Moscow – February 18, 2011 – Rostelecom OJSC (“the Company”) (RTS, MICEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announced that the Russian Federal Service for the Financial Markets (FSFM) has registered the additional share issue of 2,216,163,000 ordinary shares of Rostelecom, with a nominal value of RUB 0.0025 each. The share issue will be effected through the conversion of ordinary and preferred shares of OJSC Center Telecom, OJSC Sibirtelecom, OJSC Dalsvyaz, OJSC Volga Telecom, OJSC North-West Telecom, OJSC Uralsvyazinform, OJSC Southern Telecommunications Company (RTOs) and Dagsvyazinform into Rostelecom ordinary shares, during the ongoing merger process. In addition, FSFM approved Company’s bond issues for up to RUR 31.56 bln, which will be effected through the conversion of bonds issued by the RTOs.

The decision to reorganise Rostelecom was taken by the Annual General Meeting of shareholders, held on June 26, 2010.

The documentation will be available on Rostelecom’s website in the Investor Relations section https://www.rt.ru/centr-invest/financial/fsfr in due course.

The date for the conversion of RTO and Dagsvyazinform shares and RTO bonds into Rostelecom additional ordinary shares and bonds respectively, 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.