OREANDA-NEWS. September 7, 2012. The Board of Directors passed a resolution to proceed with the Company’s additional share issue. This move followed a decision adopted at an extraordinary general meeting of shareholders dated July 29, 2012 on increasing the Company’s charter capital by placing additional common registered uncertificated shares amounting to 561,261,664 with a par value of RUR 1 each with the rights envisaged under the Company’s Charter. The share issue is to be paid for using the proceeds and common registered shares of Bashinformsvyaz, Ingushelektrosvyaz, Central Telegraph, Chukotkasvyazinform, MMTS-9 and class A preferred shares of Central Telegraph. According to the share issue prospectus approved by shareholders, the state represented by the State Property Management Agency shall purchase 420,946,248 of the Company’s common registered uncertificated shares, whereas Rostelecom shall purchase 140,315,416 of the Company’s common registered uncertificated shares.

The board will also consider the appraisal of Svyazinvest’s shares that are to be sold by the state-owned telecommunications holding to the state, represented by the State Property Management Agency. Given that the Agreement on the Purchase of Additional Shares in the Process of Their Placement, which was stipulated between Svyazinvest and the Russian state represented by the State Property Management Agency, is a related-party party agreement subject to approval by the general meeting of shareholders, the Board of Directors pursuant to the requirements of Article 77 of the Federal Law “On Joint-Stock Companies”, on the basis of market value set the price of 1 (one) additional common registered uncertificated share of Svyazinvest sold by the latter in the course of the placement at RUR 12.26 (twelve rubles and twenty six kopecks).

The Board of Directors appointed Denis Afanasyev as head of the Management Board.

The Board also passed a resolution on other issues pertaining to the Company’s internal activities.

The following board members attended the meeting:

Mikhail Zadornov;

Yury Kudimov;

Alexander Provotorov;

Ivan Rodionov;

Vadim Semenov;

Thomas Khendel.