Moscow – June 1, 2009 – Rostelecom (NYSE: ROS; RTS, MICEX: RTKM, RTKMP), Russia’s national telecommunications operator, today announced the results of its Annual General Shareholders’ Meeting (AGM) held on May 30, 2009, as well as the decisions of the new Board of Directors.

At the AGM, shareholders voted to approve the following items:

 ·  Approval of the Company’s annual report, annual financial statements in accordance with Russian Accounting Standards (RAS), including profit and loss statement of the Company, as well as distribution of profit for 2008 fiscal year as follows:

  o  RUB 4,950,435,000 or 70% of net profit to increase the Company’s equity;

  o  RUB 2,121,622,000 or 30% of net profit to be distributed as dividends for 2008.

The annual dividends for 2008 were declared as follows:

  o  RUB 2.9124 per preferred share. The total amount of dividends to be paid to holders of preferred shares will amount to 10% of 2008 RAS net profit;

  o  RUB 1.9410 per ordinary share. The total amount of dividends to be paid to holders of ordinary shares will amount to 20% of 2008 RAS net profit.

Dividends will be disbursed to shareholders included into the list of persons entitled to receive dividends in conformity with the shareholders’ register as of April 14, 2009, as follows:

  o  by transfer to shareholders’ bank accounts (the Company bears expenses associated with dividend payment, and shareholders bears expenses associated with dividend receipt);

  o  by postal order (the Company bears expenses associated with dividend payment, and shareholders bears expenses associated with dividend receipt);

  o  by payment through the Company’s cashiers (for Rostelecom employees only).

·  Members of the new Board of Directors were elected:

  1. Vladimir Bondarik, Deputy General Director of Svyazinvest;

  2. Sergei Kuznetsov, Member of Independent Directors’ National Register of the Russian Union of Industrialists and Entrepreneurs;

  3. Mikhail Leshchenko, Adviser to Minister of Communications and Mass Media of Russia;

  4. Alexey Lokotkov, Deputy General Director of Svyazinvest;

  5. Konstantin Malofeev, Managing Partner of MarCap Advisors Limited;

  6. Alexander Provotorov, First Deputy General Director of Svyazinvest;

  7. Ivan Rodionov, Professor of State University Higher School of Economics;

  8. Viktor Savchenko, Deputy General Director of Svyazinvest;

  9. Yelena Umnova, Deputy General Director of Svyazinvest;

  10. Maxim Tsyganov, General Director of KIT Finance Investment Bank (LLC);

  11. Yevgeny Yurchenko, General Director of Svyazinvest.

·  Members of the Audit Commission were elected:

  1. Lyudmila Arzhannikova, Head of Division for Coordination of Liason with Regulating and Overseeing Bodies of Medium-Term Planning Department of Svyazinvest;

  2. Mikhail Batmanov, Deputy Director of Department - Head of Division of Corporate Governance and Legal Department of Svyazinvest;

  3. Svetlana Bocharova, Head of Tax Division of Accounting, Tax and Statistics Department of Svyazinvest;

  4. Bogdan Golubitsky, Deputy Director of Economics and Finance Department of Svyazinvest;

  5. Olga Koroleva, Chief Accountant of Svyazinvest.

·  ZAO KPMG was approved as the Company’s external auditor for 2009 fiscal year.

·  The restated Company’s Charter was approved.

·  The restated Company’s Regulations on the General Shareholders’ Meeting were approved.

·  The restated Company’s Regulations on the Board of Directors were approved.

·  The Amendments ¹ 1 to the Company’s Regulations on the Management Board were approved.

·  The related party transaction was approved the subject-matter of which is the assets and services whose cost amounts to more than two (2) percent of the Company’s balance value of the assets pursuant to the Company’s financial statements as of the last reporting date, namely the Partnership Agreement between ANO “Organizing Committee of the XXII Olympic Winter games and XI Paralympic Winter Games of 2014 in Sochi”, OJCS “Rostelecom” and OJSC “Mefagon”.

·  Directors’ remuneration for the period they served as the members of the Company’s Board of Directors were approved in line with the Regulations on the Board of Directors.

At the Board of Directors’ meeting held after the AGM, Yevgeny Yurchenko, General Director of Svyazinvest, was elected as Chairman of the Company’s Board of Directors, and Alexander Provotorov, First Deputy General Director of Svyazinvest, was elected as Deputy Chairman of the Board.