Moscow – January 17, 2011 – Rostelecom OJSC (“the Company”) (RTS, MICEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announced that it has submitted the documentation for the registration of the additional share issue of the Company to the Russian Federal Service for the Financial Markets (FSFM). The submission is a step in the reorganisation of Rostelecom through the merger and integration of seven regional telecom operators (“RTOs”) and OJS Company of Telecommunication and Information of the Republic of Dagestan (“Dagsvyazinform”) with Rostelecom. The decision to reorganise the assets was taken by the Annual General Meeting of shareholders, held on June 26, 2010.

The documentation submitted to the FSFM comprises the Prospectus for 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 and Dagsvyazinform into Rostelecom ordinary shares, during the ongoing merger process.

In addition, Rostelecom has submitted documentation for the registration of bond issues, which will be effected through the conversion of bonds issued by the RTOs.

In accordance with current Russian legislation, the review of the documentation can take up to 30 days. The documentation will be available on Rostelecom’s website in the Investor Relations section following the registration https://www.rt.ru/centr-invest/financial/fsfr/.

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.