Rostelecom (NYSE: ROS; RTS, MICEX: RTKM, RTKMP), Russia’s national long-distance telecommunications operator, today announces that the Moscow arbitration court has ruled on the issue brought by Rostelecom to the Federal Tax Service of Russia’s ? 7 Interregional Inspectorate for the largest taxpayers regarding the improper claims for the fiscal year 2003 in the amount of 3.47 billion rubles.

According to the court decision, tax claims to Rostelecom in the amount of 1.27 million rubles will remain in force. Thus, the Company’s issue has been upheld for 99.98% from the total amount claimed by the tax authorities.