NO INCREASE IN PRICE FOR FIXED-LINE TELEPHONE EXPECTED IN ARMENIA

ARKA
June 20, 2008

YEREVAN, June 20. /ARKA/. ArmenTel company is not planning to increase
prices for fixed-line communication, General Director of ArmenTel
closed joint stock company (Beeline brand) Neycho Velichkov told
journalists. The company has no intention to reduce the monthly
no-charge call limit either, he said.

Yet, he reported, the company is negotiating with the Public Services
Regulatory Commission over possible balancing of the current prices.

"We understand that prices for telecommunication services are falling,
and that the Armenian market has great opportunities for growth, but
this does not mean than we have to constantly subsidize one direction
of our activities at the expense of other services," Velichkov said.

He pointed out that the company intends to go back to the system
of balanced prices among others through expansion of the range of
services offered.

The current price for fixed-line telephone communication is 1,100 drams
including VAT (about $3.15) for population and 4,800 drams (about $14)
for organizations. No-charge call limit is 360 minutes for digital
lines. After that, the cost is 5drams per minute starting from the
361st minute and 9drams per minute starting from the 1601st minute.

"ArmenTel" closed joint stock company is a daughter enterprise
of "Vimpelcom" Russian telecommunication company (Beeline
trademark). It provides services to about 640,000 subscribers of
stationary communication and over 450,000 subscribers of mobile
communication. ($1=304.59drams).