Moscow – April 27, 2012 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announced its audited consolidated[1]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[2]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[3] of RUB 82.8 billion, representing 28% of consolidated revenues

Net debt[4]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.

“Our capital expenditure accounted for 28% of Group revenue, which is in line with our forecast to be higher than the 20% average capex level that we projected for 2011-2015. This reflected our effort to actively modernise our broadband Internet networks, as well as to develop 3G networks in our priority regions. By changing ourselves and growing our ambitions, we are changing the competitive environment around us. We are on track towards achieving our goal of becoming the leading telecoms operator by revenue and by the number of subscribers. Rostelecom operates in markets with great potential and we aim to capitalise on this potential to create value for our shareholders.”

Anton Khozyainov, Senior Vice President and Chief Financial Officer of Rostelecom, added: “Our financials speak for themselves. Total revenue is up by 7%, we have OIBDA growth of 11%.There has been a 47% increase in net profit to RUB 46.1 billion which is the highest level among peers. We are maintaining a comfortable level of mainly ruble-denominated debt and we are actively growing our broadband and pay TV subscriber bases.”    

FINANCIAL SUMMARY

 [1] 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

2Here and below, please refer to Attachment 1 to this statement for a full definition of OIBDA

3Here and below, capital expenditure (“CAPEX”) comprises cash spent on purchase of property, plant and equipment and intangible assets

4Here and below, net debt is calculated as the sum of long-term loans and short-term borrowings minus cash and cash equivalents and short-term investments

**PLEASE REFER TO THE ATTACHED PDF DOCUMENT FOR THE FULL RESULTS PRESS RELEASE**

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Conference call

Rostelecom will host a conference call today at

8.00 AM (ET) / 1.00 PM (UK) / 2.00 PM (CET) / 4.00 PM (MOSCOW).

Participants may access the call by dialling the following numbers:

UK/ International:           +44 20 8515 2302
US:                               +1 480 629 9835

A replay of the conference call will be available on the Company’s website https://www.old.rt.ru/en/centr-invest/financial/IFRS/detail.php?SECTION_ID=1091 in due course.

An electronic copy of this press release is also available on the Company’s website at https://www.old.rt.ru/en/centr-invest/financial/IFRS/detail.php?SECTION_ID=1091.                          

FOR MORE INFORMATION PLEASE CONTACT:

IR department

Tel. +7 (499) 995-97-80

ir@rt.ru