Although all of the facts remain unknown to us at this time, the investigation appears to concern alleged improprieties in the manner in which Golden Telecom LLC routed certain traffic through the state-owned monopoly carrier, Ukrtelecom. Our partners, who act as General Director and Technical Director under the terms of our foundation agreements, are of the opinion that these events are related to ongoing commercial disputes between Golden Telecom LLC and Ukrtelecom. In 2000, Golden Telecom LLC initiated litigation against Ukrtelecom, which is directly managed by the State Communications Committee (the Regulator), in an attempt to resolve several ongoing commercial disputes which still remain unresolved. It is the express policy of Golden Telecom LLC to comply with all legislation and regulation in Ukraine. Golden Telecom LLC intends to fully cooperate with the ongoing investigation.

Customers of Golden Telecom LLC should have no reason to experience service interruptions as a result of this investigation.

For further information:
Vyacheslav Fedchenko
Tel. 8 (044) 490 5021
Fax 8(044) 490 5031
E-mail: slava@goldentele.com