Moscow, Russia (July 19, 2007)Golden Telecom, Inc. (“Golden Telecom” or the “Company”) (NASDAQ: “GLDN”), the leading provider of integrated telecommunications and Internet services in the largest population areas throughout Russia and other countries of the Commonwealth of Independent States (“CIS”), today announces that in May 2007, in connection with the Corbina Telecom acquisition, Rostelecom made a decision to exercise its non dilution rights under the existing shareholders agreement and acquired 392,988 newly issued, but unregistered, shares of Golden Telecom’s common stock. The transaction was closed on July 17, 2007. The total amount paid in cash was approximately $20.4 million. 

Mr. Jean-Pierre Vandromme, CEO of Golden Telecom, noted: “This investment confirms Rostelecom's confidence in our strategy and prospects. We intend to use the proceeds for financing our ambitious growth plans including roll out of residential broadband networks and further expansion in the long distance market”.