REG-Rostelecom OJSC Statement re ROSTELECOM PUBLISHES VIDEO MESSAGE FROM SENIOR MANAGEMENT FOLLOWING THE ANNOUNCEMENT OF ITS FIRST HALF 2012 FINANCIAL RESULTS

Fri Aug 31, 2012 2:30am EDT

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Statement re ROSTELECOM PUBLISHES VIDEO MESSAGE FROM SENIOR MANAGEMENT FOLLOWING THE ANNOUNCEMENT OF ITS FIRST HALF 2012 FINANCIAL RESULTS

ROSTELECOM PUBLISHES VIDEO MESSAGE FROM SENIOR MANAGEMENT FOLLOWING THE ANNOUNCEMENT OF ITS FIRST HALF 2012 FINANCIAL RESULTS

Moscow, Russia – August 31, 2012 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that a video version of its results for the first half of 2012, presented by Rostelecom’s management: Alexander Provotorov, President and CEO, and Pavel Zaytsev, Vice President – Sales Director, is now available on the Company’s website at:

http://www.rostelecom.ru/en/ir/results_and_presentations/financials/IFRS/1h2012.php

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For more information please visit www.rostelecom.ru or contact:

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

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Rostelecom (www.rostelecom.ru) is Russia’s national telecommunications operator and now also includes the regional incumbent telecommunications operators (CentreTelecom, SibirTelecom, Dalsvyaz, Uralsvyazinform, VolgaTelecom, North-West Telecom and Southern Telecommunications Company) and Dagsvyazinform. Rostelecom has the largest domestic backbone network (approximately 500 thousand km) in Russia. The Company holds licences to provide a wide range of telecommunications services (telephony, data, TV and value-added solutions) to residential, corporate and governmental subscribers and fourth party operators across all regions of the Russian Federation. The Rostelecom brand is one of Russia’s ten most trusted brands (source: Romir market research).

Rostelecom’s ordinary and preferred shares are traded on the MICEX-RTS (RTKM, RTKMP) stock exchange, and its depository receipts are traded over-the-counter in the United States on the OTCQX under the symbol ‘ROSYY’. Rostelecom is majority owned (55.1% of ordinary shares) by the Russian Government and has a free float of less than 40% of the outstanding ordinary shares and over 70% of the outstanding preferred shares. Rostelecom was assigned a ‘BBB-’ and ‘BB+’ international credit ratings by Fitch Ratings and Standard&Poor’s respectively, both with a ‘Stable’ outlook. Rostelecom had 27.8 million local fixed-line voice subscribers, 12.9 million mobile voice subscribers, 8.6 million fixed-line broadband subscribers and 6.2 million pay-TV subscribers at the end of 2Q 2012. The Group generated RUB 159.9 billion of consolidated revenues, RUB 64.7 billion of OIBDA (40.5% of revenues) and RUB 23.4 billion of net income for the six months ended June 30, 2012.

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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.

Rostelecom OJSC