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, at a meeting held on December 15, 2010 approved the following bond placements:

- Interest-bearing non-convertible bearer bonds, placed through the conversion of the bonds of OJSC Sibirtelecom, OJSC Uralsvyazinform, OJSC Dalsvyaz, OJSC Southern Telecommunications Company, OJSC Center Telecom, OJSC Volga Telecom and JSC North-WestTelecom as part of the ongoing merger process;

- Registered non-convertible bonds, placed through the conversion of the bonds of OJSC Uralsvyazinform, OJSC Volga Telecom and OJSC Center Telecom as part of the ongoing merger process;

The Board of Directors also approved the prospectus for the interest-bearing non-convertible bonds.

The placement date for the approved and above mentioned bonds will be the date when termination of activities of each of the subsidiaries is registered in the Unified State Register of Legal Entities.