In accordance with its business strategy, Golden Telecom remains focussed on regional expansion. The Company has 26 points of technical presence and 8 points of commercial presence in the Northwest (“NW”) region of Russia. Today, the alternative operators of the NW Region possess 39% of the fixed-line communications market share. Golden Telecom leads among the alternative operators with 26% of the market share in the NW region. By the end of 2007 the company’s annual revenue from the region is expected to exceed $137 million.

Golden Telecom is the only provider that operates in all segments of the fixed-line communications market in Russia. Traditionally, approximately 50% of Golden Telecom’s revenue in the NW region comes from corporate clients.

In 2007, Golden Telecom began rollout of its “Triple 65” project to construct Fiber-to-the-Building (“FTTB”) networks in Russia, including the NW region. Currently, the networks are being constructed in St. Petersburg, Arkhangelsk and Kaliningrad. The company expects to cover 650,000 households by the end of 2007 in the region.

Fiber-optic channels connect Golden Telecom with leading international operators, bringing together cities with the most concentrated international traffic from Russia. The Company’s Moscow – St. Petersburg – Stockholm line is the “Window to Europe” for Russian carriers. The majority of the international interconnections are located on this network segment. Golden Telecom is the leader on the Russian market for international telecommunication channels with its 1600 km fiber-optic network.

Commenting on Golden Telecom’s operational results in the NW region, Jean-Pierre Vandromme, CEO, said: “Today, our company leads among the alternative operators in the Northwest region. In following our regional expansion strategy each year, we increase Golden Telecom’s operations not only in St. Petersburg, but also throughout the entire region. In 2007, in addition to providing services to corporate clients, small and medium-sized businesses, our company entered the consumer market with a variety of new Broadband Internet services. We expect our services to be available to the majority of people of the NW Region”.