[Letterhead of Vimpel-Communications]
FOR IMMEDIATE RELEASE
VIMPELCOM, ALFA GROUP AND TELENOR CLOSE $175.44 MILLION INVESTMENT
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- INVESTMENT FACILITATES VIMPELCOM-REGION'S CONTINUED RAPID NATIONAL EXPANSION -
- PRESIDENT XXXXX OF RUSSIA AND PRIME MINISTER XXXXXXXX OF NORWAY
PRESENT AT SIGNING CEREMONY IN OSLO -
Moscow, Oslo and New York (November 12, 2002) - Open Joint Stock Company
"Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP) today
announced the closing of a $175.44 million investment in its regional
subsidiary, VimpelCom-Region. VimpelCom, affiliates of Alfa Group of Russia and
Telenor each invested $58.48 million in VimpelCom-Region. Documents consummating
the closing were signed in Oslo today in the presence of Russian President
Xxxxxxxx Xxxxx, who is paying an official visit to Norway, and the Norwegian
Prime Minister Xxxxx Xxxxx Xxxxxxxx.
Today's closing represents the second tranche of equity investments into
VimpelCom-Region. The third and final investment tranche is scheduled to be
completed by November 2003 when Alfa Group is to invest an additional $58.52
million in VimpelCom-Region. Following the completion of this second investment
tranche, XxxxxxXxx's economic interest in VimpelCom-Region is approximately 65%,
while Alfa Group and Telenor each hold approximately 17.5% interests.
Commenting on today's announcement, Xx Xxxxxx, Chief Executive Officer of
VimpelCom, said, "We see this second phase of investment in VimpelCom-Region as
further evidence of the strong commitment of our strategic partners, Alfa Group
and Telenor, to the development of our Company and its regional expansion.
VimpelCom-Region will use the proceeds from this investment tranche to continue
its network and infrastructure build-out in the regions of Russia."
The Alfa Group of companies was established in Russia in 1988 and has evolved
today into one of Russia's largest financial industrial groups. Alfa Group
Consortium is active in the banking, insurance, telecommunications, asset
management, oil, gas and other primary commodities, food and retail sectors.
Alfa Eco is the group's main trading and industrial arm with interests in oil,
metals, mining, telecommunications, foodstuffs and beverages. Alfa Bank is the
largest privately-owned bank in Russia with an extensive nationwide network of
more than 70 branches, and subsidiaries in Ukraine, Kazakhstan, the United
Kingdom, the United States and the Netherlands. Alfa Bank holds a strategic
stake in Golden Telecom (NASDAQ: GLDN), a provider of integrated
telecommunications services throughout Russia and other countries of the
Commonwealth of Independent States.
Telenor ASA, headquartered in Oslo, Norway, is an international provider of high
quality telecommunications, data and media communication services. Telenor
Mobile - the mobile business area of Telenor - is one of the world's most
advanced mobile operators with a leading position in the Norwegian market and
with ownership in 14 mobile companies throughout the world. The total number of
mobile subscribers as of September 30, 2002 was 11.6 million - 2.4 million in
Norway and 9.2 million abroad, calculated on the basis of Telenor Mobile's
ownership interests in each company. Telenor is listed on the Oslo Stock
Exchange (TEL) and on NASDAQ in New York (TELN).
VimpelCom is a leading provider of telecommunications services in Russia,
operating under the "Bee Line" family of
-more-
VimpelCom, Alfa Group And Telenor Close $175.44 Million Investment in Vimpel-Com
Region
Page 2 of 2
brand names, which are among the most recognized brand names in Russia. The
VimpelCom Group's license portfolio covers approximately 79% of Russia's
population (115 million people), including the City of Moscow, the Moscow Region
and the City of St. Petersburg. VimpelCom was the first Russian company to list
its shares on the New York Stock Exchange ("NYSE"). VimpelCom's ADSs are listed
on the NYSE under the symbol "VIP". VimpelCom's convertible notes are listed on
the NYSE under the symbol "VIP 05".
This press release contains "forward-looking statements", as the phrase is
defined in Section 27A of the Securities Act and Section 21E of the Exchange
Act. These statements relate, in part, to the consummation of the third phase of
the transaction described herein which is subject to regulatory and certain
other approvals, as well as certain other conditions precedent. If any of the
approvals are not obtained or any condition precedent is not met, the third
phase of the transaction may not be consummated. We cannot assure you that Alfa
Group's additional equity investment in or prior to November 2003 will be made
on a timely basis or at all. These statements also relate to the Company's
development and are based on Management's best assessment of the Company's
strategic and financial position and of future market conditions and trends.
Certain factors that could affect this transaction and the Company's development
include the risks described in the Company's Annual Report on Form 20-F for the
year ended December 31, 2001 and other public filings made by the Company with
the United States Securities and Exchange Commission, which risk factors are
incorporated herein by reference. VimpelCom disclaims any obligation to update
developments of these risk factors or to announce publicly any revision to any
of the forward-looking statements contained in this release, or to make
corrections to reflect future events or developments.
For more information, please contact:
Xxxxxx Xxxxxx Xxxxxxxxxxx Xxxxxxxxxx
VimpelCom (Moscow) Edelman Financial Worldwide
Tel: 0(000) 000-0000 Tel: 0(000) 000-0000
xxxxxxx@xxxxxxxxx.xxx xxxxxxxxxxx.xxxxxxxxxx@xxxxxxx.xxx
