Further Market Consolidation in Russia

Russia's VimpelCom has taken control of Orensot, the largest cellular operator in the Orenburg region of Russia. The acquisition was made through VimpelCom-Region, VimpelCom's subsidiary. VimpelCom-Region purchased 77.597% of the outstanding shares of Orensot for a total acquisition cost of approximately US$14 million (including investment banking fees).

Orensot is a D-AMPS and GSM-900/1800 operator with licenses to operate in the Orenburg region of Russia. Orensot's subscriber base as of June 30, 2002 was approximately 65,800 (including 46,100 GSM subscribers) which, the Company estimates, represented a market share of approximately 66% in the Orenburg region.

Commenting on the purchase, Alexey Mischenko, General Director of VimpelCom-Region, said, "We are very pleased to announce the acquisition of Orensot. It is a market leader in a region where we did not have a GSM license. Orensot has a solid balance sheet and has run a profitable business. Our acquisition of Orensot is part of VimpelCom's strategy to build a GSM national footprint."

The Orenburg region has a population of 2.2 million, including 550,000 in the city of Orenburg. Cellular penetration in the region is approximately 4.5% as of June 30, 2002 according to VimpelCom's estimates.'"

Posted to the site on 31st July 2002