PRESS: RUSSIA’S VIMPELCOM MAY GET 100% IN ARMENIA’S ARMENTEL

Prime-Tass Business News Agency, Russia
November 8, 2006 Wednesday

Russia’s second largest mobile operator VimpelCom may get full
control over ArmenTel, the incumbent telecoms operator in Armenia,
a source in the Armenian government said, Vedomosti business daily
reported Wednesday.

The government may sell its 10% stake in ArmenTel to VimpelCom if the
Russian operator agrees to give up ArmenTel’s current monopoly status
on the fixed-line market, the source said, the daily reported. A
spokesperson with VimpelCom said that the company was ready to
meet the condition and start talks with the Armenian government,
the daily reported.

On November 3, VimpelCom said that it had signed an agreement
to acquire a 90% stake in ArmenTel from Greece’s Hellenic
Telecommunications Organization SA (OTE) for 341.9 million euros plus
assuming ArmenTel’s debt of about 40 million euros.

The Armenian government holds the remaining 10% stake in ArmenTel.

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.

Armenia’s population is about 3.2 million people.

VimpelCom operates in Russia, Kazakhstan, Tajikistan, Ukraine and
Uzbekistan and plans to launch services in Georgia soon.