MOSCOW -- Open Joint Stock Company "Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP - News) today announced that it has signed an agreement with Hellenic Telecommunications Organization ("OTE") to acquire 90% of CJSC Armenia Telephone Company ("Armentel"). The purchase price for 90% of Armentel is euro 341.9 million plus the assumption of approximately euro 40 million in net debt and obligations.Armentel is a fixed-line and mobile operator in Armenia with licenses in the GSM-900 and CDMA standards. Armentel's subscriber base includes approximately 600,000 fixed-line subscribers and 400,000 GSM subscribers.

The closing of the purchase of Armentel by VimpelCom is subject to the fulfillment of certain conditions, including approval by the government of Armenia.

Commenting on the signing of the purchase agreement, Alexander Izosimov, Chief Executive Officer of VimpelCom, said: "We are pleased to announce the signing of this agreement that will enable our entry into Armenia, the sixth CIS country outside of Russia in which VimpelCom will have operations. With approximately 40% mobile market share, Armentel occupies a strong position in the Armenian market and we will work to enhance this position."

Vimpel-Communications (NYSE: VIP)