ARMENTEL LOSES MONOPOLY OVER INTERNET IN FEBRUARY 2007

Yerevan, December 21. ArmInfo. Government of Armenia ratified a
decree of the Public Services Regulatory Commission (PSRC), dated 18
December 2006, on monopoly limit for CC ArmenTel in the Internet from
1st February 2007. The decree concerned ArmenTel’s data transformation
and voice services as well.

It is expected that ArmenTel will be deprived of other exclusive
rights such as IP- telephony and wire connection by November 2007.

Complete liberalization of Armenian telecommunication market is a key
condition of PC VimpelCom’s negotiations with Armenian government on
sale of governmental 10% of ArmenTel’s shares. Presently, VimpelCom
owns 90% of Armentel’s shares.