a pilot project to promote and provide Home Internet and Interactive TV services at Svyaznoy’s shops in 10 regions of the Volga Federal District. Following the completion of this project, the companies plan to start selling these products in other Russian regions.