Moscow, Russia – August 3, 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 has noted the Russian Federal Service for Financial Markets’ (‘FSFM’) approval of the cancellation of the individual numbers (codes) of the 16 additional issues of ordinary Rostelecom shares (RTKM-002D - RTKM-017D[1]).

Following the receipt of the notification of the cancellation of codes, it will be passed to the registrar and to nominal holders. At this stage, the individual numbers of each registered additional issue and the respective tickers will be merged with the main issue of Rostelecom ordinary shares (RTKM[2]). These changes will be reflected on each owners’ accounts in-line with each nominal holders and stock exchanges’ individual operating procedures. The total 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 following the receipt of the 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[3]) 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]Registered numbers 1-01-00124-À-002D - 1-01-00124-À-017D

[2]Registered number 1-01-00124-À

[3] Registered number 2-01-00124-À