0.43% of Rostelecom’s shares have been sold to Svyazinvest as part of the reorganisation process

Moscow, Russia – May 28, 2013 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that the parent company, OJSC Svyazinvest, has bought 12,644,374 (or 0.43%) of Rostelecom’s ordinary shares from Rostelecom’s subsidiary, LLC MOBITEL (“Mobitel”).    

The price of one Rostelecom ordinary share was RUB 136.05. Therefore, Mobitel received RUB 1,720,267 thousand for 12,644,374 ordinary shares. This amount was previously received by Svyazinvest as a result of Rostelecom acquiring part of Svyazinvest’s additional share issue last year.    

As a result of this deal, the amount of shares that Mobitel holds in Rostelecom has decreased to 123,787,653 or to 4.21% of ordinary shares.    

This deal is the next step of the second stage of the reorganisation process, which is taking place in compliance with a Russian Federation Presidential Decree¹ and is designed to simplify the shareholder structure and to eliminate the cross ownership of Rostelecom.