Moscow, Russia – February 29, 2012 – Rostelecom OJSC (MICEX & RTS: RTKM, RTKMP; OTCQX: ROSYY) (“the Company”), Russia’s national telecommunications operator, today announces that it has completed the acquisition of a 100% stake in Enter LLC (“Enter”), a broadband Internet services provider to individual subscribers in Barnaul, Novokuznetsk and Tyumen, for a total cash consideration of RUB 305 million.

The acquisition of Enter reflects Rostelecom’s strategy to increase its subscriber base and modernise its network infrastructure. The deal also serves as an alternative to capital expenditure in Enter’s regions, as it provides Rostelecom with access to Enter’s modern network and it provides the Company with the technical ability to offer a broader range of services, including IPTV services to Enter’s existing subscribers and more modern and high-speed communications services to Rostelecom customers.

Enter’s network infrastructure was built in 2010 and it is among the most modern networks in the three cities it serves. The network is built using Metro Ethernet technology and has fibre-optic communications lines that exceed 480 km in length. The network’s technical scope covers around 2,600 multi-storey buildings passed, or around 80% of all multi-storey buildings in Barnaul and over 50% of the multi-storey buildings in Novokuznetsk.