Moscow – June 15, 2010 – Rostelecom (RTS, MICEX: RTKM, RTKMP; OTCQX: ROSYY) (the Company) today announced that Institutional Shareholder Services (ISS) has issued its recommendations to vote for the resolutions proposed at Rostelecom’s Annual General Shareholders’ Meeting (“AGM”) on June 26, 2010.

ISS recommends that Rostelecom’s shareholders vote FOR Item 7 of the AGM agenda to support the Company reorganization by merging with and into Inter-Regional Companies and OJS Dagsvyazinform. Among other things, ISS emphasized that the united Rostelecom would benefit from a strengthened credit profile, significant competitive advantages in the Russian telecoms market, as well as sound opportunities to achieve long-term growth and expand business diversifications.

ISS also recommends to vote FOR Items 8 and 9 to approve the necessary amendments to Rostelecom’s Charter. According to ISS, the Amedments ¹ 2 (Item 8) are either neutral or positive in terms of their impact on shareholders’ rights, while the Amendment ¹ 3 (Item 9) would likely result in substantially higher dividends on the Company’s preferred shares following the reorganization.

Rostelecom’s AGM will be held on June 26, 2010 at the Company’s Bekasovo Training Center (Moscow region, Naro-Fominsk district). Transport will be provided from Rostelecom’s Headquarters (14, 1st Tverskaya-Yamskaya, Moscow).

If a Company shareholder is not able to attend the AGM in person, he or she may send completed voting ballots to Rostelecom’s registrar (JSC “Obyedinennaya Registratsionnaya Kompaniya” - “United Registration Company”) no later than on June 23, 2010. Postal address: 115280, Moscow, P.O. Box 151 (for “Obyedinennaya Registratsionnaya Kompaniya”). Moscow office: 19 Leninskaya Sloboda st., Business Center Omega Plaza, 4th floor, Moscow.

The details of Rostelecom’s AGM, including the agenda and all relevant materials, are available in the AGM section of the Investor Center of Rostelecom’s website.

Institutional Shareholder Services Inc. (ISS) is the world’s leading provider of proxy voting and corporate governance services serving more than 2,000 institutional and corporate clients worldwide with its core business — analyzing proxies and issuing informed research and objective vote recommendations for more than 33,000 companies across 115 markets worldwide.