Moscow, August 16, 2010. CenterTelecom OJSC reports that its Board of Directors at the meeting held today has approved a Report on Shares Presented by the Shareholders of CenterTelecom for Buyback.

On June 25, 2010 the annual general shareholders meeting of CenterTelecom (AGM) adopted a decision to reorganize the company in the form of a merger of CenterTelecom and Rostelecom.  As a result, the shareholders/owners of the voting shares who voted against this decision or who failed to take part in the voting received the rights to request the company to buy back all their shares or part of the stakes they own. Shareholders’ requests for the share buyback were accepted from June 26 to August 9, 2010 inclusive. 

In accordance with the approved report, the total amount of shares which are to be bought back by CenterTelecom was 57,992,081 including 8,639,034 common shares and 49,353,047 type A preferred shares. The total amount of funds allocated for the share buyback amounts to RUB1,293,223,406.3. It makes 4.54% of CenterTelecom’s net assets as of March 31, 2010.

According to the approved report CenterTelecom's common and preferred shares are to be bought back by the company at the price of RUB22.3 per one share. Payment for the redeemed shares is to be made in cash form by September 8, 2010, inclusive.