MOSCOW -- Golden Telecom, Inc. (NASDAQ:GLDN - News) today announced that it has closed the acquisition of 54% of the shares of SP Buzton, Uzbekistan's leading alternative telecoms operator. The purchase price of the acquisition is approximately $2.8 million in cash.

Buzton is the only fixed line alternative operator in Uzbekistan. It has a license to provide intercity, international and local telephony, and data service. It has been allocated approximately 10,000 subscriber numbers and has 22 points of presence in Tashkent, the capital of Uzbekistan, and 10 in Uzbekistan's regions.

Buzton earned revenues of approximately $3.9 million in 2003, according to the company's unaudited accounts, stated using Uzbekistani Accounting Standards (UAS). The company estimates that it has about 60% of the foreign corporate and embassy telecoms market in Uzbekistan, with the local incumbent, Uzbektelecom as its main competitor. Uzbektelecom owns 43.52% of Buzton and the remaining shares are held by a private investor.

Alexander Vinogradov, Chief Executive Officer and President of Golden Telecom, Inc., commented: "Expanding our presence to Uzbekistan will enable us to better serve our clients who have operations in this country as well as in our core Russian and Ukrainian markets. We are also acquiring some important new local clients."

Oleg Malis, Senior Vice-president of Golden Telecom stated: "Buzton is an excellent opportunity for Golden Telecom to extend its network outside its core markets. As the sole alternative operator in the country, it has strong market share amongst foreign companies, embassies and hotels in the capital, and has also attracted the business of major local clients."

Golden Telecom Inc.