Golden Telecom amends its Stock Appreciation Rights (“SARs”), grants Stock Options under its Equity Participation Plan and announces a Share Buy-Back Program
03 Jul 2007

MOSCOW, Russia (July 3, 2007). Golden Telecom, Inc. (“Golden Telecom” or the “Company”) (NASDAQ: “GLDN”), the leading provider of integrated telecommunications and Internet services in the largest population areas throughout Russia and other countries of the Commonwealth of Independent States (“CIS”), today announces that it has amended its Stock Appreciation Rights (“SARs”) program and outstanding SARs and granted stock options to the SARs holders under the Company’s Equity Participation Plan in order to minimize volatility in reported earnings while keeping equity-based incentives for key employees.

As previously announced, the Company investigated ways to address the earnings volatility resulted from SARs costs from its 2005 Stock Appreciation Rights Plans. A new accounting rule adopted in 2006, (SFAS No. 123R “Accounting for Stock-based Compensation – Revised”) required that the SARs related estimated fair value costs and liability be reassessed and reported each reporting period. A main factor in the calculation is the Company’s share price, thus the reported amounts reflected market volatility and significantly impacted the quarterly results of operations.

Golden Telecom Inc.

Altimo, a leading private equity group, operating on some of the world's most desirable and potentially lucrative mobile telecommunications markets, was created in 2005 from Alfa Telecom, which itself was established in 2004 to hold the telecoms investments of the Alfa Group Consortium (Golden Telecom, Inc., Turkcell Iletisim Hizmetleri A.S., Kyivstar GSM, MegaFon, VimpelCom, Sky Mobile). Those assets are in Russia , the CIS and other promising emerging markets.

Golden Telecom Inc. is a leading independent  fixed-line communications operator in Russia. The company provides, via its own infrastructure, complex telecommunications and internet services in Russia and several CIS countries. Listed on US NASDAQ. In Q1 2008, VimpelCom acquired 100% of the oustanding share capital of Golden Telecom.

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