OREANDA-NEWS. August 26, 2010. Board of Directors of Rostelecom (ОТС; RTS, MICEX: RTKM, RTKMP, ROSSY) approved a report on the results of submitting claims for redemption of the Company shares owned by shareholders who enjoyed this right according to Article 75 of the Federal Law "On Joint-Stock Companies", since at the Shareholders' Meeting on 26.06.2010 they failed to vote or voted against the merger into Rostelecom of 7 intеrregional companies and OJSC Dagsvyazinform.

According to the approved report, shareholders have submitted demands for redemption 579,423 ordinary shares to the total value of 49,952,057 rubles and 88,496,665 preference shares valued totally at 7,629,297,490 rubles.

In this context demands for redemption of 182,519 ordinary shares to the amount of 15,734,963 rubles, and 84,598,692 preference shares at the total value 7,293,253,237 rubles were deemed complying with the law. Thus, the total value of shares submitted for redemption according to demands recognized as complying with the law, amounts to 7,308,988,200 rubles.

However, the funds allocated for redemption of these shares cannot exceed 10 % of the Company's net profit which as of 31.03.2010 amounted to 6,051,335,400 rubles. Pursuant to Paragraph 5 of Article 75 of the Federal Law "On Joint-stock Companies" the shares will be repurchased from shareholders pro rata to the submitted demands, so the Company will repurchase from the shareholders approximately 82.7% of the shares submitted for redemption.

Pursuant to Article 75 of the Federal Law "On Joint-Stock Companies" on August 10, 2010 Rostelecom stopped to accept demands from the Company shareholders for redemption of shares owned by them.

The redemption and payments for the shares will be performed within the period stipulated by applicable law, viz. not later than 30 days after the deadline for acceptance of written demands from the Company’s shareholders for redemption of shares owned by them, i.e. not later than September 10, 2010.