Moscow – March 16, 2011 – 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 establish 73 regional affiliates of the Company on the basis of existing affiliates of Regional Telecom Operators (RTOs) including OJSC CentreTelecom, OJSC SibirTelecom, OJSC Dalsvyaz, OJSC VolgaTelecom, OJSC North-West Telecom, OJSC Uralsvyazinform, PJSC Southern Telecommunications Company and Dagsvyazinform, which are expected to be merged with Rostelecom later in April 2011.

Seven macro-affiliates of Rostelecom will be formed to manage the newly created regional affiliates.

The new management structure is in line with Rostelecom’s nationwide operations and will ensure the efficiency of the business processes of a united Company, which is expected to take leading positions in the key segments of the telecommunications market in Russia.

Previously, the Heads of all RTOs were appointed Vice Presidents of Rostelecom to maintain continuity of business processeswithin the framework of the ongoing reorganisation.

The decision to establish the united Company by merging RTOs with Rostelecom was approved at the Annual General Meeting of Shareholders of Rostelecom on June 26, 2010.

The date of the reorganisation will be the date when the termination of activities of each of the merged entities is registered in the Unified State Register of Legal Entities.