Moscow – December 16, 2010 – Rostelecom OJSC (“the Company”) (RTS, MICEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announced that its Board of Directors has approved the decision to increase the Company’s share capital through an issue of additional 2,216,163,000 ordinary shares (‘share issue’). The decision was taken at a meeting of the Board of Directors, held on December 15, 2010.

The purpose of the share issue is to provide the additional Rostelecom ordinary shares necessary to enable the conversion of ordinary and preferred shares of OJSC Center Telecom, OJSC Sibirtelecom, OJSC Dalsvyaz, OJSC Volga Telecom, OJSC North-WestTelecom, OJSC Uralsvyazinform, OJSC Southern Telecommunications Company and OJSC Dagsvyazinform into Rostelecom ordinary shares during the ongoing merger process.

During the meeting on December 15, 2010, the Board of Directors also approved additional decisions related to the issue of additional shares and approved the prospectus for the share issue.

The placement date for the issued shares will be the date when termination of activities of each of the subsidiaries is registered in the Unified State Register of Legal Entities.