Golden Closes Fortland Buy

MOSCOW -- Golden Telecom, Inc. ("Golden Telecom" or the "Company") (NasdaqGS: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"), announced today that it closed the transaction to acquire a 65% interest in Fortland Limited ("Fortland"). The purchase price of the acquisition is approximately $51.0 million with the first installment of $38.6 million to be paid by April 5, 2007.

Fortland owns 100% of Kolangon-Optim LLC ("Kolangon"). Kolangon holds licenses to offer digital television services in several of the largest cities of Russia and is expected to target other major Russian cities. These licenses will be used by the Company to provide customers with various services, including a greater number of digital television channels, higher quality picture and the opportunity for Pay-per-view programming, all using the Digital Video Broadcast ("DVB") standard in MPEG-4 coding.

DVB is the most promising television format currently existing and one which is rapidly growing in Europe. DVB is also the most cost-effective TV broadcasting technology and has a number of promising competitive features, including:

In addition, DVB signals can be received by mobile and smart phones, personal computers, laptops, and PDAs. DVB is supported by major television manufacturers, including Sony, Panasonic, and Philips, making DVB access readily available.

The combination of access to DVB technology with the Company's wide geographical presence across Russia, will further the Company's penetration into a potential market of 11 million households in 22 major Russian cities with a population of 35 million. The Fortland acquisition will enable the delivery of a Triple Play service package, including high speed Internet access, digital television with about 50 channels, and VoIP.

Golden Telecom Inc.