RELIANCE COMMUNICATIONS LTD. - RCOM AFK Sistema exclusive discussions on a potential merger

Reliance Communications Ltd has informed BSE that Reliance Communications (RCOM) and AFK Sistema have entered into exclusive discussions on a potential merger between the Indian telecom business of Sistema Shyam TeleServices Ltd. (SSTL) and RCOM through a stock swap. The discussions are indicative and non-binding in nature, and remain subject to due diligence, definitive documentation and approvals, as may be necessary. There is no certainty that any transaction will result.