March 03, 2017, Moscow - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, today announces that the Board of Directors has approved the purchase of an additional 49.9% of the share capital of LLC Data Storage Centre (operating under the SafeData brand). SafeData is Russia's largest provider of commercial data centres, traffic exchange service and content delivery. The transaction will increase Rostelecom's share participation in the SafeData Group of companies to 100%. The transaction is worth RUB 2,255 million.

The deal presents Rostelecom with the opportunity to acquire a full control over a growing business at price which does not factor in the potential from some prospective projects that SafeData is working on, including the creation of a mega Data Center in Udomlya.

Maria Florentieva, Senior Vice President Rostelecom PJSC commented: 'When we first acquired SafeData stake in 2015, we ensured that further stock purchases would be permitted through option agreements with shareholders to provide us with a controlling interest in the company. The Data centre space has become a important part of our business, and we see huge potential for the further development of this sector. Our 100% participation in SafeData provides us with more flexibility and a competitive advantage to execute a number of large scale projects.'

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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.