Golden Telecom gained full control over the corporate telecommunication business of 3C in Russia including 100% of the shares in ZAO Direct Net, 100% of the shares in OAO Satcom-Tel and telecommunication assets and customer base of both NDNT Inc. and NDNT (UK) Ltd for cash consideration of approximately $2 million. In 2006, the revenues associated with the acquired assets were approximately $4.8 million, in accordance with US GAAP.

Historically, 3C Russia has been well known in the Moscow corporate market as DirectNet, a strong niche player focusing on data communication services. The business was established in 1992, the same period as TeleRoss, Sovintel and Comincom-Combellga, all of which were later acquired and integrated into Golden Telecom.

Golden Telecom has begun key integration initiatives focusing on business optimization, using its capabilities and experience from being a true consolidator in the telecom market in Russia for the past two years.

Mr. Jean-Pierre Vandromme, CEO of Golden Telecom, noted: “The acquisition of 3C Russia strengthens Golden Telecom’s position in its core market segment. We look forward to serving these large enterprises with our high quality communication services and a wider range of data and IP solutions”.