Pursuant to the terms of the Merger previously approved by VimpelCom's shareholders in October 2003, Alfa Group and Telenor will receive, respectively, 7,300,680 and 3,648,141 newly-issued common shares of VimpelCom in exchange for their shares in VimpelCom-Region. Upon completion of the Merger, Telenor will own approximately 26.6% of VimpelCom voting stock and 29.9% common stock, and Alfa Group will own approximately 32.9% of VimpelCom voting stock and 24.5% common stock.

VimpelCom-Region currently holds telecommunications licenses and related frequencies and permissions for the Central, Siberian, Volga, South and Northwest regions of Russia. Following discussions with officials at the Ministry of Information Technology and Communications of the Russian Federation (the "Ministry") regarding the Merger and the Law on Communications, VimpelCom has been informed by the Ministry that the current legal and regulatory regime requires that VimpelCom file an application for re-issuance of VimpelCom-Region's licenses to VimpelCom within 30 days after the Merger Date (rather than applying for the transfer of such licenses and permissions prior to the Merger Date as previously contemplated by the Company). The Ministry has also confirmed that the term of validity of the re-issued licenses shall be the same as that of the original VimpelCom-Region licenses. In addition, the Ministry has provided guidance on the regulations governing the procedure for re-issuance of ancillary permissions to VimpelCom following the Merger.

Commenting on today's announcement, Alexander Izosimov, Chief Executive Officer of VimpelCom, said, "We are pleased to announce that we are taking the final steps to conclude the Merger of VimpelCom-Region into VimpelCom which will give all of our shareholders full exposure to the tremendous growth in the regions. With the cooperation of the Ministry the license re-issuance process should go smoothly without any disruptions in service."

VimpelCom is a leading provider of telecommunications services in Russia and Kazakhstan, operating under the "Bee Line GSM" brand in Russia and "K-mobile" and "EXCESS" brands in Kazakhstan. The VimpelCom Group's license portfolio covers approximately 94% of Russia's population (136 million people), including the City of Moscow, the Moscow Region and the City of St. Petersburg, as well as the entire territory of Kazakhstan. VimpelCom was the first Russian company to list its shares on the New York Stock Exchange ("NYSE"). VimpelCom's ADSs are listed on the NYSE under the symbol "VIP".

© "MForum.ru"