Rostelecom — AGM Information 2018

Dec 24, 2018

ROSTELECOM PJSC (RKMD)

24-Dec-2018 / 13:03 MSK Dissemination of a RegulatoryAnnouncement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

ROSTELECOM ANNOUNCES RESULTS OF EGM

Moscow, Russia - December 24, 2018 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, today announces the results of its EGM, which was held on December 24, 2018.

The EGM approved that the Company's interim dividend amounting to RUB 6.961 billion, is to be paid in cash, as follows:

• * RUB 2.5 per Class A preferred share;
• * RUB 2.5 per ordinary share.

The shareholders approved January 13, 2019 as the record date for receiving the interim dividend for the nine months of 2018.

The shareholders also elected the following to Rostelecom's Board of Directors:

• 1. Aganbegyan Ruben;
• 1. AuzanAlexander;
• 1. DmitrievKirill;
• 1. Zlatopolsky Anton;
• 1. IvanovSergei; 6. NikiforovNikolay;
• 1. NoskovKonstantin;
• 1. Oseevskiy Mikhail;
• 1. PoluboyarinovMikhail;
• 1. SemenovVadim;
• 1. Yakovizkiy Alexei.

In conformity with Rostelecom's Charter, the Board of Director consists of 11 members.

PAORostelecom is the largest digital service provider, operating in all segments of the telecommunications market and covering millions of households in Russia. Rostelecom is an undisputable leader of the broadband and pay-TVmarkets in Russia with over 13.0 million fixed-line broadband subscribers and over 10.1 million pay-TVsubscribers, over 5.1 million ofwhich are subscribed to Rostelecom's IPTVservices on the national level.

* * *

In the nine months of 2018, theGroup generated RUB233.0 billion of revenues,RUB74.9 billion ofOIBDA(32.1%of revenue) and RUB12.7 billion of net income.

TheGroup is a market leader in providing telecommunications services to government bodies and corporates of all levels.

Rostelecom is an important innovator that provides solutions in the field of E-Government, cloud computing, healthcare, education, securityand housing &utility services.

TheGroup's stable financial position confirmed byits credit ratings.Rostelecom was assigned 'BBB-' and 'BB+' international credit ratings byFitch Ratings and Standard&Poor's respectively, and AA(RU) byACRA.

* * *

Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and intended to be covered bythe safe harbours created thereby.

Those forward-looking statements include, but are not limited to:

• Assessment of PAO Rostelecom's (the Company) future operating and financial results as well as forecasts of the present value of future cash flows and related factors;
• The Company's plans to take ownership stakes in other organisations;
• the Company's anticipated capital expenditures and plans to construct and modernize its network;
• the Company's expectations as to the growth in demand for its services, plans relating to the expansion of the range of its services and their pricing;
• the Company's plans with respect to improving its corporate governance practices;
• the Company's expectations as to its position in the telecommunications market and forecasts on the development of the market segments within which the Companyoperates;
• economic outlook and industrytrends;
• the Company's expectations as to the regulation of the Russian telecommunications industryand assessment of impact of regulatoryinitiatives on the Company's activity;
• other statements regarding matters that are not historical facts.

Such forward-looking statements are subject to risks, uncertainties and other factors,which could cause actual results to differ materiallyfrom those expressed or implied bythese forward-looking statements. These risks, uncertainties and other factors include:

• risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions;
• risks relating to Russian legislation, regulation and taxation, including laws, regulations, decrees and decisions governing the Russian telecommunications industry, securities industryas well as currencyand exchange controls relating to Russian entities and their official interpretation by regulatorybodies;
• risks relating to the Company, including the achievement of the anticipated results, levels of profitabilityand growth, abilityto create and meet demand for the Company's services including their promotions, and the abilityof the Companyto remain competitive in a liberalized telecommunications market;
• technological risks associated with the functioning and development of the telecommunications infrastructure, technological innovations as well as the

convergence of technologies;

other risks and uncertainties. For a more detailed discussion of these and other factors, see the Company's Annual Report and the Company's other public filings.

Manyof these factors are beyond the Company's abilityto control or predict.Given these and other uncertainties, readers are cautioned not to place undue reliance on anyof the forward-looking statements contained herein or otherwise. The Companydoes not undertake anyobligation to release publiclyanyrevisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances upon the annual report publication or to reflect the occurrence of unanticipated events, except as maybe required under applicable laws.

ISIN: US7785291078 Category Code:MSCH TIDM: RKMD LEICode: 2534001D752JPNM0H170 Sequence No.: 6991 EQS News ID: 761865

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