COMPANY'S NEWS

OUR COMPANY HAS A NEW FOUNDER!

The deal on acquiring of 54% BUZTON JV stock by «Golden Telecom Inc.» Company (NASDAQ: “GLDN”) is finished. Golden Telecom, Inc. 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.

Current Shareholders

Alfa – 30%

Telenor – 20%

Rostelecom – 11%

EBRD – 8%

Baring-Vostok – 7%

Capital – 6%

Other – 18%

Source: Approximate numbers based on shareholders' SEC filings, as of December 31, 2003

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, Georgia and Uzbekistan, and operates through a wholly-owned subsidiary in Kazakhstan.

Sovintel

Sovintel was established in 1990 as a competitive local exchange carrier in Moscow in the form of a 50/50 joint venture between the former parent company of Golden Telecom, Global TeleSystems,Inc. (GTS) and the Main Center for Management of Long-Distance Communications of USSR (GTsUMS). GTsUMS subsequently became part of Rostelecom - the Russian national long distance carrier. From its early days, Sovintel was positioned as a superior voice service provider with a focus on the high end of the corporate market. Sovintel expanded quickly and established a strong blue chip customer base and a stellar reputation for customer service. GTS’ holding in Sovintel was transferred to Golden Telecom, Inc. as part of the Golden Telecom IPO in 1999. In September 2002, Golden Telecom bought the remaining 50% of Sovintel from Rostelecom.

Comincom

Comincom, together with its 100%-owned subsidiary, Combellga, provides telecommunications services, principally to major hotels, business offices and mobile communication companies through its telecommunications network in Russia, including Moscow, St. Petersburg, Voronezh, Samara and several other major population centers. The acquisition of 100% of Comincom in December 2003 further strengthens Golden Telecom’s position in the key Moscow and St. Petersburg communications markets, and positions the company to realize future operating and cost synergies.

Golden Telecom (Ukraine)

Golden Telecom (Ukraine) commenced service in 1997 as a competitive local exchange carrier in Kiev and as a provider of mobile services. Today, Golden Telecom (Ukraine) is the leading provider to corporate customers in Kiev and has a substantial presence in all major regional centers of Ukraine.

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 35% 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. Earnings before interest, tax and depreciation (EBITDA), an important indicator of the Company's financial health, grew by 87% relative to 2002 and reached $115.0 million in 2003.

Strategy

The Company's objective is to be the leading independent voice, data and Internet services company in Russia and the CIS. To achieve this objective, Golden Telecom intends to:

Pursue Consolidation Opportunities

The Company intends to pursue consolidation opportunities through selective acquisitions that will allow it to expand its geographical reach, add to its service offerings and improve market share while maintaining operational control. Golden Telecom will target complementary opportunities that will enable it to achieve synergies and economies of scale and seek regional opportunities in major cities where it does not have its own local network infrastructure.

Increase Market Share by Offering Bundled Data and Voice

Services Over an Integrated Network

Corporate customers increasingly demand integrated telecommunications solutions from one-stop providers that are able to deliver a full service offering in the geographical areas in which these corporate customers operate. As a result, Golden Telecom plans to continue to develop and combine its businesses to create a unified service platform for local access, local exchange, domestic and international long distance, data, Internet access and services via turn-key solutions.

Extend the Company’s Leading Position in High Growth Data and Internet

Markets

Golden Telecom plans to build on its position as a leading provider of data and Internet communication services in Russia and other countries of the CIS by increasing the number of network access points in its network to facilitate the growing demand for data and Internet communications.

Reduce Operating Costs and Satisfy Capacity Needs through

Network Planning and Optimization

The Company’s network strategy includes building and owning its local exchange and customer access networks. Golden Telecom has entered into long-term lease agreements for long-distance and international fiber optic cable systems to provide regional and global connectivity, supplementing these leased land-based channels with satellite circuits for redundancy and remote connectivity. The Company intends to selectively invest in and to incrementally expand the fiber optic capacity along its heavy traffic and high cost intercity routes to reduce unit transmission costs and ensure sufficient capacity to meet the growing demand for data and Internet services. Wherever possible, Golden Telecom targets customers and products to fully utilize existing fixed cost network infrastructure.

Focus Operating Activities and Capital Investments in Major

Metropolitan Areas

The Company plans to deploy capital investments primarily in Moscow, Kiev, St. Petersburg, Nizhny Novgorod, Krasnoyarsk and other major population centers in the CIS where demand for its services is most heavily concentrated. It also intends to expand operations in regional cities with sufficiently strong local economies and where it believes potential exists to grow businesses that complement current operations.

The Company considers the recent acquisition of Comincom to be an important part of this strategy. It views Comincom as a highly complementary business that will allow it to increase market share in Moscow and other key metropolitan markets. Golden Telecom expects significant operating synergies in combining these businesses and significant opportunities to optimize its network and capital investment costs.

08 June 2004

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