Rostelecom OJSC: Statement re ROSTELECOM LAUNCHES ITS FIRST COMMERCIAL 3G NETWORK

  Rostelecom OJSC: Statement re ROSTELECOM LAUNCHES ITS FIRST COMMERCIAL 3G
  NETWORK

UK Regulatory Announcement

MOSCOW

             ROSTELECOM LAUNCHES ITS FIRST COMMERCIAL 3G NETWORK

Moscow, Russia – November 22, 2012 – Rostelecom OJSC (the “Group”) (MICEX -
RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications
operator, announces that the Group has fully launched its first commercial 3G+
network in the Irkutsk region, through the Group’s subsidiary, Baikalwestcom
CJS (BWC). Rostelecom is planning to launch 3G networks in 26 Russian regions
in 2013.

Pavel Zaitsev, Senior Vice President of Rostelecom, commented: "Our
subsidiary, Baikalwestcom, has historically been a regional mobile market
leader, and the launch of this next-generation network will further strengthen
its position. All of our mobile subscribers in the Irkutsk region will now
benefit from a significantly enhanced user experience using our 3G+
infrastructure and our high-speed Internet access when surfing the web,
browsing social networks, and viewing video content. Customers can now access
these services anywhere using their smartphones, tablets or USB modems on
their laptops. Since the network’s test launch mobile data traffic has almost
doubled and we are confident that demand for mobile Internet will continue
growing rapidly thanks to our competitive tariff plans for this service.”

The HSPA+ technology that we used to build our first network in the Irkutsk
region, supports transmission speeds of up to 21 MB/s. The network is
therefore 3G+, as the first 3G networks in Russia only supported transmission
speeds of up to 3.6 MB/s. The Group has completed the installation of over 300
base stations. Rostelecom’s 3G+ network is now available across several of the
Irkutsk region’s cities and towns, providing access to 70% of the region’s
population. The network will be further expanded in the first quarter of 2013.

Prior to the network’s launch, Rostelecom prepared special rates and Internet
traffic packages to attract new subscribers to join the network and to reward
existing customers.

Konstantin Motlyakh, CEO of BWC, added: “Over 500,000 of BWC’s subscribers use
mobile Internet via our 2G GSM network. With the launch of our 3G+ network,
subscribers will be able to explore new possibilities using faster mobile data
transmission. The quality of the network, its capacity and transmission speed
will most definitely increase our subscriber numbers and mobile data traffic.”

Rostelecom and its subsidiaries, NCC CJSC, BWC CJSC, ETK CJSC, Sky Link CJSC,
Volgograd-GSM CJSC, AKOS CJSC and Wireless Information Technologies LLC,
provide mobile services in 59 Russian regions to over 13.5 million
subscribers.

                                    * * *

For more information please visit www.rostelecom.ru or contact:
Investor Relations Department
Tel. +7 (499) 995 97 80
ir@rt.ru

                                    * * *

Rostelecom (www.rostelecom.ru) is Russia’s largest national telecommunications
operator with presence in all Russian regions. The Group is a universal
operator and undisputable leader of broadband and pay-TV markets in Russia
with over 9 million fixed-line broadband subscribers and over 6 million pay-TV
subscribers. As Rostelecom develops its mobile data networks, its position as
a major mobile operator is growing with over 13 million currently subscribed
to Rostelecom’s mobile voice services. The Company currently has approximately
28 million local fixed-line voice subscribers and it is the leader in the
corporate and government services segment. The Group is also an important
innovator that provides solutions in the field of medicine, E-Government,
cloud computing and education.

Rostelecom was assigned a ‘BBB-’ and ‘BB+’ international credit ratings by
Fitch Ratings and Standard & Poor’s respectively, both with a ‘Stable’
outlook. The Group generated RUB 238.7 billion of consolidated revenues, RUB
94.0 billion of OIBDA (39.4% of revenues) and RUB 30.6 billion of net income
for the nine months ended September 30, 2012.

                                    * * *

Certain statements in this press release are forward-looking statements within
the meaning of the U.S. federal securities laws and are intended to be covered
by the safe harbors created thereby.

Those forward-looking statements include, but are not limited to:

  *Management’s assessment of the Company’s future operating and financial
    results as well as forecasts of the present value of future cash flows and
    related factors;
  *the Company’s anticipated capital expenditures and plans to construct and
    modernize its network;
  *the Company’s expectations as to the growth in demand for its services,
    plans relating to the expansion of the range of its services and their
    pricing;
  *the Company’s plans with respect to improving its corporate governance
    practices;
  *the Company’s expectations as to its position in the telecommunications
    market and the development of the market segments within which the Company
    operates;
  *economic outlook and industry trends;
  *the Company’s expectations as to the regulation of the Russian
    telecommunications industry and assessment of impact of regulatory
    initiatives on the Company’s activity;
  *other statements regarding matters that are not historical facts.

Such forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from those
expressed or implied by these forward-looking statements. These risks,
uncertainties and other factors include:

  *risks relating to changes in political, economic and social conditions in
    Russia as well as changes in global economic conditions;
  *risks relating to Russian legislation, regulation and taxation, including
    laws, regulations, decrees and decisions governing the Russian
    telecommunications industry, securities industry as well as currency and
    exchange controls relating to Russian entities and their official
    interpretation by regulatory bodies;
  *risks relating to the Company, including the achievement of the
    anticipated results, levels of profitability and growth, ability to create
    and meet demand for the Company’s services including their promotions, and
    the ability of the Company to remain competitive in a liberalized
    telecommunications market;
  *technological risks associated with the functioning and development of the
    telecommunications infrastructure, technological innovations as well as
    the convergence of technologies;
  *other risks and uncertainties. For a more detailed discussion of these and
    other factors, see the Company’s Annual Report and the Company’s other
    public filings.

Many of these factors are beyond the Company’s ability to control or predict.
Given these and other uncertainties, readers are cautioned not to place undue
reliance on any of the forward-looking statements contained herein or
otherwise. The Company does not undertake any obligation to release publicly
any revisions to these forward-looking statements (which are made as of the
date hereof) to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events, except as may be required
under applicable laws.

Contact:

Rostelecom OJSC