First 100,000 CCTV cameras - Rostelecom's smart cloud video surveillance for households gains momentum

Moscow, Russia - April 15, 2019 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that it has sold 100,000 cameras since the video surveillance service for households was launched in the market. The solution helps householders monitor their homes remotely from anywhere as long as they can access the Internet.

Rostelecom's video surveillance system is a proprietary cloud solution with a smart control system and robust security system for sensitive data. Rostelecom's solution encrypts data along the entire transmission path - from cameras to the Company's data centers.

In order to use this service, clients only need to acquire an off-the-shelf solution, which includes a digital video camera (HD or FullHD) with infrared illumination, enabling properties to be monitored in complete darkness; cameras also have a wide view angle, a built-in microphone and a motion sensor. The Push-to-talk function transmits voice messages, enabling users to contact their family members, when their smartphones are in silent mode.

The system can be used to deliver indoor and outdoor video surveillance of properties as well as their gardens and driveways. Clients can install, activate and customize camera displays and their output independently.

An intuitive web-interface and a free mobile app provides a simple and user-friendly live online surveillance service. Customers are able to control more than one smart CCTV camera remotely across multiple locations, anywhere in Russia. A cloud-based platform stores and processes video files in an archive facility for between 7 and 30 days (depending on the tariff plan). An automatic video recording is provided when a sensor is triggered or camera view is overlapped. Clients can also arrange online broadcasting of recordings or provide access to other users via a web link. In case of interruptions in Internet access, video image does not disappear and is automatically recorded on a SD card.

Diana Samoshkina, vice president for the mass-market business unit, commented: "The ecosystem we are creating within Rostelecom comprises services and platforms for households and families and covers almost any need they may have. The desire for safety and security for loved ones is a basic human need and the most common source of stress. Rostelecom's video surveillance service gives customers piece of mind by enabling them to rapidly and efficiently check up on their children, parents, monitor repair works at home or even watch their pets. We are pleased to see the great interest from our clients in this simple and user-friendly smart digital solution, which will free them from daily concerns."

Rostelecom intends to expand its partnerships with leading manufacturers of CCTV cameras in order to ensure that their equipment synchronizes with the "Video Surveillance" service. Dahua Technology has already developed the first IMOU cameras, which are compatible with Rostelecom's cloud "Video Surveillance" service.

The comprehensive off-the-shelf solution "Smart Home. Video Surveillance" is available for orders at www.rt.ru or Rostelecom's sales and maintenance points. The service is compatible with any Internet network, and also works over Wi-Fi.

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PJSC Rostelecom is the largest digital service provider, operating in all segments of the telecommunications market in Russia, it serves millions of households, the state and private enterprises across the country.

Rostelecom is Russia's undisputed market leader, providing high-speed Internet access to 12 million families and pay-TV services to 10.1 million families, over 5.2 million of which are subscribed to Rostelecom's IPTV services on a national level. Rostelecom's MVNO base is over 1.2 million users. The Company develops digital solutions for smart homes, online education, telemedicine and other services.

The Group is also the leading provider of telecommunications services to government bodies and corporates of all levels with more than 1.0 million legal entities currently using Rostelecom's high-speed Internet services and VPN.

In the twelve months of 2018, the Group generated RUB 320.2 billion of revenues, RUB 100.9 billion of OIBDA (31.5% of revenue) and RUB 15.0 billion of net income.

Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data centers and cloud computing, biometry, healthcare, education and housing & utility services.

The Group's stable financial position is confirmed by its credit ratings. Rostelecom has been assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard&Poor's respectively, and AA(RU) by ACRA.

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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 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 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.