VimpelCom Acquires Armenian Telecom Operator

Wireless IQ , NY
Nov 3 2006

November 3, 2006 | 11:32 AM

Vimpel-Communications today announced that it has signed an agreement
with Hellenic Telecommunications Organization ("OTE") to acquire 90%
of CJSC Armenia Telephone Company. The purchase price for 90% of
Armentel is euro 341.9 million plus the assumption of approximately
euro 40 million in net debt and obligations.

Armentel is a fixed-line and mobile operator in Armenia with licenses
in the GSM-900 and CDMA standards. Armentel’s subscriber base
includes approximately 600,000 fixed-line subscribers and 400,000
GSM subscribers.

The closing of the purchase of Armentel by VimpelCom is subject to
the fulfillment of certain conditions, including approval by the
government of Armenia.

Commenting on the signing of the purchase agreement, Alexander
Izosimov, Chief Executive Officer of VimpelCom, said: "We are
pleased to announce the signing of this agreement that will enable
our entry into Armenia, the sixth CIS country outside of Russia in
which VimpelCom will have operations. With approximately 40% mobile
market share, Armentel occupies a strong position in the Armenian
market and we will work to enhance this position."

The VimpelCom Group includes cellular companies operating in Russia
and Kazakhstan and recently acquired cellular operators in Ukraine,
Tajikistan, Uzbekistan, and Georgia. The VimpelCom Group’s cellular
license portfolio covers a territory with a population of about 237
million. Geographically, it covers 78 regions of Russia (136.5 million,
representing 94% of the Russia’s population), and the entire territory
of Kazakhstan, Ukraine, Uzbekistan, Tajikistan, and Georgia.