MOSCOW, Russia (September 3, 2003)— Golden Telecom, Inc. (NASDAQ: “GLDN”) announced that it has finalized the acquisition of 100% of OOO Sibchallenge Telecom, the leading alternative wireline operator in Krasnoyarsk.  OOO Sibchallenge Telecom owns 100% of the ownership interests in ZAO Tel, an Internet service provider, also based in Krasnoyarsk.

On August 6, 2003 Golden Telecom signed a share purchase agreement to acquire 100% of OOO Sibchallenge Telecom. After the receipt of regulatory approval and satisfaction of conditions precedent the deal was closed on August 27, 2003. The price of the acquisition was  $15 million.

Sibchallenge Telecom has constructed and operates 100,000 telephone numbers in Krasnoyarsk. It has an independent network in Krasnoyarsk, with an Electronic Worldwide Search Digital (EWSD) switch, 127 km of fiber-optic cable, 170 km of copper cable, and more than 30 points of presence in the city. It also has a Code Division Multiple Access (CDMA) wireless license, with approximately 8,000 users. ZAO Tel estimates that it controls 50% of the dial-up Internet market in Krasnoyarsk.

The consolidated revenue for OOO Sibchallenge Telecom in 2003 is expected to be between $10 million and $12 million, calculated according to Russian Accounting Standards (RAS).     

About Golden Telecom (www.goldentelecom.com)

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 metropolitan overlay networks in Moscow, Kiev, St. Petersburg and Nizhny Novgorod and via intercity fiber optic and satellite-based networks – including 149 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 safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements include the expected revenue of OOO Sibchallenge Telecom in 2003. It is important to note that such statements involve risks and uncertainties, which may cause outcomes to differ materially from those set forth in these statements.  Such risks and uncertainties include, but are not limited to, the possibility that expected revenue streams may not materialize. 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 periodic reports on Form 8-K filed during 2003, the Company’s annual report on Form 10-K for the year ended December 31, 2002, and the company’s quarterly report on Form 10-Q for the period ended June 30, 2003.

FOR MORE INFORMATION, CONTACT:

Public Relations:

Anna Chin Ga Pin

e-mail: achin@gldn.net

tel.: +7-501-797-9300; fax: +7-501-797-9332

Investor Relations:

Tom Adshead

e-mail: tadshead@gldn.net

tel.: +7-501-797-9300; fax: +7-501-797-9331

www.goldentelecom.com