OREANDA-NEWS. July 6, 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 was investigating ways to address the earnings volatility resulting 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.