Golden Telecom reports a 53% year-on-year increase in revenues and 207% increase in net income

MOSCOW, Russia — Golden Telecom, Inc. (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”), today announced its financial and operating results for the third quarter of 2007.

Implementation of the broadband strategy

In order to meet the growing demand for broadband, Golden Telecom will construct FTTB networks in the Top-65 cities of Russia and Ukraine with a combined population of 65 million people of which an estimated 65% live in high rise apartment blocks. The acquisition of Corbina Telecom was a pivotal step in our broadband strategy. Corbina Telecom pioneered the construction of large scale metropolitan FTTB networks.

Golden Telecom together with Corbina Telecom started the deployment of fiber in 24 cities of Russia. Normally, the commercial operations start 3 months after deployment of the network. This is a significant increase from the initial business plan which foresaw fiber deployment in only 12 cities by the year end. Such an increase in deployment pace is a result of the following factors:

• Corbina’s access to Golden Telecom’s resources including networks, technical and management expertise and funding;
• Faster than expected licensing process. For the whole project we estimate that we require permissions for approximately 16,000 individual construction projects. We have already secured permissions for all cities where fiber deployment is scheduled for 2008. Once the permission is obtained, the construction works are usually completed within six months;
• Significant acceleration of construction works by local branches of Golden Telecom fueled by the example of Corbina.

Golden Telecom also provides broadband access to residential customers in the fast growing Moscow broadband market using wireless WiFi technology. The GoldenWiFi network consists of more than 12,700 indoor and outdoor WiFi nodes. Golden WiFi won the Global Telecoms 2007 Innovation award in September gaining global recognition for its service.

As a result, our broadband market share in Moscow grew to 16% from 3% reported a year ago. We estimate that Golden Telecom has approximately 8% of the total broadband market in Russia.

The Company launched IPTV service in trial mode using the infrastructure of Corbina. The IPTV technology is based on a Microsoft platform and allows greater flexibility and interactivity enabling Video-on-Demand (“VoD”), Pay-per-View and other value added services.