ROSTELECOM PJSC: Rostelecom leads the market for Free Call services according to the 2019 TMT Consulting rating

Rostelecom leads the market for Free Call services according to the 2019 TMT Consulting rating

Moscow, Russia - May 18, 2020 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest integrated digital service provider in Russia, today announces that according to ratings provided by TMT Consulting, an independent consulting agency (see link), Rostelecom leads the market for the 8-800 Free Call service.

According to TMT Consulting, market volume for Free Calls (8-800) in Russia grew by 4% in 2019 compared to 2018 and amounted to 8.5 billion rubles.

Rostelecom's leading position in the market equates to a 34% share of the entire Free Call service market. The company also has the largest number base, amounting to 41% of the total 8-800 number capacity allocated to operators.

The agency notes that despite the reduction in the fixed telephony market, demand for the 8-800 service remains and users of the Free Call service are typically large Federal companies. Market participants are also observing growing interest in the service from companies working in the regions with interest growing among small and medium-sized enterprises using virtual PBX services.[1]

Denis Ryabchenkov, Director of Product Management at the corporate and state segment of Rostelecom PJSC, commented: "Having access to the 8-800 number provides companies and entrepreneurs of all sizes with advantages. We are pleased that due to its wide functionality, the reliability of communication services and uninterrupted operation of the product, we are leaders in the field of providing intelligent services throughout Russia."

The free call 8-800 code is one of the most popular services provided by Rostelecom and it is run on a specialized platform. The service allows any company to organize a hotline or customer support service on the basis of a single intelligent number 8-800-xxx-xxxx. It is free of charge for customers and paid by the company at a special rate. Rostelecom has a large pool of 8-800 numbers available, including so-called "beautiful" numbers that are easy to remember.

An intelligent number can be used to organize round-the-clock "hotlines", information support services and contact centers during temporary campaigns. Convenient 8-800 numbers with repeating numbers are easy to remember and make advertising more effective. When client services or products are needed, the customer immediately recalls a simple number.

Further information is available at https://www.company.rt.ru/en/ir/news_calendar/.

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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 over 13.2 million users and pay-TV services to more than 10.4 million clients, over 5.6 million of which are subscribed to Rostelecom's IPTV services.

In the twelve months of 2019, the Group generated RUB 337.4 billion of revenues, RUB 106.5 billion of OIBDA (31.6% of revenue) and RUB 16.5 billion of net income.

The Group is the leading provider of telecommunications services to government bodies and corporates of all levels.

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.

[1] The Virtual PBX service eliminates the need for customers to buy and maintain telecommunication equipment, it is located on the provider's server and connects subscribers through the cloud. Rostelecom provides the customer with the opportunity to fully organize telephony for a business of any scale - from a startup to a large national company with a large selection of additional features, such as monitoring calls or recording telephone conversations. The owners of "Virtual PBX" have the opportunity through their personal account to independently manage their telephone network and configure it to the needs of their business.