The largest digital services provider in Russia

Rostelecom reports consolidated IFRS financial results for the fourth quarter and full year ended December 31, 2011

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Moscow – April 27, 2012 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announced its audited consolidated* IFRS financial results for the fourth quarter and twelve months, ended December 31, 2011.

FOURTH QUARTER FINANCIAL HIGHLIGHTS
- Consolidated revenues up 8% year on year to RUB 78.6 billion;
- OIBDA** up 31% year on year to RUB 32.2 billion;
- OIBDA margin of 41.0% compared to 33.8% in the fourth quarter of 2010;
- Net income** up almost seven-fold year on year to RUB 16.7 billion.

FULL YEAR FINANCIAL HIGHLIGHTS
- Consolidated revenues up 7% year on year to RUB 296.0 billion;
- OIBDA up 11% year on year to RUB 117.7 billion with an OIBDA margin of 39.8% compared to 38.5% in 2010;
- Net income up 47% year on year to RUB 46.1 billion;
- Capital expenditure*** of RUB 82.8 billion, representing 28% of consolidated revenues;
- Net debt**** of RUB 152.4 billion with a net debt / OIBDA ratio of 1.3x as at December 31, 2011.

KEY OPERATING HIGHLIGHTS
• Total broadband subscriber base up 24% year on year to 8.2 million;
• Total Pay TV subscriber base increased by over six fold year on year to 5.9 million.

Alexander Provotorov, President of Rostelecom, commented: “Rostelecom delivered strong financial results in 2011. The United Rostelecom is only in the very early stages of its development, and while there are risks associated with the consolidation, we have already achieved significant growth in revenue and net income, with improvements in business efficiency also becoming prominent. Not only have the financial results demonstrated the efficiency of the united Company, but enormous commitment and close cooperation between its different components have been displayed, to successfully complete significant projects such as the unique large-scale project to set up the video surveillance system used to monitor the voting process during the Russian Presidential elections."

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* Combination of consolidated financial statements of North-West Telecom OJSC, CenterTelecom OJSC, Southern Telecommunications Company OJSC, VolgaTelecom OJSC, Uralsvyazinform OJSC, Sibirtelecom OJSC, Far East Telecom OJSC (“RTOs”), Dagsvyazinform OJSC and Rostelecom OJSC, which had been under common control of Svyazinvest OJSC and were merged on April 1, 2011.

** Here and below, please refer to Attachment 1 to this statement for a full definition of OIBDA

*** Here and below, capital expenditure (“CAPEX”) comprises cash spent on purchase of property, plant and equipment and intangible assets

**** Here and below, net debt is calculated as the sum of long-term loans and short-term borrowings minus cash and cash equivalents and shortterm investments