VimpelCom announces second quarter and six month 2003 financial and operating results
28 Aug 2003

Moscow and New York (August 28, 2003) - Open Joint Stock Company "Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP) today announced its financial and operating results for the quarter ended June 30, 2003. VimpelCom reported continued subscriber growth and an increase in net operating revenues, EBITDA and net income. For the quarter ended June 30, 2003, VimpelCom reported net operating revenues of $304.4 million, a 75.6% increase from $173.4 million reported for the same period in 2002; EBITDA of $139.9 million, a 95.0% increase from $71.8 million reported for the same period in 2002; and net income of $52.6 million, an increase of 139.9% from $21.9 million reported for the same period in 2002. The Company's EBITDA margin for the second quarter of 2003 was approximately 46.0% compared to approximately 41.4% for the same period in 2002. Total operating revenues, excluding inter-company transactions, for the Moscow license area and the regions in the second quarter of 2003 were $216.72 million and $87.72 million, respectively. Net income for the Moscow license area and the regions in the second quarter of 2003 was $47.08 million and $9.03 million, respectively.

As of June 30, 2003, there were approximately 7.43 million subscribers on wireless networks operated by VimpelCom and its subsidiaries, an increase of approximately 126.9% compared to June 30, 2002, including approximately 4.43 million subscribers in the Moscow license area and approximately 3.00 million subscribers in the regions. As of today, there are approximately 8.54 million subscribers on wireless networks operated by VimpelCom and its subsidiaries, with approximately 4.84 million subscribers in the Moscow license area and approximately 3.70 million subscribers in the regions.

Based on independent sources, VimpelCom estimates that its market share in the Moscow license area was 48.8% as of June 30, 2003, compared to 52.0% as of June 30, 2002 and that its overall market share in Russia was 30.0% as of June 30, 2003, compared to 26.1% as of June 30, 2002.

Commenting on today's announcement, Jo Lunder, Chief Executive Officer of VimpelCom, said, "Our second quarter results reflect continued strong financial performance as a result of revenue growth and strict cost control. We are particularly pleased with our successful regional expansion, which has resulted in further improvement at the net income level. It is now evident that the regions are growing faster than Moscow, and that we are well positioned to capture this growth opportunity. The Company is entering a new phase with our Moscow and regional branches being equally important parts of our business performance."

VimpelCom

Altimo, a leading private equity group, operating on some of the world's most desirable and potentially lucrative mobile telecommunications markets, was created in 2005 from Alfa Telecom, which itself was established in 2004 to hold the telecoms investments of the Alfa Group Consortium (Golden Telecom, Inc., Turkcell Iletisim Hizmetleri A.S., Kyivstar GSM, MegaFon, VimpelCom, Sky Mobile). Those assets are in Russia, the CIS and other promising emerging markets.

VimpelCom consists of telecommunications operators providing voice and data services through a range of wireless, fixed and broadband technologies. The Group includes companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia, in territories with a total population of about 340 million. The Group companies provide services under the "Beeline" brand.  VimpelCom was the first Russian company to list its shares on the New York Stock Exchange (under the symbol "VIP").  In Q1 2008, VimpelCom acquired 100% of the oustanding share capital of Golden Telecom, a leading facilities-based provider of integrated telecommunications and Internet services in Russia and the CIS.

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