ARMENIAN GOVT. TO SELL 10% IN ARMENTEL TO RUSSIA’S VIMPELCOM

RIA Novosti, Russia
March 22 2007

MOSCOW, March 22 (RIA Novosti) – Armenia’s government said Thursday
it would sell its 10% stake in Armentel for 38 million euros ($48.9
million) to Russian mobile phone operator VimpelCom [RTS: VIMP],
making it the sole owner of the Armenian telecommunications group.

Last November, VimpelCom acquired 90% of Armentel’s stock from Hellenic
Telecommunications Organization SA (OTE) for 341.9 million euros
($440 million).

A spokesmen for the Armenian government said the price quoted for the
10% stake accounts for one-ninth of the amount VimpelCom paid to the
Greek company for the 90% stake in Armentel.

The Armenian government first proposed selling the remainder to
VimpelCom last year, on condition that the company does not try to
monopolize the post-Soviet South Caucasus nation’s telecoms market.

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

Armentel is Armenia’s landline phone monopoly, which also offers
Internet connection to providers and end-users. In addition, it is
one of the two Armenian mobile phone operators, with about 400,000
subscribers across the country.

VimpelCom is Russia’s second-largest mobile phone services provider,
best known for its Beeline brand. It also operates in the former Soviet
republics of Kazakhstan, Georgia, Tajikistan, Ukraine, and Uzbekistan.