The act with preliminary conclusions for 2002 did not challenge the deductibility of expenses incurred by VimpelCom in connection with the agency relationship between VimpelCom and its wholly owned subsidiary, KB Impuls, which holds the GSM license for the city of Moscow and the Moscow region.

The act for 2002 is a preliminary notice and is not a final tax claim or demand by the inspectorate. VimpelCom is reviewing the preliminary conclusions in this act, and is currently considering, in light of the circumstances, whether or not to object to some or all of the provisions of the act.

VimpelCom is currently in constructive discussions with the tax authorities regarding the previously received preliminary conclusions of a 2001 tax review and a final decision with respect to such year has not yet been received. The Company has not been notified that a review of VimpelCom's tax filing for 2003 has begun, however the Company would expect such a review to be initiated at some point in the future and the Company cannot predict the amounts that may be claimed in such act when it is issued.

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