0.43% of Rostelecomís shares have been sold to Svyazinvest as part of the reorganisation process

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Moscow, Russia – May 28, 2013 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that the parent company, OJSC Svyazinvest, has bought 12,644,374 (or 0.43%) of Rostelecom’s ordinary shares from Rostelecom’s subsidiary, LLC MOBITEL (“Mobitel”). † †

The price of one Rostelecom ordinary share was RUB 136.05. Therefore, Mobitel received RUB 1,720,267 thousand for 12,644,374 ordinary shares. This amount was previously received by Svyazinvest as a result of Rostelecom acquiring part of Svyazinvest’s additional share issue last year. † †

As a result of this deal, the amount of shares that Mobitel holds in Rostelecom has decreased to 123,787,653 or to 4.21% of ordinary shares. † †

This deal is the next step of the second stage of the reorganisation process, which is taking place in compliance with a Russian Federation Presidential Decree1 and is designed to simplify the shareholder structure and to eliminate the cross ownership of Rostelecom. †


1 Russian Federation Presidential Decree No.340 “On the Reorganisation of Rostelecom OJSC”† dated March 24, 2012