Moscow, Kazan, Russia(June 15, 2006)— 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”), reports initiation of full-scale operations in the Russian Republic of Tatarstan.

In March 2006, Golden Telecom acquired a 70% ownership interest in ZAO Tatar Intellectual Communications (“Tatintelcom”), a leading Internet service provider operating in the Russian Republic of Tatarstan. Tatintelcom is the largest provider of Internet services in Tatarstan in terms of volume. Additionally Tatintelcom rents communication channels, and constructs local communication networks and virtual private networks in Kazan, Nizhnekamsk, Naberezhniye Chelny, and other cities and districts of the Russian Republic of Tatarstan. Tatintelcom installed its digital subscriber line (DSL) equipment in 8 out of 10 communication nodes on the Kazan City Telephone Network and covers approximately 80% of Kazan’s territory. The capacity of these 8 communication nodes is approximately 160,000 numbers.

Today Tatintelcom offers broadband Internet access services to corporate clients using asymmetric digital subscriber line technology. According to the Russian State Statistics Committee, the number of legal entities registered in Tatarstan by the end of 2005 included 2,999 industrial enterprises and 17,500 small businesses, a significant share of which is located in Kazan.

The Company plans to develop and provide broadband Internet access services in Kazan and other districts of Tatarstan. In the process, the Company will gradually shift its focus from corporate clients to end users.

The acquisition of Tatintelcom has provided the Company with access to the “last mile”, a considerable customer base, and almost 80% coverage of Kazan. In addition, it was the Company’s first step in the process of planned implementation of its own broadband access rollout strategy. 

On June 5, 2006, Golden Telecom completed construction of a fiber-optic communication line (“FOCL”) on the Nizhny Novgorod – Kazan segment. Once the segmentis commissioned by Rossvyaznadzor, Golden Telecom will launch commercial operations. The Nizhny Novgorod – Kazan segmentis 490 kilometers long.

The construction of a fiber-optic communication line between Moscow, Nizhny Novgorod, Kazan, and Ufa was initiated in January 2004 under a commercial agreement with Vimpel?om. In March 2006, Golden Telecom announced the inauguration of the first 485 kilometer long segment between Moscow and Nizhny Novgorod. The fiber-optic communication lines constructed by Golden Telecom consist of new generation networks that enable the Company to provide high quality Internet access services and voice services. Development of our fiber-optic network is part of the Company’s broadband access rollout strategy. In addition, it allows the Company to enter the long distance communication market and take advantage of its new license on provision of intercity and international telephone communication services obtained on May 31, 2005.

By launching its own fiber-optic communication line, Golden Telecom will be able to optimize and significantly reduce its expenditures associated with the lease of trunk channels from other providers, offer competitive rates to end users and Internet providers in Tatarstan, and offer considerably more attractive telephone rates to end users while maintaining Golden Telecom’s traditionally high quality of telephone services offered. Inauguration of the FOCL will also enable the Company to offer more attractive rates to Golden Telecom corporate clients, and availability of its own access point to the trunk FOCL in Kazan, as well as its own communication node, will enable Golden Telecom to successfully solve the “last mile” problem for corporate clients the number of which has been steadily growing in Kazan.

The Information Technologies Center of the Republic of Tatarstan held a tender for the right to provide Internet access services to state authorities and governmental institutions in Tatarstan. All leading Internet providers in Tatarstan took part in the tender. ThecontractwasawardedtoGoldenTelecom.

A Memorandum of Understanding between Golden Telecom and the Government of the Russian Republic of Tatarstan on the development of the information and communication infrastructure of the Russian Republic of Tatarstan has been prepared and submitted to the Ministry of Informatization and Communication of the Russian Republic of Tatarstan. Within this document’s framework, Golden Telecom will develop modern info-communications technologies that will meet the needs of the republic's telecommunications market, extend and upgrade existing telecommunications networks, increase the Company's network capacity in major populated areas of Tatarstan and introduce new telecommunications services, in particular broadband access services on the territory of the Russian Republic of Tatarstan.