SOURCE: Golden Telecom

January 10, 2007 10:41 ET

Golden Telecom Receives Access Codes for Long Distance Services in Russia

MOSCOW -- (MARKET WIRE) -- January 10, 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 announced that it has received access codes for long distance services in Russia.

On December 15, 2006, Minister of the Russian Federation for Communications and Informatization Leonid D. Rejman signed a Resolution No.171 allocating access codes "51" for domestic long distance ("DLD") services and "56" for international long distance ("ILD") services to Golden Telecom. This resolution was as required by Russian legislation registered by the Ministry of Justice of the Russian Federation on the 28th of December. This will allow people to choose Golden Telecom as an operator providing domestic and international long distance ("DLD\ILD") services. The access codes will allow Golden Telecom to fully utilize its Federal Transit Network ("FTN") which was completed on January 16, 2006. The FTN consists of 4 international communications transit nodes, 7 intercity communications transit nodes deployed in each federal district of Russia, and 88 connection points or FTN access nodes located in each constituent territory of Russia. With the access codes and the FTN, Golden Telecom get access to a potential customer base of 140 million people and 1,300,000 businesses across Russia.

Commenting on the receipt of the access codes, Mr. Jean-Pierre Vandromme, Chief Executive Officer of Golden Telecom, noted, "Golden Telecom has constructed its own FTN which covers all regions of Russia and is capable of providing a full range of DLD\ILD services. We expect to start providing DLD/ILD services throughout Russia during first quarter of 2007. Based on our existing client base, an effective marketing campaign and a highly skilled and experienced sales force, Golden Telecom plans to capture at least a 20% market share of the total DLD/ILD market in Russia by the end of 2010. According to management estimates, the total market for such services will reach $3.5 to $4.5 billion by the end of 2010. We see the receipt of our access codes as another exciting stage in our continued growth and expansion into the Russian 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 CIS. The Company offers voice, data and Internet services to corporations, operators and individuals using its metropolitan overlay networks in major cities, including Moscow, Kiev, St. Petersburg, Nizhny Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma Ata and Tashkent and via leased channels and fiber optic and satellite-based networks, including approximately 287 combined access points in Russia and other countries of the CIS. The Company offers mobile services in Kiev and Odessa.

Statements made in this press release are forward-looking and are made pursuant to the provisions of the Securities Litigation Reform Act of 1995. Such statements include those on the utilization of the access codes and FTN and the expected benefits of such, the expected markets for our DLD/ILD services and our ability to capture portions of that market. 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, but are not limited to, the possibility that we are not able to develop DLD/ILD services and FTN in the manner we anticipate or that we do not realize the expected benefit for such service offerings or that the market for such services does not grow at the rates that we expect. 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 the Company's annual report on Form 10-K for the year ended December 31, 2005.

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