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VimpelCom Acquires Tacom

VimpelCom acquires 60% stake in Tacom, a wireless operator in Tajikistan, for $12 million

December 30, 2005

1 Min Read

MOSCOW and NEW YORK -- Open Joint Stock Company "Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP) today announced that it has acquired a 60% interest in Limited Liability Company "Tacom", a cellular operator in Tajikistan. The Company paid a purchase price of US$12 million for the acquired stake. Tacom holds national GSM-900/1800, UMTS, CDMA 450 and AMPS licenses.

In connection with the acquisition of its stake in Tacom, the Company entered into a shareholders agreement with the remaining shareholders in Tacom, who hold a 40% interest in Tacom. One of the remaining shareholders is a beneficial owner and Chairman of Joint Stock Company "Orienbank", the largest bank in Tajikistan. Among other things, the shareholders agreement grants options to VimpelCom to acquire up to the entire interest held by the remaining shareholders under certain circumstances, thus allowing VimpelCom to own up to 100% of Tacom. The exercise prices for the options are based upon a prescribed formula.

Commenting on today's announcement, Alexander Izosimov, Chief Executive Officer of VimpelCom, said, "We are pleased that we are starting operations in Tajikistan. We will develop and integrate Tacom into the Beeline network and use our unified business approach. Given the latest economic performance of the country and penetration rate of only 4% we see good growth opportunities in Tajikistan."

VimpelCom Ltd. (NYSE: VIP)

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