Rostelecom increases share in JV with All-Russia State Television and Radio Broadcasting Company (VGTRK) to 41%

Moscow, Russia – November 24, 2015 – Rostelecom PJSC (“the Company”) (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that its Board of Directors has approved the increase of its stake in Digital Television, a joint venture (JV) with the All-Russia State Television and Radio Broadcasting Company (“VGTRK”), to 41.3%. As part of an additional share issue, the Company will acquire RUB 2 billion of the JV’s ordinary shares. The proceeds from the deal will largely be used to develop the JV’s business in Latin America.

The JV has grown steadily since it was founded, and it has built up a portfolio of promising projects, including those related to producing, marketing and distributing pay-TV channels and Russian digital content in foreign markets. The JV has also been focused on creating new Russian thematic channels based on foreign content.

Prior to the transaction, Rostelecom’s share in the JV stood at 25.33%.

Maria Florentieva, Senior Vice President of Rostelecom, commented: “We are increasing our share in Digital Television because we see great potential in this fast-growing and promising segment that is complementary to our core business. This deal will provide us with better access to experts in high-quality, original content creation, which will enhance our competitive advantage in the pay-TV segment. We are looking at growing the JV over time, which will be partly driven by international expansion to countries with significant market opportunities and growth potential, particularly Brazil, Mexico and Argentina.”