Golden Telecom Launches in Kazakhstan

ASTANA, Kazakhstan -- Golden Telecom, Inc. ("Golden Telecom" or the "Company") (NASDAQ: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 the launching a new project for the construction of a local communications network in Astana, the capital of the Republic of Kazakhstan.

The project embraces 3 residential complexes with 700 apartments and the business center "Astana City Center," with a total floor area of 11,000 sq. meters. The residential complexes and business center are presently under construction in the new micro-district of Astana referred to as the "Special Economic Zone 'Astana - New City'."

The project provides for the installation of 1,000 city telephones and the organization of permanent high-speed Internet access based on Ethernet/ADSL technologies. Golden Telecom will provide subscribers with local communication services, and, in cooperation with Kazakhtelecom, long-distance and international communication services. The business center is expected to be connected and operational in the third quarter of this year.

This year, SA Telcom, a wholly-owned Kazakh subsidiary of Golden Telecom, celebrated 10 years of operations in the Republic of Kazakhstan. This company was one of the first telecommunications operators to provide Internet and data transmission services in the Republic of Kazakhstan. During the 10 years of operations, the company built a network with 60 points of access throughout the country with a total capacity of 100 Mbps. Additionally, SA Telecom branches were opened in Astana, Karaganda, and Atyrau. The company has over 300 major customers, including K-Mobile, K-Cell, Nurbank, Haliburton, National Bank of the Republic of Kazakhstan, and others.

"For us, the Astana project is the beginning of a strategically new stage in the development of SA Telcom," says Zh. Aidabekov, General Director of SA Telcom. "In the long-term, we plan to expand this node to 2,500 numbers and provide communication services to other residential and business complexes of Astana. Our aim now is to become a universal operator for the end users, primarily in Astana, Almaty and Atyrau."

Golden Telecom Inc.