VimpelCom to Acquire Armenian Telecom Operator

Panorama.am
20:34 03/11/06

OAO VimpelCom, Russia"s second-largest cellular company, said today
it agreed to buy 90 percent of an Armenian phone company for 341.9
million euros ($434.2 million), as it looks to expand beyond the
saturated Russian market.

VimpelCom has signed an agreement with Greece"s Hellenic
Telecommunications Organization SA, the Moscow-based company said
today in a PRNewswire statement. The company will also assume about
40 million euros in net debt and obligations.

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."

VimpelCom is also active in Ukraine, Kazakhstan, Tajikistan, Uzbekistan
and Georgia./Panorama.am/