OREANDA-NEWS. On 25 April 2008 Rostelecom, Russia’s national long-distance telecommunications operator, announced the decision of the Company’s Board of Directors to recommend the following annual dividends for 2007 at the Annual General Shareholders’ Meeting:

RUB 3.8809 per preferred share. The total amount of dividends to be paid to holders of preferred shares will amount to RUB 942.4 million or 10.0% of the Company’s 2007 RAS net profit;

RUB 1.9399 per ordinary share. The total amount of dividends to be paid to holders of ordinary shares will amount to RUB 1,413.6 million or 15.0% of the Company’s 2007 RAS net profit;

The percentage of the Company’s net profit available for 2007 dividends is 25.0%. The total amount of the proposed dividends for 2007 increased by RUB 559.7 million year-on-year and amounted to RUB 2,356.0 million.

Holders of the American Depositary Receipts will receive payment in accordance with the 1:6 ratio of ADR to ordinary shares. ADR holders will receive the dividend in US dollars through their usual financial intermediary.

In accordance with the decision of the Company’s Board of Directors, shareholders of record on April 22, 2008 will be entitled to participate in the AGM and receive dividends for 2007.

On June 9, 2008, the AGM, to be held at the Renaissance Moscow Hotel located at 18/1, Olympiysky Prospect St., Moscow 129110, Russian Federation, will determine dividend payments.

Further details on dividend payment procedures will be available in the Corporate Governance section within the Investor Center of Rostelecom’s website.