MOSCOW and NEW YORK -- Open Joint Stock Company "Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP) today announced that, following the shareholder approval at the extraordinary meeting of shareholders held on September 14, 2005 (the "EGM"), it has consummated the purchase of CJSC "Ukrainian Radio Systems" ("URS") for an aggregate cash purchase price of $231.3 million. This price includes the purchase price of $206.5 million, plus certain expenditures in the amount of $24.8 million incurred by URS with prior approval from VimpelCom in accordance with the EGM approval. VimpelCom also assumed debt of approximately $23.5 million (including $22.8 million of indebtedness owed to an affiliate of the sellers).

Commenting on today's announcement, Alexander Izosimov, Chief Executive Officer of VimpelCom, said, "We are very pleased to announce this acquisition in Ukraine as VimpelCom's second expansion outside of Russia. We believe our entry into Ukraine is strategically important for VimpelCom and will increase shareholder value."

Following VimpelCom's acquisition of URS, Ericsson, a leading telecom equipment supplier, agreed to swap URS' existing equipment. Ericsson will pay approximately $52.6 million in cash for the existing equipment. URS has agreed to purchase $200 million worth of equipment and services from Ericsson to build out its network during the next three years. This agreement is part of an overall deal for the VimpelCom Group, under which it intends to purchase $500 million of equipment and services from Ericsson at an advantageous pricing level.

Commenting on this news, Mr. Izosimov said, "We are happy to expand our partnership with Ericsson into Ukraine. As a result of this agreement, we will be able to upgrade the network with state-of-the-art equipment and have tangibly reduced the originally budgeted level of investments required to build out the URS network through 2007."

JSC Vimpel-Communications (VimpelCom)