Golden Telecom Reports Q1 Profit

MOSCOW -- Golden Telecom, Inc. ("Golden Telecom" or the "Company") (NASDAQ: "GLDN"), 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"), today announced its financial and operating results for the first quarter of 2005 ended March 31, 2005.

For the thirteenth consecutive quarter, Golden Telecom reported profitable results. During the financial quarter ended March 31, 2005, Golden Telecom's net income increased by 36.1% to $20.0 million compared to $14.7 million in the first quarter of 2004. The Company's consolidated revenues rose by 17.5% to $156.5 million compared to $133.2 million in the financial quarter ended March 31, 2004. Compared to the first quarter of 2004, operating income in the first quarter of 2005 was $29.2 million, an increase of 38.4% from $21.1 million in the first quarter of 2004.

Commenting on today's announcement, Alexander Vinogradov, Chief Executive Officer and President of Golden Telecom, said, "We are pleased with our results for the first quarter of 2005. Despite being faced with continued changes in the regulatory and telecommunications environment in Russia, we continue to remain focused on growing our business, serving our customers, and bringing value to our shareholders."

Golden Telecom Inc.