VIMPELCOM WAVERS OVER REMAINING 10% IN ARMENTEL

RIA Novosti, Russia
Dec 6 2006

MOSCOW, December 6 (RIA Novosti) – VimpelCom [RTS: VIMP], Russia’s
second-largest mobile operator, has yet to decide on the acquisition
of the remaining 10% stake in Armenian telephone company Armentel,
a company official said Wednesday.

VimpelCom, best known for its Beeline brand, finalized a deal with
Hellenic Telecommunications Organization SA (OTE) in mid-November to
buy from the Greek telecoms group its 90% stake in the company for
341.9 million euros ($440 million).

Through the deal, VimpelCom will also take on Armentel’s debt, which
totals around 40 million euros ($51 million).

The Armenian government earlier proposed selling to VimpelCom the
remaining 10% stake, on condition that the company does not attempt
to monopolize the South Caucasus country’s telecoms market.

"Certainly, VimpelCom is interested in a 100% stake in Armentel,"
said Vladimir Ryabokon, a vice president and corporate development
chief. "The issue is being discussed, and a final decision has yet
to be made."

Andrei Bliznyuk, VimpelCom’s candidate for the post of Armentel
director, earlier said the Russian company plans to invest around
$100 million in the Armenian telecoms sector in 2007.

Greece’s OTE bought Armentel in 1997 for $142.5 million, and has
since invested $300 million in the company, whose earnings in 2005
stood at 110 million euros ($140 million).

Armentel has about 600,000 fixed-line and 400,000 mobile service
subscribers, and uses the GSM 900 and CDMA standards.

As well as Russia, VimpelCom operates in the former Soviet republics
of Kazakhstan, Georgia, Tajikistan, Ukraine, and Uzbekistan.