Golden Telecom Marks Its Five Years on NASDAQ; Plans for Dynamic Growth, Further Acquisitions and Expansion to New Markets in th

Golden Telecom Marks Its Five Years on NASDAQ; Plans for Dynamic
Growth, Further Acquisitions and Expansion to New Markets in the Former Soviet
Union 


NEW YORK, Oct. 1  /PRNewswire/ -- Golden Telecom Inc., a leading Russian
provider of integrated telecommunications and Internet services celebrated the
5th anniversary of its listing on NASDAQ by opening the market on Thursday,
September 30, and announcing plans for continued dynamic growth of market share
and revenues.

(Photo:  http://www.newscom.com/cgi-bin/prnh/20041001/LNF018 )

"The company is making great strides in terms of consolidating telecom and
internet businesses through acquisitions," said Bruce Aust, NASDAQ Executive
VP, while delivering his welcoming remarks during the morning ceremony at the
NASDAQ Times Square MarketSite.  He also noted "very strong figures" Golden
Telecom had posted in the second quarter, driving its consolidated revenues up
72 percent to 138,8 mln USD as compared to the same quarter of 2003. "Golden
Telecom is a unique company," he said, explaining that although incorporated in
the US it conducts its business operations mainly in Russia and the
Commonwealth of Independent States (C.I.S.).  According to Aust, the company
anticipates rapid development during the next 3 to 5 years complimented by the
strong growth of Russian economy. Golden Telecom pursues expansion
opportunities through acquisitions aimed to improve and expand its service
offering and increase its market share.

NASDAQ official praised Golden Telecom for its "commitment to maintain the
highest standards of corporate governance according to the laws and regulations
of the United States and all countries in which it operates.  We are very proud
and delighted to celebrate Golden Telecom 5-year listing anniversary and we
look forward to an enduring partnership between NASADAQ and Golden Telecom," he
concluded.

The ceremony was attended by NASDAQ officials, journalists, investment bankers
and ranking Russian diplomats, new Russian envoy to the United Nations Andrey
Denisov and Consul General in New York Sergey Garmonin among them. It was the
first time ever that the trading session was opened by the Russians. Standing
side by side with Golden Telecom and CEO Alexander Vinigradov was Oleg Vyugin,
who heads the Russian Federal Commission for Financial Markets. They pushed the
symbolic button together, thus "opening the market."

Speaking before the journalists later same day Mr. Vinogradov stressed the
dynamic growth of the company which he attributed in part to the
professionalism of the managerial team. According to Mr. Vinogradov the
revenues of the company quadrupled during last five years and market
capitalization reached 1.1 billion USD as of September 24, 2004.

"Although we are present in 64 regions of Russia and can without doubt be
qualified as national company, he said, Golden Telecom is also occupying a
substantial market share in the C.I.S. countries and operates a branch office
in Stockholm, Sweden. This in his opinion makes Golden Telecom a truly
international company.  We envision this tendency of growth will continue for
5, 10 years and onwards," Golden Telecom CEO asserted.

Golden Telecom, Inc.  ("Golden Telecom" or the "Company") is a leading
facilities-based provider of integrated telecommunications and Internet
services to businesses and other high-usage customers and telecommunications
operators in major population centers throughout Russia and other countries of
the Commonwealth of Independent States (CIS).

Customers

Golden Telecom's customers include large, medium and small Russian companies,
large transnational companies, business centers, hotels, fixed line, mobile and
paging operators, banks, financial institutions, residential clients, embassies
and representative offices of foreign companies. The Company makes use of its
own backbone fiber optic network in Moscow, St. Petersburg, Nizhny Novgorod,
Krasnoyarsk, Samara, and Kiev which is accessed using fiber optic, copper wire,
microwave and fixed wireless lines.

Shareholders

Golden Telecom was incorporated as a Delaware corporation on June 10, 1999 and
is listed on NASDAQ under the symbol "GLDN". Current shareholders of Golden
Telecom represent a balanced mixture of strategic and financial, as well as
Russian and international investors.

Structure

Golden Telecom consists of three major operating companies, Sovintel, Comincom,
and Golden Telecom (Ukraine), and conducts its business in Russia and the CIS
through a network of affiliated or controlled structures. The most significant
branches are those in St. Petersburg, Archangelsk, Khabarovsk, Irkutsk and Ufa.
The leading regional joint ventures are situated in Nizhny Novgorod,
Novosibirsk, Vladivostok, Ekaterinburg, Krasnodar, Volgograd and Samara. 
Through agents and distributors, the Company also offers service in Azerbaijan,
Belarus and Georgia, and operates through  subsidiaries in Kazakhstan and
Uzbekistan.

Services

Golden Telecom provides a variety of services to its customers. Some of the
services offered include:

  To business customers:
   -- Local numbers and lines, local, domestic long-distance and
      international digital voice services
   -- Private lines
   -- Dedicated Internet access
   -- Design, installation and management of private data networks
   -- Call center services

  To cellular operators:
   -- Local numbers and connection lines to the Public Switched
   -- Telecommunications Network (PSTN), local, domestic long-distance and
      international traffic carrier services

  To international carriers:
   -- Voice traffic termination in Russia and the CIS
   -- Capacity resale

  To smaller fixed-line operators:
   -- Local, domestic long-distance and international traffic carrier
      services
   -- Voice over Internet Protocol (VoIP) traffic termination
   -- Broadband IP connectivity

  To consumers:
   -- Residential telephone service
   -- Dial-up Internet access
   -- Pre-paid calling cards

  Market Position


Golden Telecom occupies a leading position in Russian and CIS
telecommunications. The company is the largest alternative operator in Russia,
with approximately 36% of the corporate market. Moscow is the primary base of
Golden Telecom's operations with approximately 75% of the company's revenues
received in Moscow.  Golden Telecom also occupies a leading position in the
Dial-Up Internet Access consumer market, throughout Russia.  No other
alternative service provider commands such a strong presence in all of these
markets. Golden Telecom is the number two provider in the corporate market of
St. Petersburg and number one among alternative network providers in Nizhny
Novgorod. In Ukraine, LLC Golden Telecom (Ukraine) is the largest independent
fixed-line operator and operates in all major Ukrainian cities.

2003 Financial Results

Golden Telecom demonstrated strong financial results in 2003. Consolidated
revenue was $360.5 million, an increase of 81% over 2002. 

http://www.newscom.com/cgi-bin/prnh/20041001/LNF018

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DATASOURCE: Golden Telecom Inc.



CONTACT:  Golden Telecom Public Relations - Anna Chin Go Pin,

[phone], fax, [phone], ; or Russian Information

Agency Novosti - New York - Dmitri Klimentov, [phone], cell,

[phone], 

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