Moscow– May 21, 2013 – Rostelecom OJSC (the “Group” and the “Company”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announced its unaudited IFRS consolidated financial results for the first quarter ended March 31, 2013.

FIRST QUARTER FINANCIAL HIGHLIGHTS

When analysing our year-on-year performance for the first quarter, it is important to acknowledge the one-off income and expenditure (“the one off”) recorded during the first quarter of 2012.

Consolidated revenue up 3% year-on-year to RUB 77.1 billion (excluding one-off);

OIBDA^[1]of RUB 28.8 billion with an OIBDA margin of 37.4% (36.9% in 2012);

Net income of RUB 6.4 billion, which reflects the absence of Rostelecom’s equity share in Svyazinvest’s net profit;

CAPEX^[2]of RUB 24.9 billion, representing 32.3% of consolidated revenues, primarily due to contractual expenses in 2012, including those relating to building mobile networks;

Net debt^[3]of RUB 206.3 billion with a net debt / annualised OIBDA^[4]ratio of 1.8x as of March 31, 2013.

Sergey Kalugin, President of Rostelecom, commented: “Our results for the first quarter of 2013 reflect the overall business development trends seen during the first two months of my tenure. Rostelecom leads the market when it comes to performance indicators such as the rate at which customers are subscribing to optic broadband networks and interactive TV services, which are the industry’s key areas of growth. We are also rolling out mobile data networks and are actively investing in network upgrades, however it is too early to talk about the impact new products are going to have on the dynamics of the Group's revenue. Moreover, as the Company has already warned, these investments will impact profitability in the medium term, and this is already noticeable.

We are working on a number of initiatives which will substantially improve our competitive position and our investment case. We have the largest communications network in Russia, but it is in need of modernisation. We also need to introduce new products and services, and we plan to make significant improvements to our customer service practices. Much also needs to be done to improve operational efficiency, and we are assessing our corporate governance procedures. We also plan to change our corporate culture, and increase our employees’ engagement in Rostelecom’s common goal, which is to combine the most attractive packages possible, with high levels of customer service.”

^[1]Here and below, please refer to Attachment 1 of this statement for a full definition of OIBDA.

^[2]Here and below, capital expenditure (“CAPEX”) comprises cash spent on the acquisition of fixed and intangible assets.

^[3]Here and below, net debt is calculated as the sum of long-term loans and short-term borrowings minus cash and cash equivalents and short-term investments.

^[4]OIBDA for the past 12 months.