Golden Telecom acquires the leading alternative operator in Bryansk

December 20, 2007

1 Min Read

MOSCOW -- Golden Telecom, Inc. (NasdaqGS:GLDN - News), a leading provider of integrated telecommunications and Internet services in Russia and the Commonwealth of Independent States ("CIS"), announces today that it has completed the acquisition of 100% of ZAO BryanskTel and 100% of OOO BryanskIntel -- which together form Group BryanskTel ("BryanskTel"), for cash consideration of approximately $5.5 million.

BryanskTel is the leading alternative communication carrier in Bryansk. BryanskTel was founded in 1997 to provide voice services to corporate and residential clients. Today, the company has approximately 12,000 active telephone lines and more than 20,000 cable television and broadband subscribers. In 2007, BryanskTel's revenues grew by approximately 50%. BryanskTel operates its own network which covers more than a half of the potential broadband users in Bryansk. The acquisition of BryanskTel will enable Golden Telecom to provide a full range of communication services to its clients in the region. Bryansk becomes the 25th region in Russia where Golden Telecom operates zonal networks, reinforcing Golden Telecom's leading position as the largest zonal operator in Russia and one of the top players on the domestic and international long-distance market.

Commenting on the transaction, Jean-Pierre Vandromme, Chief Executive Officer of Golden Telecom, said, "Through the acquisition of BryanskTel, Golden Telecom enters a new and highly promising region. We will offer the same range of products and services to our existing clients and the local businesses. The acquisition also perfectly fits in our 'Triple-65 project' implemented together with Corbina Telecom. We plan to continue further development of a Fiber-to-the-building network in Bryansk in 2008 following our strategy for providing broadband access and Triple-Play services in growing regional markets."

Golden Telecom Inc.

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