Rostelecom OJSC: Statement re ROSTELECOM STRATEGY MEETING

  Rostelecom OJSC: Statement re ROSTELECOM STRATEGY MEETING

UK Regulatory Announcement

MOSCOW

                         ROSTELECOM STRATEGY MEETING

Moscow, Russia – December 21, 2012 – Rostelecom OJSC (the “Group”) (MICEX -
RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications
operator, announces that it has held a Strategy Committee meeting at which
members of the Board of Directors, as well as state representatives from the
Federal Agency for State Property Management (Rosimushchestvo) and the
Ministry of Telecommunications and Mass Media of Russia were present to
discuss an updated strategy for Rostelecom. The updated strategy was prepared
by Rostelecom to cover the next 5 to 10 years, and it has been prepared in
accordance with the requirements of the Federal Agency for State Property
Management.

The Strategy Committee has recommended that the Board of Directors of
Rostelecom reviews and approves the updated strategy.

Rostelecom’s Strategy Committee consists of the following members:

  *Vadim Semenov - Chairman of the Strategy Committee, Non-Executive
    Director;
  *Sergei Azatyan - Independent Director;
  *Anton Inshutin - Independent Director;
  *Sergei Kuznetsov - Independent Director;
  *Alexander Provotorov - Executive Director.

The main purpose of the Strategy Committee is to improve efficiency and
performance of the Board of Directors by means of preliminary reviewing
certain issues falling within responsibilities of the Board of Directors, and
to prepare recommendations to the Board of Directors on issues within the
Committee’s authority.

                                    * * *

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
 
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