Golden Telecom Marks Its Five Years on NASDAQ; Plans for Dynamic Growth, Further Acquisitions and Expansion to New Markets in the Former Soviet Union NEW YORK, Oct. 1 /PRNewswire/ -- Golden Telecom Inc., a leading Russian provider of integrated telecommunications and Internet services celebrated the 5th anniversary of its listing on NASDAQ by opening the market on Thursday, September 30, and announcing plans for continued dynamic growth of market share and revenues. (Photo: http://www.newscom.com/cgi-bin/prnh/20041001/LNF018 ) "The company is making great strides in terms of consolidating telecom and internet businesses through acquisitions," said Bruce Aust, NASDAQ Executive VP, while delivering his welcoming remarks during the morning ceremony at the NASDAQ Times Square MarketSite. He also noted "very strong figures" Golden Telecom had posted in the second quarter, driving its consolidated revenues up 72 percent to 138,8 mln USD as compared to the same quarter of 2003. "Golden Telecom is a unique company," he said, explaining that although incorporated in the US it conducts its business operations mainly in Russia and the Commonwealth of Independent States (C.I.S.). According to Aust, the company anticipates rapid development during the next 3 to 5 years complimented by the strong growth of Russian economy. Golden Telecom pursues expansion opportunities through acquisitions aimed to improve and expand its service offering and increase its market share. NASDAQ official praised Golden Telecom for its "commitment to maintain the highest standards of corporate governance according to the laws and regulations of the United States and all countries in which it operates. We are very proud and delighted to celebrate Golden Telecom 5-year listing anniversary and we look forward to an enduring partnership between NASADAQ and Golden Telecom," he concluded. The ceremony was attended by NASDAQ officials, journalists, investment bankers and ranking Russian diplomats, new Russian envoy to the United Nations Andrey Denisov and Consul General in New York Sergey Garmonin among them. It was the first time ever that the trading session was opened by the Russians. Standing side by side with Golden Telecom and CEO Alexander Vinigradov was Oleg Vyugin, who heads the Russian Federal Commission for Financial Markets. They pushed the symbolic button together, thus "opening the market." Speaking before the journalists later same day Mr. Vinogradov stressed the dynamic growth of the company which he attributed in part to the professionalism of the managerial team. According to Mr. Vinogradov the revenues of the company quadrupled during last five years and market capitalization reached 1.1 billion USD as of September 24, 2004. "Although we are present in 64 regions of Russia and can without doubt be qualified as national company, he said, Golden Telecom is also occupying a substantial market share in the C.I.S. countries and operates a branch office in Stockholm, Sweden. This in his opinion makes Golden Telecom a truly international company. We envision this tendency of growth will continue for 5, 10 years and onwards," Golden Telecom CEO asserted. Golden Telecom, Inc. ("Golden Telecom" or the "Company") is a leading facilities-based provider of integrated telecommunications and Internet services to businesses and other high-usage customers and telecommunications operators in major population centers throughout Russia and other countries of the Commonwealth of Independent States (CIS). Customers Golden Telecom's customers include large, medium and small Russian companies, large transnational companies, business centers, hotels, fixed line, mobile and paging operators, banks, financial institutions, residential clients, embassies and representative offices of foreign companies. The Company makes use of its own backbone fiber optic network in Moscow, St. Petersburg, Nizhny Novgorod, Krasnoyarsk, Samara, and Kiev which is accessed using fiber optic, copper wire, microwave and fixed wireless lines. Shareholders Golden Telecom was incorporated as a Delaware corporation on June 10, 1999 and is listed on NASDAQ under the symbol "GLDN". Current shareholders of Golden Telecom represent a balanced mixture of strategic and financial, as well as Russian and international investors. Structure Golden Telecom consists of three major operating companies, Sovintel, Comincom, and Golden Telecom (Ukraine), and conducts its business in Russia and the CIS through a network of affiliated or controlled structures. The most significant branches are those in St. Petersburg, Archangelsk, Khabarovsk, Irkutsk and Ufa. The leading regional joint ventures are situated in Nizhny Novgorod, Novosibirsk, Vladivostok, Ekaterinburg, Krasnodar, Volgograd and Samara. Through agents and distributors, the Company also offers service in Azerbaijan, Belarus and Georgia, and operates through subsidiaries in Kazakhstan and Uzbekistan. Services Golden Telecom provides a variety of services to its customers. Some of the services offered include: To business customers: -- Local numbers and lines, local, domestic long-distance and international digital voice services -- Private lines -- Dedicated Internet access -- Design, installation and management of private data networks -- Call center services To cellular operators: -- Local numbers and connection lines to the Public Switched -- Telecommunications Network (PSTN), local, domestic long-distance and international traffic carrier services To international carriers: -- Voice traffic termination in Russia and the CIS -- Capacity resale To smaller fixed-line operators: -- Local, domestic long-distance and international traffic carrier services -- Voice over Internet Protocol (VoIP) traffic termination -- Broadband IP connectivity To consumers: -- Residential telephone service -- Dial-up Internet access -- Pre-paid calling cards Market Position Golden Telecom occupies a leading position in Russian and CIS telecommunications. The company is the largest alternative operator in Russia, with approximately 36% of the corporate market. Moscow is the primary base of Golden Telecom's operations with approximately 75% of the company's revenues received in Moscow. Golden Telecom also occupies a leading position in the Dial-Up Internet Access consumer market, throughout Russia. No other alternative service provider commands such a strong presence in all of these markets. Golden Telecom is the number two provider in the corporate market of St. Petersburg and number one among alternative network providers in Nizhny Novgorod. In Ukraine, LLC Golden Telecom (Ukraine) is the largest independent fixed-line operator and operates in all major Ukrainian cities. 2003 Financial Results Golden Telecom demonstrated strong financial results in 2003. Consolidated revenue was $360.5 million, an increase of 81% over 2002. http://www.newscom.com/cgi-bin/prnh/20041001/LNF018 http://photoarchive.ap.org/ DATASOURCE: Golden Telecom Inc. CONTACT: Golden Telecom Public Relations - Anna Chin Go Pin, +7-501-797-9300, fax, +7-501-797-9332, ; or Russian Information Agency Novosti - New York - Dmitri Klimentov, +1-914-232-5780, cell, +1-914-525-6058,

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