Rostelecom (NYSE: ROS; RTS, MICEX: RTKM, RTKMP), Russia's national long-distance telecommunications operator, today announced the results of its Annual General Shareholders' Meeting held on June 25, 2005.

At the meeting, shareholders voted to approve the following items:

• Approval of the Company's annual report, annual financial statements in accordance with Russian Accounting Standards (RAS), including profit and loss statement of the Company, and distribution of profits and losses for the 2004 fiscal year.
• Declaration of the annual dividends for 2004:
• RUR 2.9738 per preferred share. The total amount of dividends to be paid to holders of preferred shares will amount to RUR 722.1 million, or 10.0% of 2004 RAS net profit;
• RUR 1.4593 per ordinary share. The total amount of dividends to be paid to holders of ordinary shares will amount to RUR 1,063.4 million, or approximately 14.7% of 2004 RAS net profi

Dividends on ordinary and preferred shares will be disbursed starting from July 15, 2005 to December 15, 2005. The dividend payment procedure is determined in conformity with the shareholders' register as follows:

• by transfer to shareholders' bank accounts (bank charges deducted);
• by postal order (postal costs deducted);
• by payment through the Company's cashiers (for Rostelecom employees only).

• Election of the new Board of Directors:

1.        Stanislav Avdiyants Executive Director — Director for Economic and Tariff Policies of Svyazinvest

2.        Valery Degtyarev General Director of Professional TeleCommunications

3.        Dmitry Yerokhin General Director of Rostelecom

4.        Alexander Kiselev Undersecretary of the Minister for Information Technologies and Communications of the Russian Federation

5.        Sergei Kuznetsov First Deputy General Director of Svyazinvest

6.        Irina Ragozina Director of Corporate Governance Department of Svyazinvest

7.        Vitaly Slizen Director of the Department for state policy on information and communication technologies of the Ministry of Information Technologies and Communications of the Russian Federation

8.        Mikhail Slipenchuk General Director of METROPOL Investment Financial Company Ltd.

9.        Natalia Terentyeva Risk Manager of Wimm-Bill-Dann Foods

10.     Yevgeny Chechelnitsky Deputy Head of the Federal Communications Control Service

11.     Valery Yashin General Director of Svyazinvest

• Members of the Audit Commission were elected:

1.        Gennady Kovalenko Head of division of the Legal Department of Svyazinvest

2.        Svetlana Sinadskaya Head of division of the Department of Economic and Tariff Policies of Svyazinvest

• LLC «Ernst and Young» was approved as the Company's external auditor for 2005 fiscal year RAS financial statements.
• The restated Company's Charter was not approved because a great number of registered AGM participants did not vote.
• The restated Company's Regulations on the Board of Directors were approved.
• The restated Company's Regulations on the Management Board were approved.

Directors' remuneration for the period they served as the members of the Company's Board of Directors as well as reimbursement of the expenses incurred owing to their service as the members of the Company's Board of Directors were approved.