October 25, 2007 – BT, one of the world’s leading providers of communication solutions and services to large organizations, and Golden Telecom, (NASDAQ: “GLDN”) a leading provider of integrated telecommunications and Internet services in Russia and the Commonwealth of Independent States (“CIS”), signed a partnership agreement under which BT will have access to Golden Telecom’s backbone network.  This arrangement will enable BT to significantly extend the scope and reach of its advanced communications services in Russia and worldwide. Accordingly, Golden Telecom’s customers will obtain access to global BT’s 21 Century Network, one of the most extensive and resilient IP networks in the world, thus getting access to global Information and Communications Technologies(ICT) services.

“This agreement is a great example of beneficial cooperation between our two companies. By using Golden Telecom’s extensive backbone network we can extend services to our clients across all of Russia, enabling them to develop their businesses in the region”, said Richard van Wageningen, CEO of BT Russia and CIS.

The contract with Golden Telecom will enhance BT’s capabilities in Russia ensuring network reliability and providing customers with a network with truly global outreach. This is a new milestone in BT’s strategy in Russia focused on increased cooperation with local operators.

BT’s customers see their businesses growing in the Russian regions where development of new communications services is supported by the Russian government. The rapid development of the local markets has contributed to the increased interest of multinational companies and led to a significant expansion by BT. BT currently serves more than 250 corporate customers in the region.

“Partnership with an international operator like BT is fully aligned with the strategy of Golden Telecom,” says Andrey Patoka, Vice President, Head of International and Regional Business of Golden Telecom. “Our target is to further develop our multi-service network in Russia and provide greater opportunities and additional services for our clients.  The agreement with BT is another step in this direction, enhancing our service offering and giving our customers access to a global network and high grade communication services. Our partnership with BT supports foreign companies in their development in Russia”.