Moscow, Russia – July26, 2012– Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that its Board of Directors is to consider selling Rostelecom’s interest in SMARTS Group PJSC (“SMARTS”) by selling its 2.95% stake in SMARTS ordinary shares back to SMARTS. A Board of Directors meeting is being held to consider the matter on August 9, 2012.

On June 29, 2012, the reorganisation of SMARTS Group was approved at its Annual General Meeting (“AGM”). As part of the reorganisation, four private limited liability companies will be formed. Rostelecom did not participate in the AGM and in accordance with Clause 1 of Article 75 of the Federal Law “On Joint Stock Companies”, Rostelecom has the right to submit all or a part of its shares for a mandatory buyback. The price of the buyback is set at RUB 40,895,000 for 1% of SMARTS ordinary shares[1]. Should Rostelecom submit the entire 2.95% stake of SMARTS ordinary shares[2]for repurchase, it will receive a total of RUB 120.6 million for the stake.

Anton Khozyainov, Senior Vice-President of Rostelecom, commented: “Rostelecom’s management has proposed the sale of our investment in SMARTS to our Board of Directors. This is in accordance with our strategy to only invest in companies where Rostelecom can participate in the running of business processes.”