EQS-Regulatory: Rostelecom to provide integrated telecommunications services to the State Automated System 'Justice'

Rostelecom to provide integrated telecommunications services to the State Automated System 'Justice'

February 14, 2017, Moscow - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), and the Information analytics centre of the state automated system (SAS) 'Justice' (FSBI IAC of the Department of Justice) have signed a contract that will see Rostelcom provide a range of services that will ensure the functioning of the Department of Justice's telecommunications infrastructure. The contract is valued at RUB 902 mln, and the contract will run until July 31, 2017.

According to the contract, Rostelecom will provide data services, rent of channels, and Internet access to a set of around 4,000 SAS 'Justice' objects that are automated in Russia and CIS countries, including Armenia, Kazakhstan, Tajikistan and Moldova. The System's data centre was launched in 2016, and comprises SAS's key subsystems and databases, which will provide robust high availability access to SAS 'Justice'' data network and Internet.

Mikhail Izotov, Director of Government Contracts, PJSC Rostelecom commented on the deal: 'Rostelecom has been providing services to 'Justice' system since 2011.This year, we have significantly extended our list of services. For example, in addition to committing to delivering data services, we are also providing Internet access equal to a total capacity of 17 GB/ps. The total data processing capacity supported by Rostelecom will be more than one and a half times higher.

'This latest development reflects the need to transfer heavy video content in real time during videoconferencing. Video conferences enable hearings and trials to be held remotely, which significantly reduces the duration of trials, and enables savings to be achieved as far as financing travel and relocation is concerned.' The project will rely mainly on Rostelecom's own network Infrastructure throughout the Russian Federation, including satellite communication channels.

Technical support and maintenance will be available via a 24/7 hotline. Rostelecom will monitor service quality on a daily basis and performance will be monitored with results available for SAS 'Justice' on a web-portal.

The Russian Federal State Automated System 'Justice' - is an information system available across the Russian Federation and designed to create a single source of information for general courts of justice and the Judicial Department's system under the Supreme Court of Russia. The system provides information and technology support to court proceedings. The platform also ensures that the necessary balance is maintained between meeting the requirements of individuals, the general public and the State in respect of the free exchange of information and essential restrictions on the dissemination of information.

* * * 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.

* * * 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 Rostelecom's PJSC (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.

Note: This announcement contains inside information in accordance with Article 7 of EU Regulation 596/2014 of November 10, 2014 Full name and position making the announcement - Ekaterina Ustinova, IR Director.