SOURCE: Golden Telecom

January 19, 2007 13:48 ET

Golden Telecom Continues Consolidation of Regional Telecommunications Assets

MOSCOW -- (MARKET WIRE) -- January 19, 2007 -- Golden Telecom, Inc. ("Golden Telecom" or the "Company") (NASDAQ: GLDN), a leading facilities-based provider of integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States ("CIS"), today announces that following its regional expansion strategy it has purchased the telecommunications assets and acquired two alternative operators in Yekaterinburg, Nizhny Novgorod, the fourth and the fifth largest cities in Russia, and Cheboksary, with a combined population of 3.0 million. The total purchase price consideration amounted to approximately $1.2 million.

In Yekaterinburg, Golden Telecom purchased the telecommunications assets of OAO Uralkhimmash ("Uralkhimmash") and OOO Les-Transit ("Les-Transit").

The telecommunications assets of Uralkhimmash are used to provide local fixed-line services on the Uralkhimmash plant premises and in the surrounding residential area.

Les-Transit is a residential Internet services provider. The company's network, which is approximately 5.5 kilometers long, covers two residential districts in Yekaterinburg.

Golden Telecom acquired a 100% interest in OOO Vitus ("Vitus"), a local fixed-line operator providing telecommunication services to Termal Plant and surrounding district in Nizhny Novgorod. Vitus operates its own cable distribution network.

Golden Telecom also acquired a 100% interest in OOO Informtechnology ("Informtechnology"), a telecommunications operator in Cheboksary, Chuvashiya Republic of Russia, with a cable distribution network of approximately 40 kilometers.

Commenting on these deals, Jean-Pierre Vandromme, Golden Telecom's Chief Executive Officer, noted: "These purchases and acquisitions support our regional expansion strategy and further emphasize Golden Telecom's proactive approach to market consolidation. The resources of the acquired companies and the purchased assets enable us to enlarge our client base and to strengthen Golden Telecom's position in the regions."

About Golden Telecom (

Golden Telecom, Inc. (NASDAQ: GLDN) is a leading facilities-based provider of integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States ("CIS"). The Company offers voice, data and Internet services to corporations, operators and consumers using its overlay network in major cities including Moscow, Kiev, St. Petersburg, Nizhny Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, and via intercity fiber optic and satellite-based networks, including approximately 290 combined access points in Russia and other countries of the CIS. The Company offers cellular communication services in Kiev and Odessa.

Statements contained herein are forward-looking and are made in compliance with safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements include those on our regional expansion strategy, the expected acquisitions and asset purchases details, future service offerings, including the benefits of such service offerings, the expected benefits of the acquisitions of Vitus and Informtechnology, and purchases of Uralkhimmash and Les-Transit telecommunications assets. It is important to note that such statements involve risks and uncertainties, which may cause results to differ materially from those set forth in these statements. Such risks and uncertainties include, without limitation, the possibility that we are not able to offer the services in the manner we expect or that we are unable to implement the regional expansion strategy as we expect, or that the services will not provide the expected growth or benefits. Additional information concerning factors that could cause results to differ materially from those in the forward-looking statements is contained in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's quarterly reports on Form 10-Q, current reports on Form 8-K filed during 2006 and 2007, and the Company's annual report on Form 10-K for the year ended December 31, 2005.

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