MOSCOW, Russia (July 02, 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”), announces that it has completed the acquisition of 3C Russia including its associated companies – Direct Net, Satcom-Tel and telecommunication assets and customer base of NDNT Inc. and NDNT (UK) Ltd.

Golden Telecom gained full control over the corporate telecommunication business of 3C in Russia including 100% of the shares in ZAO Direct Net, 100% of the shares in OAO Satcom-Tel and telecommunication assets and customer base of both NDNT Inc. and NDNT (UK) Ltd for cash consideration of approximately $2 million. In 2006, the revenues associated with the acquired assets were approximately $4.8 million, in accordance with US GAAP.

Historically, 3C Russia has been well known in the Moscow corporate market as DirectNet, a strong niche player focusing on data communication services. The business was established in 1992, the same period as TeleRoss, Sovintel and Comincom-Combellga, all of which were later acquired and integrated into Golden Telecom.

Golden Telecom has begun key integration initiatives focusing on business optimization, using its capabilities and experience from being a true consolidator in the telecom market in Russia for the past two years.  

Mr. Jean-Pierre Vandromme, CEO of Golden Telecom, noted: “The acquisition of 3C Russia strengthens Golden Telecom’s position in its core market segment. We look forward to serving these large enterprises with our high quality communication services and a wider range of data and IP solutions”.