Rostelecom OJSC: ROSTELECOM LAUNCHES 3G+ NETWORK IN THE VOLGOGRAD REGION

  Rostelecom OJSC: ROSTELECOM LAUNCHES 3G+ NETWORK IN THE VOLGOGRAD REGION

UK Regulatory Announcement

MOSCOW

           ROSTELECOM LAUNCHES 3G+ NETWORK IN THE VOLGOGRAD REGION

Moscow, Russia – May 21, 2013 – Rostelecom OJSC (MICEX - RTS: RTKM, RTKMP;
OTCQX: ROSYY) (“the Company”), Russia’s national telecommunications operator,
announces the launch of 3G+ networks in Volgograd and Volzhsky through CJSC
Volgograd GSM, a 100% subsidiary of Rostelecom. The Company plans to expand
its 3G+ networks to all regional centres in the Volgograd region. Rostelecom
subscribers will be able to experience faster mobile internet and access
modern, interactive services using their smartphones, USB modems and tablets.

Alexander Shipulin, Vice President and Director of Rostelecom’s southern
macro-regional branch, commented: “Rostelecom is gradually implementing its 3G
network construction programme, and it is now coming to the Volgograd region.
The benefits of our 3G+ network for our subscribers in the Volograd region
will include high data transfer speeds and a competitive range of tariff plans
and options.”

In light of the growing demand for mobile data transfer service, Rostelecom’s
3G+ network was installed using the modern HSPA+ technology. This technology
provides data transfer speeds of up to 21MB/s, compared to speeds of just
3.6MB/s provided by the first 3G networks. The Company plans to upgrade its
network to reach the maximum speed of up to 42MB/s in the future.

In the long-term, a modern, sustainable, efficient and multi-standard mobile
phone network will be created in the Volgograd region, which will combine the
advantages of all standards, resulting in high quality voice services and data
transfer.

At present, 120 new generation base stations have been installed in the
Volgograd region, which provides coverage for Volgograd and Volzhsky. As a
result, 3G+ network services are currently available to over 45% of the
region’s population.

3G+ networks have been built and tested in 24 Russian regions and have been
commercially launched in 17 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. A 3G+ network will be
launched in the Krasnodar Krai in summer 2013.

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 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 9.5 million fixed-line broadband subscribers and over 6.8 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 77.1 billion of consolidated revenues, RUB
28.8 billion of OIBDA (37.4% of revenues) and RUB 6.4 billion of net income
for the first three months ended March 31, 2013.

                                    * * *

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