MOSCOW -- Golden Telecom, Inc. ("Golden Telecom" or the "Company") (NasdaqNM:GLDN - News), a leading independent provider of integrated telecommunication services operating in Russia and other countries of the Commonwealth of Independent States (CIS) announces it has completed construction and started operation of its fiber-optic communications line (FOCL) between Moscow and Nizhny Novgorod.

In January 2004, Golden Telecom and Vimpelcom began joint construction of their own fiber-optic communication line between Moscow and Nizhniy Novgorod. The construction was completed in November 2005, and on January 1, 2006, the Moscow to Nizhny Novgorod FOCL was fully prepared for certification by the RosSvyazNadzor commission. Operation of the Moscow - Nizhny Novgorod FOCL was officially authorized on March 14, 2006.

The construction of its own FOCL facilitates the implementation of Golden Telecom's long term broadband strategy to be Russia's leading provider of broadband Internet access to consumers and businesses as well as the offering of services by Golden Telecom under its long distance license. The demand for IP Bandwidth in Russia has doubled annually since 2003. It is expected that the number of the users of broadband Internet access in Russia will also double annually and will increase up to 7.9 million users by 2010. This will further accelerate the demand for bandwidth.

Jean-Pierre Vandromme, Chief Executive Officer of Golden Telecom, commented: "Focusing on the providing of broadband Internet access as our mid-to-long term strategy, we are migrating from a traditional Time Division Multiple (TDM) network to a New Generation Network, Broadband and VOIP (Voice over Internet Protocol) which will enable us to offer, in the first stage, high quality services such as broadband Internet access and voice services over broadband all over Russia and the CIS. In the next stage, we plan to pursue an expansion of our broadband Internet access strategy to provide services to a wider consumer market."

Golden Telecom Inc.