Moscow – March 29, 2011 – Rostelecom OJSC (the “Company”) (RTS, MICEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces the outcome of a tender held by the Company to provide a total of RUB 10.0 billion in overdraft credit facilities. The funds, when raised, will be used to finance the development of the Company’s operations, following the completion of the reorganisation process on April 1, 2011.

The following banks were selected through the tender to provide the following facilities:

• OJSC Sviaz-Bank to provide an overdraft facility of up to RUB 5.0 billion
• OJSC Gazprombank to provide an overdraft facility of up to RUB 3.0 billion
• OJSC Promsvyazbank to provide an overdraft facility of up to RUB 2.0 billion

The contracts, which are yet to be signed, are expected to be valid for a period of twelve months from the date of signing, with an option to extend the contracts by mutual consent for a further twelve months and for no more than three consecutive periods of twelve months in total.

The minimum interest rate to be paid for each overdraft facility has been set at 4.5% per annum and the average interest rate has been set at 4.76% per annum.

The terms of the contracts with the individual providers of the facilities provide for an option to increase the credit limit by mutual consent, but not to exceed an additional RUB 5.0 billion in aggregate.

Anton Khozyainov, Rostelecom Vice President for Economics and Finance, commented: “The fixed annual interest rates for the facilities, starting from 4.5%, combined with the possibility of prolonging the proposed new credit arrangements, demonstrate the confidence of the institutions involved in the financial solidity and operating potential of Rostelecom.”