MOSCOW and KAZAN, Russia -- Golden Telecom, Inc. ("Golden Telecom" or the "Company") (NasdaqNM:GLDN - News), 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.

Golden Telecom Inc.