Rostelecom OJSC: Rostelecom Financial Results under RAS for the First Quarter of 2014 Are Now Available on the Company’s

  Rostelecom OJSC: Rostelecom Financial Results under RAS for the First
  Quarter of 2014 Are Now Available on the Company’s Website

UK Regulatory Announcement

MOSCOW

 ROSTELECOM FINANCIAL RESULTS UNDER RAS FOR THE FIRST QUARTER OF 2014 ARE NOW
                      AVAILABLE ON THE COMPANY’S WEBSITE

Moscow, Russia – May 15, 2014 – Rostelecom OJSC (MOEX: RTKM, RTKMP; OTCQX:
ROSYY), Russia’s national telecommunications operator, today announces that
its financial statements for the first quarter of 2014, under Russian
Accounting Standards (“RAS”), have been made available in the “Investor
Relations” section of its corporate website.

The Company would like to draw investors’, shareholders’ and other
stakeholders’ attention to certain key points relating to the results for the
first quarter of 2014 which should be taken into account during their
analysis.

Rostelecom’s financial results under RAS for the first quarter of 2014 exclude
any contribution from its subsidiaries. The Company’s balance sheet as at
March 31, 2014, comprises only Rostelecom’s performance, but it also excludes
the contributions of its subsidiary companies.

Moreover, when analysing the trends for the first quarter of 2014 RAS results
compared to the same period of 2013, it is essential to take into account the
merger of Svyazinvest and 20 other joint-stock companies^1 with Rostelecom
held on October 1, 2013.

Rostelecom intends to publish its financial and operational results under IFRS
according to the Company’s consolidated statements for the first quarter of
2014 on May 27, 2014. These results will include contributions from Rostelecom
and its subsidiaries.

Please use the following link to access Rostelecom’s consolidated financial
and operational results under IFRS for previous reporting periods:

http://www.rostelecom.ru/ir/results_and_presentations/financials/IFRS.

                                    * * *

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

“Rostelecom Investor Relations / Rostelecom IR” application is now available
to download for free from the Apple App Store and Google Play

Investor Relations Department
Tel. +7 (499) 995 97 80
ir@rt.ru


                                    * * *

Rostelecom (www.rostelecom.ru) is one of the largest national
telecommunications operators in Russia and Europe. The Group operates in all
segments of the telecommunications market and covers more than 34 million
households.

Rostelecom is an undisputable leader of the broadband and pay-TV markets in
Russia with over 10.6 million fixed-line broadband subscribers and over 7.5
million pay-TV subscribers.

The Group generated RUB 325.7 billion of consolidated revenues, RUB 113.3
billion of OIBDA (34.8% of revenues) and RUB 24.1 billion of net income for
the 12 months ended December 31, 2013.

The Group is a market leader in providing telecommunications services to
government bodies and corporates of all levels. It is also an important
innovator that provides solutions in the field of medicine, E-Government,
cloud computing, education, security and housing & utility services.

Rostelecom was assigned ‘BBB-’ and ‘BB+’ international credit ratings by Fitch
Ratings and Standard & Poor’s respectively.

                                    * * *

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.

^1 which are either directly or indirectly controlled by Rostelecom and/or
Svyazinvest.

Contact:

Rostelecom OJSC
 
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