OREANDA-NEWS. February 28, 2012. Rostelecom OJSC (MICEX & RTS: RTKM, RTKMP; OTCQX: ROSYY) (“the Company”), Russia’s national telecommunications operator, today announces that it has signed an agreement with Euroset, Russia’s largest mobile communications retailer, to establish unified conditions for cooperation between the companies to sell mobile equipment and services.

Euroset’s shops will provide a full range of services for mobile voice subscribers of Rostelecom, its subsidiaries and also SkyLink in the 44 regions, in which they operate. Euroset will take on new subscribers for Rostelecom, offer tariff plans, receive payments and sell devices under the Rostelecom brand, including USB modems for mobile data transmission. Rostelecom will gradually expand the range of its branded telecommunication equipment.

Pavel Zaitsev, Vice President and Director for Commerce of Rostelecom, commented: “Under this agreement, Rostelecom and our subsidiaries were able to establish unified conditions for cooperation with Russia’s largest mobile retailer. It is very important that our customers receive all the services they need, in locations convenient for them. We believe that the cooperation with Euroset will facilitate further growth of our subscriber base in all regions where we operate.”

Victor Lukanin, Vice President for Commerce at Euroset, added: “At Euroset, we aim to provide the highest level of customer service and that is why major telecoms players trust us. The cooperation with Rostelecom will enable us to significantly expand the range of the latest devices and services offering in our stores.”

Rostelecom and its subsidiaries operate GSM-900/1800 networks to provide mobile services in 30 Russian regions under the regional brands Utel, NCC, BWC, ETK, AKOS, Aline-GSM, Volgograd-GSM, Orenburg-GSM, which are expected to be consolidated under the single brand of Rostelecom by the end of 2012. SkyLink operates a CDMA-450 network to provide mobile services in 27 Russian regions.

Rostelecom and its subsidiaries, excluding SkyLink, have a total of 12.7 million mobile voice subscribers as at September 30, 2011.