OREANDA-NEWS. May 26, 2010. The board of directors of Svyazinvest (hereinafter, the Company) held a regular meeting.

The board reviewed a report issued by international investment bank Morgan Stanley, which confirmed the fair evaluation of RTO shares for the determination of share swap ratios and the buyback of shares from minority shareholders that are opposed to the reorganization of the Company by way of a merger of RTOs with Rostelecom. Earlier this evaluation was prepared by independent appraiser Ernst & Young. The board of directors of Svyazinvest took under advisement the report issued by Morgan Stanley regarding the fairness of the evaluation.

The board of directors has approved liability insurance contracts for members of the board of directors of the Company, and also liability insurance contracts for Svyazinvest, the director general, members of the board and other high-ranking officials of Svyazinvest. At the request of the chairman of the board of directors of the Company Leonid Reiman, due to specific issues related to his status as a civil servant, he will not be taking part in the insurance program.

In addition, the board of directors of the Company reviewed a report on the main operating and financial indicators of Dagsvyazinform, which was delivered by the operator’s general director G. Gamzatov. The board of directors of Svyazinvest recognized the operating results of Dagsvyazinform unsatisfactory. The report delivered by the general director of the company was also deemed unsatisfactory.

The board of directors adopted a decision to terminate the powers of member of the Management Board S. Lukash and examined a number of other issue.

The board of directors meeting was also attended by:

• Mikhail R. Butrin, managing director of VTB-Invest;

• Mikhail A. Leschenko, deputy director general of Svyazinvest;

• Konstantin V. Malofeev, managing partner of direct investment fund Marshall Capital Partners;

• Marlen J. Manasov, member of the board of directors of UBS Bank;

• Sergey V. Pridantsev, president of Comstar-UTS;

• Reiman D. Reiman, advisor to the President of the Russian Federation;

• Ivan I. Rodionov, professor of state university Higher School of Economics;

• Nikita D. Ryauzov, managing director of MDM-Bank.