Golden Telecom Deploys Optical Ethernet Solution from Nortel Networks; Russia's First Ethernet Service Provider Offers VPNs to Enterprises in Moscow.

Business Editors/High-Tech Writers

MOSCOW--(BUSINESS WIRE)--Nov. 17, 2003

Golden Telecom, Inc. (Nasdaq:GLDN), a major independent Russian telecommunications operator, has deployed an Optical Ethernet solution from Nortel Networks (NYSE:NT)(TSX:NT) to provide Ethernet virtual private network (VPN) connectivity to enterprises in major business centers and customer locations throughout Moscow.

"Making the most of our installed base and rapidly rolling out new, in demand, revenue generating services is vital in today's telecommunications market," said Alexander Rozanov, director, Business Development Division, Golden Telecom. "Nortel Networks has provided us with new, innovative services, allowing Golden Telecom to be the first company to offer Ethernet connectivity across the whole of Moscow."

The new Optical Ethernet solution from Nortel Networks includes Nortel Networks OPTera Metro 1200 Ethernet Service Modules. OPTera Metro 1200 has expanded on an existing network of Nortel Networks Passport 8600 Multiservice Switches to help Golden Telecom eliminate boundaries between local (LAN) and wide area (WAN) networks.

"As one of Europe's largest and fastest growing cities, Moscow requires new services to be supplied efficiently and rapidly," said Christine Landrevot, president, Eastern Europe, Nortel Networks. "We are driving continuous innovation in our service provider portfolio that will help to accelerate growth of new services."

Services available from Golden Telecom using this solution from Nortel Networks include Ethernet VPNs for LAN-to-LAN interconnection, Internet access and TV multicasting. Customers include enterprises, residential buildings, business centers and TV carriers. Customers can be provided with any-to-any topology Ethernet VPN services with guaranteed bandwidth and quality of service.

Golden Telecom has also deployed Nortel Networks Shasta 5000 Broadband Service Node (BSN) to deliver customized, IP (Internet Protocol)-based services. Shasta 5000 BSN enables Golden Telecom to offer a comprehensive suite of secure, network-based services to its enterprise customers, including stateful firewall, denial of service protection, anti-spoofing and network address translation (NAT). With Shasta 5000 BSN's advanced traffic shaping and policing capabilities and flexible quality-of-service features, Golden Telecom can deliver differentiated services that are customized to meet individual subscriber/requirements.

Golden Telecom is the first Gigabit Ethernet service provider in Russia. Its network is built on the Ethernet switching, IP and multicast routing capabilities of Passport 8600 and Nortel Networks Baystack/BPS policy switches. Shasta 5000 BSN has been added to the network for value-added IP services, to provide VPN and IP access for the new Gigabit network, and for router-based leased line access and ATM networking of Passport 7000 and 20000.

Golden Telecom, Inc., NASDAQ: "GLDN" is 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). The Company offers voice, data and Internet services to corporations, operators and consumers using its metropolitan overlay networks in Moscow, Kiev, St. Petersburg, Krasnoyarsk and Nizhny Novgorod and via intercity fiber optic and satellite-based networks -- including 149 combined access points in Russia and other countries of the CIS. The Company offers mobile services in Kiev and Odessa.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the completion of the comprehensive review and the release of financial results and issuance of restated financial statements for 2000, 2001 and 2002 and the first and second quarters of 2003; the severity and duration of the industry adjustment and the continued reductions in spending by our customers; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; negative impacts on our gross margins; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development and our ability to predict market demand for particular products; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; the impact of the New York Stock Exchange minimum listing requirements and the proposed consolidation of our common shares; the impact of supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation and intellectual property disputes. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Nortel Networks, the Nortel Networks logo, the Globemark, Business Without Boundaries, OPTera, Passport, Shasta and BayStack are trademarks of Nortel Networks.