OREANDA-NEWS. September 25, 2012. Svyazinvest (hereafter, the "Company") held a regular meeting of the Board of Directors on September 18, 2012.

Alexander Trubetskoy was elected as the presiding authority at the meeting of the Board of Directors.

The board passed a resolution to set up three committees under the Board of Directors and determined the number and personal lineup of these committees, as follows:

The Committee for Strategic Development and Corporate Management is comprised of the following members:

1. Alexander Pertsovsky;

2. Tomas Khendel;

3. Alexander Provotorov.

Vadim Semenov was appointed as the Chairman of the Committee for Strategic Development and Corporate Management.

The Audit Committed is comprised of the following members:

1. Ivan Rodionov;

2. Yury Kudimov;

3. Olga Koroleva.

Ivan Rodionov was appointed as the Chairman of the Audit Committee.

The Executive Remuneration Committee is comprised of the following members:

1. Alexander Pertsovsky;

2. Ivan Rodionov;

3. Yury Kudimov;

4. Valentina Veremyanina.

Alexander Pertsovsky was appointed as the Chairman of the Executive Remuneration Committee.

The Board of Directors took under advisement information on the rate of cost reduction for the procurement of goods, works and services per unit of production in real terms as of the end of the first six months of 2012 compared to the first six months of 2011. The rate of cost reduction stood at 18.6% with an average indicator of not less than 10%.

According to a resolution passed by the annual general meeting of shareholders dated July 20, 2012 the Company will increase its share capital by placing additional common registered non-certificated shares in the amount of 561,261,664 units with a par value of RUR 1 each with the rights envisaged by the Charter of Svyazinvest. The shares subject to placement are to be paid for using the monetary resources of Rostelecom, and also via the common registered shares of Bashinformsvyaz, Ingushelektrosvyaz, Central Telegraph, Chukotkasvyazinform, MMTS-9 and preferred registered class A shares of Central Telegraph. At today’s meeting the Board of Directors approved a transaction between Rostelecom and Svyazinvest as a result of which Rostelecom is to purchase 140,315,416 additional common registered non-certificated shares of the Company.

The Board of Directors of Svyazinvest passed a resolution to convene an extraordinary general meeting of shareholders on October 10, 2012 at 3 o’clock p.m. at the following address: 55 Plyushikha St. building 2, Moscow with the following agenda: On the approval of an interested-party transaction – an Agreement on the purchase of additional shares in the process of their placement with the Russian state represented by the State Property Management Agency.

The Board of Directors also considered other issues related to the Company’s internal activity.

The Board of Directors meeting was attended by the following people:

Mikhail Zadornov;

Yury Kudimov;

Leonid Melamed;

Alexander Pertsovsky;

Alexander Provotorov;

Ivan Rodionov;

Vadimi Semenov;

Alexander Trubetskoy;

Tomas Khendel.