Moscow, Russia – July 26, 2011 – Rostelecom (the “Company”) (MICEX: RTKM, RTKM-002D - RTKM-017D, RTKMP; RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that it expects to merge all issues of its ordinary shares during a period of 14 calendar days, commencing July 28, 2011.

During this period, the 16 new lines of Rostelecom ordinary shares[1]that were registered with the Federal Service for Financial Markets (‘FSFM’) on April 28, 2011, will be merged into a single security together with the main issue of Rostelecom ordinary shares[2].

The merger of all 17 issues of Rostelecom ordinary shares, in the registry of owners of registered securities and in the nominal holders’ record books, will take place once the FSFM notification regarding the cancellation of individual number (code) of additional issue of securities has been received and after notification has been passed to the registrar and to the nominal holders. At this stage, the individual numbers of each registered issue and the tickers of Rostelecom shares will be changed. These changes will be reflected on each owners’ accounts in-line with each nominal holders and stock exchanges’ individual operating procedures. The number of unified single ordinary shares will correspond exactly to the number of ordinary shares prior to the merger.

Rostelecom ordinary shares are expected to commence trading under a single RTKM ticker on MICEX within 3 days of receiving the appropriate notification from the FSFM. Before the trading of securities under the unified single ticker commences, the ordinary shares will continue to trade independently under the same tickers as they have done since April 28, 2011. A suspension in the trading of Rostelecom shares may follow, and if it does, it is expected that it would not exceed one trading day.

Following the completion of the merger of share issues, one issue of Rostelecom ordinary shares (RTKM) and one issue of preferred shares (RTKMP) will be traded on MICEX.

The newly issued Rostelecom ordinary shares have been traded on RTS along with the previously issued shares under a single RTKM symbol since May 4, 2011.

The merger of the separate depositary receipt issues, for both the newly issued Rostelecom ordinary shares and the shares relating to the previous issue, will be finalized once the merger of the ordinary shares has been completed.

[1]MICEX: RTKM-002D-RTKM-017D; RTS: RTKM

[2]MICEX. RTS: RTKM