Golden Telecom Unifies Operations in Nizhny Novgorod.

Business Editors/Hi-Tech Writers

NIZHNY NOVGOROD--(BUSINESS WIRE)--Oct. 3, 2002

Golden Telecom, Inc. (Nasdaq:GLDN), a leading facilities based provider of integrated telecommunications and Internet services throughout Russia and the Commonwealth of Independent States (CIS) today announced the merger of its telecom companies in Nizhny Novgorod. TeleRoss-Nizhny Novgorod, Agentstvo Delovoy Svyazy (ADS), Commercial Information Networks (KIS) and Inforis will operate under the name Agentstvo Delovoy Svyazy. This merger will create a powerful provider of voice and data services as well as dedicated and dial-up Internet access in Nizhny Novgorod. The dial-up Internet access will be provided under Golden Telecom's ROL trademark.

Golden Telecom has operated in Nizhny Novgorod since 1996 when it established a 50-50 joint venture with Svyazinform Nizhny Region. Prior to the merger Golden Telecom also held 51% of ADS, 51% of KIS and 100% of Inforis. In the merged company Golden Telecom will own 58% of the shares and will nominate 3 of the 5 members of the Board of Directors.

The merger of the Golden Telecom operations in Nizhny Novgorod and the acquisition of the remaining 50 % of Sovintel are the most significant recent events in the Russian wireline telecommunications market. The appearance of a telecommunications provider offering the full range of services in Nizhny Novgorod will benefit the telecomm industry and contribute to the overall economic development in the region.

"In the past two years alone, we have invested over US$5 million into the telecom infrastructure of the city and region," - said Alexander Vinogradov, President and Chief Executive Officer of Golden Telecom. Golden Telecom plans to significantly expand its capacity in Kstov, Dzerzhinsk, Bor, Balakhna, and Sarov, as well as construct new telecom sites in Arzamas, Pavlovo, and Vyksa".

The company's offerings will focus on corporate voice, data and Internet services and intends to introduce new IP-based telecom products in the region. "Moreover, we plan to take active part in the development of universal telephone access in Nizhny Novgorod and PSTN modernization with transition to a 7-digit numbering plan," - stated Stan Abbeloos, Chief Operating Officer of Golden Telecom. "Our goal is to satisfy the growing demand by corporate customers for quality telecom services and to meet the needs of the region as a whole by combining joint resources of the leading companies in Nizhny Novgorod," said Mr. Abbeloos.

David Stewart, Chief Financial Officer of Golden Telecom commented "The merger increases the scale and financial stability of our operating in Nizhny Novgorod. The combined company will employ 150 persons and expected to contribute combined revenues of approximately US $6 million in 2002."

About Golden Telecom (www.goldentelecom.ru)

Golden Telecom 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 competitive local exchange carrier services using its overlay network in Moscow, Kiev, St. Petersburg and Nizhny Novgorod; data and long-distance services using a fiber optic and satellite-based network - including approximately 148 combined access points in Russia and other countries of the CIS; dedicated and dial-up Internet access to businesses and consumers; Internet content through numerous web brands powered by its ROL portal; and mobile services.

Statements made in this press release, including statements concerning the anticipated company operations in the Nizhny Novgorod region are forward looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. It is important to note that such statements involve risks and uncertainties, which may cause results to differ materially from those set forth in these statements. Such risks and uncertainties include, but are not limited to, political, economic and regulatory developments in Russia, our ability to execute our business plan, increasing competition that may limit growth opportunities, and the possibility that we are unable to execute our integration strategy. Additional information concerning factors that could cause results to differ materially from those in the forward looking statements is contained in the Company's filings with the U.S. Securities and Exchange Commission including the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2002 and the Company's annual report on Form 10-K for the year ended December 31, 2001.

www.goldentelecom.ru