Rostelecom OJSC: Statement re ROSTELECOM LAUNCHES 3G+ NETWORK IN PERM KRAI

  Rostelecom OJSC: Statement re ROSTELECOM LAUNCHES 3G+ NETWORK IN PERM KRAI

UK Regulatory Announcement

MOSCOW

                 ROSTELECOM LAUNCHES 3G+ NETWORK IN PERM KRAI

Moscow, Russia – March 28, 2013 – Rostelecom OJSC (the “Group”) (MICEX - RTS:
RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator,
announces that the Group has launched 3G+ networks in Perm and Perm Krai.
Rostelecom subscribers will be able to use their smartphones and tablets to
access internet services, experiencing considerable new data transfer speeds.

‘Rostelecom is in the process of realising its 3G network construction
programme. By the end of Q1 2013, networks will have been launched in 10
regions across Russia,’ noted Pavel Zaitsev, Senior Vice-President of
Rostelecom. ‘The launch of this 3G+ network has great significance for the
whole of the Perm region and Rostelecom, as the Company is traditionally one
of the principal mobile operators in the region, serving around 45% of
subscribers. Now our clients in Prikamye will be able to make full use of
quality voice calls, in addition to high speed mobile internet access and a
wide variety of useful internet services on their smartphones, tablets,
lap-tops and home computers.’

Almost 400 new generation base stations have been installed in Perm Krai as a
first stage of the redevelopment. At the moment, the 3G+ network covers the
towns of Perm, Berezniki, Solikamsk, Chaykovsky, Kungur, Lysva, Chusovoy,
Krasnokamsk and other communities across the region, supplying more than 80%
of the Perm Krai population.

Rostelecom’s 3G+ network was installed using HSPA+ technology, providing data
transfer speeds of up to 21 MB/s (whereas the first 3G networks in Russia had
speeds of 3.6 MB/s).

Rostelecom is constructing 3G mobile networks in 27 Russian regions. In total,
the Company is planning to establish more than 8,000 base stations. Ericsson
and Huawei are providing technical equipment and solutions for the project.

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 13.6 million
subscribers.

                                    * * *

For more information please visit http://www.rostelecom.ru/en/ir or contact:

“Rostelecom Investor Relations / Rostelecom IR” application for iPhone and
iPad is now available to download for free from the Apple App Store via:
https://itunes.apple.com/ru/app/rostelecom-investor-relations/id596370946?mt=8.

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 6.5 million
pay-TV subscribers. As Rostelecom develops its mobile data networks, its
position as a major mobile operator is growing with over 13.5 million
currently subscribed to Rostelecom’s mobile voice services. 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 321.3 billion of consolidated revenues, RUB
118.6 billion of OIBDA (36.9% of revenues) and RUB 35.2 billion of net income
for the twelve months ended December 31, 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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