OREANDA-NEWS. August 24, 2010. The Board of Directors of Uralsvyazinform adopted the decision to convene an extraordinary general shareholders meeting in the form of absentee voting and approved the agenda of the meeting.  In addition, a recommendation was made to the EGM to adopt a decision to pay out 9M 2010 dividends (this is the first time the company would disburse interim dividends).  The cutoff date for accepting ballot sheets is November 8, 2010.

EGM AGENDA:

On paying out 9M 2010 dividends;

On amending the Statute on the Board of Directors of the Company;

On the annual compensation payable to members of the Board of Directors of the Company which perform their duties after the annual general shareholders meeting held on June 23, 201.

The Board of Directors issued a recommendation for the extraordinary general shareholders meeting of Uralsvyazinform to adopt a decision on paying out 9M 2010 dividends in the following amounts:

0.0000000013632137 % of net profit per one class A preferred share;

0.0000000004675238 % of net profit per one common share.

As a result, a total of 25% of Uralsvyazinform’s net profit for January-September 2010 is proposed for dividend payout.

The record date for persons eligible to participate in the extraordinary shareholders meeting is September 20, 2010.  No later than October 8, 2010, ballot sheets will be forwarded to all persons eligible to participate in the extraordinary shareholders meeting.

Completed ballot sheets may be mailed to the following addresses:

11 Moskovskaya St., Yekaterinburg, 620014;

48 Nikoloyamskaya St., Moscow, 109004;

Information (materials) which is to be presented to shareholders in conjunction with the conduct of the extraordinary general shareholders meeting is available for perusal starting on October 8, 2010 on week days from 8:30 a.m. until 4:30 p.m. at the following addresses:

11 Moskovskaya St., Yekaterinburg, 620014;

68 Lenin St, Perm, 614096;

134b Lunacharskogo St., Yekaterinburg, 620110;

44 Gogolya St., Kurgan, 640000;

40 Respubliki St., Tyumen, corp. 1, 625000;

161 Kirova St., Chelyabinsk, 454000;

3 Kominterna St., Khanty-Mansiisk, 628011;

2 Matrosova St., Salekhard, 629008;

48 Nikoloyamskaya St., Moscow, bldg. 2, 109004;

And also on the corporate website of Uralsvyazinform at www.ir.u-tel.ru.

As announced earlier by the Chairman of the Board of Directors of Uralsvyazinform, and general director of Svyazinvest Evgeny Yurchenko, the decision to pay out interim dividends may be regarded as “an incentive, and an additional reward that goes to the shareholders that supported the reorganization of the group of companies as a merger with Rostelecom, i.e. those that did no present their shares for buyback”.

As reported earlier, on June 23, 2010 the annual general shareholders meeting of Uralsvyazinform adopted a decision in favor of reorganization by merging with Rostelecom.  By law, the shareholders that vote against the adoption of such a decision or fail to participate in the voting are vested with the right to demand the company to buy back all or part of the shares they own.  The deadline for accepting share buyback demands expired on August 9, 2010.  The total number of shares subject to buyback is equal to 715,189,119 shares or 1.78% of the charter capital of Uralsvyazinform.