Rostelekom Adr Regulatory News (RKMD)

Rostelecom launches core regional datacentre in Ekaterinburg

Moscow, Russia - November 27, 2019 - Rostelecom PJSC (MOEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, today announces that it has commercially launched its core regional datacentre in Ekaterinburg. The launch reflects the Company's strategy to develop a geographically diversified nationwide network of data centres, and supports the "Information Infrastructure" federal project as part of the "Russia Digital Economy" programme. By 2024 core datacentres are expected to be launched across all federal districts of Russia.

The construction of the Ekaterinburg data centre commenced in December 2018 through the installation of key technological equipment completed in April 2019. The installed capacity of the first section amounts to 2 Mwatt and 216 racks. Electricity provision is organized through two independent sources which reserves 100% generation capacity. The second section is expected to be launched in 2020. The total capacity of both sections will stand at 432 racks.

Pavel Kaplunov, Vice President for Cloud Services, commented:

"Historically, over 85% of overall datacentre capacity has been concentrated in Moscow and St-Petersburg. Our strategy to develop a geographically diversified network of data centres will eliminate the digital inequality across Russia, ensuring a high level of digital infrastructure for corporate and state clients. We are already seeing an increasing demand for reliable and competitive datacentres and cloud solutions from potential clients at the beginning of construction, and will be installing the customers' equipment shortly after the commercial launch."

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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 over 13.1 million users and pay-TV services to more than 10.3 million clients, over 5.5 million of which are subscribed to Rostelecom's IPTV services on a national level.

In the nine months of 2019, the Group generated RUB 242.6 billion of revenues, RUB 81.4 billion of OIBDA (33.6% of revenue) and RUB 16.4 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.