ROSTELECOM’S BOARD OF DIRECTORS SETS THE DATE OF ANNUAL GENERAL MEETING OF SHAREHOLDERS AND RECOMMENDS DIVIDEND PAYMENT...

Moscow, Russia – April 26, 2013 – Rostelecom OJSC (MICEX - RTS:
RTKM, RTKMP; OTCQX: ROSYY) (“the Company”), Russia’s national
telecommunications operator, announces that its Board of Directors has set the
date for the 2012 Annual General Meeting of Shareholders (the “AGM”).

 

According to the Board’s decision, the AGM will be held on June 17, 2013, at the World Trade Centre’s Congress
Centre, 12, Krasnopresnenskaya embankment, Moscow.

 

The Board also approved the record date of
April 30, 2013, for registered shareholders eligible to participate in the AGM
and entitled to receive the dividend for 2012.

 

Rostelecom’s Board of Directors recommended that the AGM approves a 2012
dividend payment of RUB 8.17 billion, or 25% of the Company’s net profit for
2012 in accordance with Russian Accounting Standards (RAS), which amounts to
23.18% of the net profit for 2012 according to the International Financial
Reporting Standards (IFRS), and consists of:

 

• RUB 4.1022 per Class A preferred share (a total of 3.05% of 2012
  net profit under RAS or 2.83% of 2012 net profit under IFRS will be
  distributed as a payment under this share class)

 

• RUB 2.4369 per ordinary share (a total of 21.95%
  of 2012 net profit under RAS or 20.35% of 2012 net profit under IFRS will
  be distributed as a payment under this share class)

 

Ivan Rodionov, Chairman of Rostelecom’s Board of
Directors, commented: “The Board of Directors supported the management’s
initiative to keep a substantial portion of the Company’s net profit for the
Company's development by allocating funds for the use of new technologies and
the modernising of network infrastructure to improve the Company’s
competitiveness and guarantee Rostelecom’s technological leadership within the
shortest timeframe.”

 

The 2013 AGM materials will be available on Rostelecom’s official
website 30 days prior to the meeting at http://www.rostelecom.ru/ir/agm/.

 

 

*   *   *

 

For more information please visit http://www.rostelecom.ru/en/ir or contact:

 

“Rostelecom
Investor Relations / Rostelecom IR” application
for iPhone and iPad is now available to download for free from the Apple App
Store via: https://itunes.apple.com/ru/app/rostelecom-investor-relations/id596370946?mt=8.

 

Investor Relations Department

Tel. [phone]

[e-mail]

 

*   *   *

Rostelecom (www.rostelecom.ru) is Russia’s largest national telecommunications
operator with presence in all Russian regions. The Group is a universal
operator and undisputable leader of broadband and pay-TV markets in Russia with
over 9.2 million fixed-line broadband subscribers and over 6.6 million pay-TV
subscribers. As Rostelecom develops its mobile data networks, its position as a
major mobile operator is growing with over 13.5 million currently subscribed to
Rostelecom’s mobile voice services. The Group is also an important innovator
that provides solutions in the field of medicine, E-Government, cloud computing
and education.

 

Rostelecom was assigned a ‘BBB-’ and ‘BB+’
international credit ratings by Fitch Ratings and Standard & Poor’s
respectively, both with a ‘Stable’ outlook. The Group generated RUB 321.3
billion of consolidated revenues, RUB 118.6 billion of OIBDA (36.9% of
revenues) and RUB 35.2 billion of net income for the twelve months ended
December 31, 2012.

 

*   *   *

Certain
statements in this press release are forward-looking statements within the
meaning of the U.S. federal securities laws and are intended to be covered by
the safe harbors created thereby.

Those forward-looking statements include, but are not
limited to:

·        
Management’s
assessment of the Company’s future operating and financial results as well as
forecasts of the present value of future cash flows and related factors;

·        
the
Company’s anticipated capital expenditures and plans to construct and modernize
its network;

·        
the
Company’s expectations as to the growth in demand for its services, plans
relating to the expansion of the range of its services and their pricing;

·        
the
Company’s plans with respect to improving its corporate governance practices;

·        
the
Company’s expectations as to its position in the telecommunications market and
the development of the market segments within which the Company operates;

·        
economic
outlook and industry trends;

·        
the
Company’s expectations as to the regulation of the Russian telecommunications
industry and assessment of impact of regulatory initiatives on the Company’s
activity;

·        
other
statements regarding matters that are not historical facts.

 

Such forward-looking statements are
subject to risks, uncertainties and other factors, which could cause actual
results to differ materially from those expressed or implied by these
forward-looking statements. These risks,
uncertainties and other factors include:

·        
risks relating to changes in political, economic and
social conditions in Russia as well as changes in global economic conditions;

·        
risks relating to Russian legislation, regulation and
taxation, including laws, regulations, decrees and decisions governing the
Russian telecommunications industry, securities industry as well as currency
and exchange controls relating to Russian entities and their official
interpretation by regulatory bodies;

·        
risks relating to the Company, including the
achievement of the anticipated results, levels of profitability and growth,
ability to create and meet demand for the Company’s services including their
promotions, and the ability of the Company to remain competitive in a
liberalized telecommunications market;

·        
technological risks associated with the functioning
and development of the telecommunications infrastructure, technological
innovations as well as the convergence of technologies;

·        
other risks and uncertainties. For a more detailed
discussion of these and other factors, see the Company’s Annual Report and the
Company’s other public filings.

 

Many of these factors are beyond the Company’s ability
to control or predict. Given these and other uncertainties, readers are
cautioned not to place undue reliance on any of the forward-looking statements
contained herein or otherwise. The Company does not undertake any obligation to
release publicly any revisions to these forward-looking statements (which are
made as of the date hereof) to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events, except as may be
required under applicable laws.