Rostelecom OJSC: Statement re Sergey Kalugin Appointed as President of Rostelecom

  Rostelecom OJSC: Statement re Sergey Kalugin Appointed as President of
  Rostelecom

UK Regulatory Announcement

MOSCOW

             SERGEY KALUGIN APPOINTED AS PRESIDENT OF ROSTELECOM

Moscow, Russia – March 27, 2013 – Rostelecom OJSC (the “Group”) (MICEX - RTS:
RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator,
announces that its Board of Directors has approved the appointment of Sergey
Kalugin as President of Rostelecom, with immediate effect, to succeed
Alexander Provotorov who is stepping down.

Mr. Kalugin was born in Moscow on November 2, 1966. Sergey Kalugin graduated
from the Department of Economics of Lomonosov Moscow State University in 1991.

Sergey Kalugin served as CEO of OJSC National Telecommunications (“NTK”), a
Rostelecom company and Moscow’s leading broadband operator, from 2007 to 2008
and from 2009 to 2012. Mr. Kalugin has also been Managing Partner at
WebMediaGroup since 2009. From 2001 to 2007 Mr. Kalugin was CEO of OJSC
National Cable Networks. From 2000, he was also CEO of OJSC RTR-Signal. Prior
to that, Mr. Kalugin worked at JSC AB Inkombank, where he became Managing
Investment Director having started out as an economist.

Sergey Kalugin commented: “It is with a sense of great honour and
responsibility that I take up this post as President of one of the largest
telecommunications companies in Russia. Through our dedication and efficiency,
I am certain that Rostelecom faces a great future.”

Alexander Provotorov has worked for Rostelecom since August 2010. A great deal
was achieved during his stewardship of Rostelecom, including the creation of a
new united Company following the merger of regional telecoms companies
including OJSC Dagsvyazinform. During Mr. Provotorov’s tenure, the Company
also successfully carried out a project of unprecedented scale in organising
the video surveillance of the ballot and subsequent vote counting of the
Russian Presidential Elections in March 2012. The Company has also made real
progress in the development of its E-government programme by creating the
infrastructure it requires to successfully deliver the service. The Company
has also made great strides forward towards developing cloud technology
solutions, and the Group’s number of broadband subscribers has increased to 9
million, at a time when Rostelecom has also become a market leader in pay-TV
services with 6.4 million subscribers.

Alexander Provotorov added: “I am extremely proud to have had the opportunity
to work for a unique company, a trend-setter for the whole Russian
telecommunications sector. Together, we have been able to achieve great
things, which have been made possible by our team’s sense of professionalism,
self-sacrifice and responsibility.”

                                    * * *

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 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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