Moscow – September 24, 2010 – OJSC Rostelecom (“the Company”, RTS and MICEX: RTKM, RTKMP; OTC: ROSYY) has completed the repayment following the mandatory buyback of its shares from shareholders who either voted against or did not vote on the Company’s merger with the seven Inter-regional telecommunications companies and Dagsvyazinform, as per the Annual Shareholder Meeting on June 26, 2010. The Company spent RUR 6.1 billion, (approximately US$ 194.1 million*), on the redemption of 151,113 ordinary shares of OJSC Rostelecom (representing 0.02074% of the total number of ordinary shares issued, or 0.01555% of the total issued share capital) and 70,041,903 preferred shares of OJSC Rostelecom (representing 28.84383% of the total issued preferred shares, or 7.20945% of the total issued share capital)**.

At the close of business on August 10, 2010, the Company had received requests for redemption, which complied with the applicable Russian law, for a total value of RUR 7.3 billion, (approximately US$ 235.2 million). Legally, the Company should not spend more on redemption than 10% of its net asset value as per Russian Accounting Standards, i.e. RUR 6.1 billion, (approximately US$ 194.7 million), as at March 31, 2010.

* Here and below the Bank of Russia exchange rate RUB 31.0814 per US$ 1 as at Sept.22, 2010

** The transfer of rights for the abovementioned shares is being proceeded