Moscow, Russia – December 2, 2011 – Rostelecom OJSC (MICEX & RTS: RTKM, RTKMP; OTCQX: ROSYY) (“The Company”), Russia’s national telecommunications operator, today announces that it has signed an agreement with Yota, the Russian mobile broadband provider, to jointly develop and utilise fourth-generation wireless networks (4G). The agreement was signed by Alexander Provotorov, President of Rostelecom, and Denis Sverdlov, General Director of Yota.

The agreement will facilitate the development and expansion of advanced communications technologies in the Russian Federation, including the latest 4G-LTE system. Both companies will make full use of each other’s telecommunications infrastructures and advanced telecommunications services will be made more accessible to Russian residents.

As part of the agreement, Rostelecom will have the right to use Yota’s wireless networks and to provide customers with telecommunications services as a Mobile Virtual Network Operator (MVNO).  The agreement will also provide Rostelecom with access to Yota’s existing telecommunications equipment sites and its wire communications channels at these sites. In return, Yota will utilise Rostelecom’s wire communications channels at their telecommunication equipment sites, it will gain access to Rostelecom’s Internet connection and inter-city backbone links and the Company’s existing telecommunication equipment sites and data centres.

Alexander Provotorov, President of Rostelecom, commented: “The joint development and utilisation of our respective telecommunications infrastructures will enable us to build our 4G networks much sooner than otherwise anticipated, and both capital expenditure and operating expenses will be lower. We will therefore be able to provide 4G network services in the near future and more people across Russia will have access to the network.”

Denis Sverdlov, General Director of Yota, added: “Rostelecom and Yota customers will derive great benefit from the efficient deployment of our LTE networks.”