MOSCOW -- Golden Telecom, Inc. ("Golden Telecom" or the "Company") (NASDAQ:GLDN - News), today announced it has completed the acquisition of 60% of Limited Liability Company Joint Venture Sakhalin Telecom Limited ("ST"), a fixed line alternative operator in the Far East region of Russia. As a result of this acquisition and combined with Golden Telecom's previous ownership in ST, Golden Telecom now owns 83% of ST.

Golden Telecom purchased 60% of ST for a total cash purchase price of approximately $5 million from Open Joint Stock Company "Vimpel-Communications" ("VimpelCom"). VimpelCom purchased the 60% interest in ST from the British company Cable and Wireless plc on July 13, 2005.

Commenting on today's announcement, Jean-Pierre Vandromme, Golden Telecom's Chief Executive Officer, said, "We are pleased to increase our ownership stake in Sakhalin Telecom, and this acquisition complements our regional expansion strategy."

Golden Telecom Inc.