Golden Telecom: Golden Telecom Strengthens Its Position in the Broadband Access Market Through Acquisition of Corus ISP
Golden Telecom Strengthens Its Position in the Broadband Access Market Through Acquisition of Corus ISP MOSCOW — (MARKET WIRE) — November 20, 2006 — Golden Telecom, Inc. (”Golden Telecom” or the”Company”) (NASDAQ: GLDN) announces the acquisition of a 100% interest inZAO Corus
ISP (”Corus ISP”) for US $1.2 million. Corus ISP is analternative telecommunications services provider in Ekaterinburg, the fifthlargest and dynamically growing city in Russia.
Corus ISP is one of the pioneers of Internet services in Ekaterinburg,presently focusing on broadband access for corporate clients, with itsmarket share estimated at approximately 7%. Corus ISP has an extensivenetwork in central Ekaterinburg, with approximately 29 km of owned andleased channels, and more than 120 points of presence.
Golden Telecom has provided services to its clients in Ekaterinburg formore than 10 years. Scope and quality of operations were enhanceddramatically when in August 2004 ZAO TeleRoss-Ekaterinburg, OOO UralRelcomand the Ekaterinburg branch of Combellga were merged into the Ekaterinburgbranch of Golden Telecom. Successful integration of these companies enabledGolden Telecom to offer a wide range of telecommunication products andservices. Today, the Company is the leading provider of broadband accessservices, local and zonal telephone services, data communication, andcorporate networks development. The Company estimates that it hasapproximately 26% of the corporate market and over 10% of the totalfixed-line market in Ekaterinburg.
This acquisition will place Golden Telecom in the center of Ekaterinburg’scommunications market due to Corus ISP’s network infrastructure andexisting business clients, thus increasing the Company’s Ekaterinburgmarket share in the corporate segment to approximately 33%.
Commenting on this acquisition, Mr. Jean-Pierre Vandromme, Chief ExecutiveOfficer of Golden Telecom, noted, “We acquired Corus ISP to further ourregional expansion and speed the development of broadband services forcorporate and residential clients in Ekaterinburg. We look forward toproviding complementary Internet, data, and voice services which willstrengthen our presence in this growing regional market.”
About Golden Telecom (www.goldentelecom.com)
Golden Telecom, Inc., (NASDAQ: GLDN) is a leadingfacilities-based provider of integrated telecommunications and Internetservices in major population centers throughout Russia and other countriesof the CIS. The Company offers voice, data and Internet services tocorporations, operators and individuals using its metropolitan overlaynetworks in major cities, including Moscow, Kiev, St. Petersburg, NizhnyNovgorod, Samara, Kaliningrad, Krasnoyarsk, Alma Ata and Tashkent and vialeased channels and fiber optic and satellite-based networks, includingapproximately 287 combined access points in Russia and other countries ofthe CIS. The Company offers mobile services in Kiev and Odessa.
Statements made in this press release are forward looking and are madepursuant to the provisions of the Securities Litigation Reform Act of 1995.Such statements include the expected benefits from the acquisition of ZAOCorus ISP, including market share. It is important to note that suchstatements involve risks and uncertainties, which may cause results todiffer materially from those set forth in these statements. Such risks anduncertainties include, but are not limited to, the possibility that theadvantages expected from the acquisition of Corus ISP will not materializedand that we are unable to develop the business and market share as weexpect. Additional information concerning factors that could cause resultsto differ materially from those in the forward-looking statements iscontained in the Company’s filings with the U.S. Securities and ExchangeCommission, including the Company’s quarterly reports on Form 10-Q,periodic reports on Form 8-K filed during 2006, and the Company’s annualreport on Form 10-K for the year ended December 31, 2005.
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