DGAP-UK-Regulatory: Rostelecom OJSC Long-Distance and International Telecommunications (spons. ADRs)

EQS-Regulatory: Rostelecom's corporate venture capital fund 'CommIT Capital' invests in 'RDP.RU'

PJSC Rostelecom / Miscellaneous - Low Priority Rostelecom's corporate venture capital fund 'CommIT Capital' invests in 'RDP.RU'

16-Nov-2016 / 13:00 CET/CEST Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS, LLC - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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ROSTELECOM'S CORPORATE VENTURE CAPITAL FUND 'COMMIT CAPITAL' INVESTS IN 'RDP.RU'

Moscow, Russia - November 16, 2016 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, today announces that its corporate venture capital fund 'CommIT Capital' has invested approximately RUB 130 million in 'RDP.RU' group, a leading Russian developer of network functions, receiving 15% of authorized capital.

'RDP.RU' is one of the leading Russian developer of network solutions for telecoms operators and corporate clients, successfully competing with the world leading vendors. The company's portfolio includes the CG-NAT, URL- filtering service, BRAS gateway, DPI, as well as Russia's first universal high-performance IP / MPLS router EcoRouter. Rostelecom actively uses the company's EcoNAT product (CG-NAT) in its networks.

As a result of this deal, Rostelecom will have the right to be involved in shaping the technology policy and strategy for 'RDP.RU' to create higher quality, advanced and marketable products.

Alexey Basov, Chairman of the Board and the Investment Committee of 'CommIT Capital', commented: 'Rostelecom is always interested in cooperation with promising companies whose competence successfully complement our business. 'RDP.RU' is a team of industry experts, creating world-class telecommunications solutions. By investing in 'RDP.RU', we are making strategic steps towards our future technological leadership and facilitating faster implementation and higher quality of offered services.'

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Rostelecom Venture Capital Fund

CommIT Capital is a wholly-owned Corporate Venture Capital Fund of Rostelecom. CommIT Capital invests in and develops companies that offer unique competencies that complement and offer synergies with Rostelecom's operations. The decision to establish Rostelecom Corporate Venture Fund was approved by the Board of Directors in May 2015. In September 2015, Rostelecom completed the first tranche of financing for the fund for a total amount of RUB 1.5 billion.

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Rostelecom (www.rostelecom.ru) is one of the largest national telecommunications operators in Russia and Europe. The Company operates in all segments of the telecommunications market and covers millions of households in Russia.

Rostelecom is an undisputable leader of the broadband and pay-TV markets in Russia with over 12.2 million fixed-line broadband subscribers and over 9.2 million pay-TV subscribers, over 4.0 million of which are subscribed to Rostelecom's IPTV services.

In the nine months of 2016 the Group generated RUB 217.0 billion of revenue, RUB 72.4 billion of OIBDA (33.4% of revenue) and RUB 8.7 billion of net income.

The Group 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, security and housing & utility services.

The Group's stable financial position confirmed by its credit ratings. Rostelecom was assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard&Poor's respectively.

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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 by the safe harbours created thereby.

Those forward-looking statements include, but are not limited to: - Assessment of Rostelecom's PJSC (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 Company operates;

- economic outlook and industry trends;

- the Company's expectations as to the regulation of the Russian telecommunications industry and assessment of impact of regulatory initiatives 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 materially from those expressed or implied by these 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 industry as well as currency and exchange controls relating to Russian entities and their official interpretation by regulatory bodies;

- risks relating to the Company, including the achievement of the anticipated results, levels of profitability and growth, ability to create and meet demand for the Company's services including their promotions, and the ability of the Company to 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.

Many of these factors are beyond the Company's ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions 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 may be required under applicable laws.

Note: This announcement contains inside information in accordance with Article 7 of EU Regulation 596/2014 of November 10, 2014 Full name and position making the announcement - Ekaterina Ustinova, IR Director.

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Language: English Company: PJSC ROSTELECOM 30 Goncharnaya st. 115172 Moscow Russia Phone: +7 (499) 999-82-83 Fax: +7 (499) 999-82-22 E-mail: rostelecom@rt.ru Internet: www.rostelecom.ru ISIN: US7785291078 Listed: Foreign Exchange(s) Moscow Category Code: MSCL TIDM: RKMD Sequence Number: 3604 Time of Receipt: 16-Nov-2016 / 12:02 CET/CEST End of Announcement EquityStory.RS, LLC News Service ---------------------------------------------------------------------------

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