SOURCE: Golden Telecom, Inc.

January 24, 2007 05:00 ET

Golden Telecom Launches Commercial Operation of the Largest WiFi Network in Europe

MOSCOW -- (MARKET WIRE) -- January 24, 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"), announces today it will launch commercial operation of its WiFi network ("Golden WiFi") in Moscow on February 1, 2007.

Golden WiFi is the largest WiFi network in Europe and the second largest in the world. Currently, Golden WiFi covers approximately 800,000 households in Moscow and consists of 6,700 access nodes. Based on the number of access nodes alone, Golden Telecom has surpassed the world's largest WiFi networks in cities like San Francisco, Philadelphia and London.

Golden Telecom commenced the final phase of its WiFi network rollout with beta-testing at the end of 2006. More than 50,000 users have registered on since the network became available in trial mode which is almost three times more than the incumbent DSL operator signed in Moscow during the third quarter of 2006. In January 2007 alone, there have already been over 20,000 active users of Golden WiFi with approximately 6,000 active daily users.

To subscribe to the WiFi network, users register on Subscribers can top up their accounts at over 7,000 locations throughout Moscow by either purchasing a scratch card or by using cash terminals. These easy, familiar and customer-friendly payment methods will be available for different rate plans, depending on customer preferences. At the launch of services, an unlimited monthly access rate will be offered for 500 rubles, including value added tax, for speeds up to 54Mbps.

Commenting on this event, Jean-Pierre Vandromme, Golden Telecom's Chief Executive Officer, noted, "In 2006, we successfully implemented our broadband access rollout strategy and managed to deploy the Golden WiFi network in Moscow within a very short period of time. The beta-testing demonstrated the popularity of these services among consumers. By 2010, we expect to achieve a significant consumer market share, with approximately 300,000 - 400,000 subscribers."

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, Nizhniy Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, as well as leased channels and 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 concerning the launch of Golden WiFi, expected market penetration and operational issues related to Golden WiFi. The results or events predicted in these statements may differ materially from actual results or events. Such risks and uncertainties include, without limitation, the possibility that we are not able to launch Golden WiFi in the manner we expect or that we are not able to achieve the market share we expect for WiFi customers. 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, periodic 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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