The Principal Agreement contemplates that VimpelCom will invest up to $1 billion over the next several years in the development of a GSM mobile network and provide technical and operational expertise to the joint venture. In accordance with Vietnamese investment laws, VimpelCom will own a minority voting stake in the joint venture. However, the Principal Agreement contemplates that VimpelCom will hold a majority of the economic interest in the joint venture and will exercise significant influence over the joint venture’s operations.

Alexander Izosimov, CEO of VimpelCom said, “We are very excited about this transaction, our first expansion outside of Russia and the CIS. Vietnam is a very attractive market, with a growing population of approximately 85 million people and mobile penetration of approximately 32%. The country has joined the WTO and the economy is developing rapidly. Overall we view this as a great growth opportunity for VimpelCom and its shareholders.”

The establishment of the joint venture and the terms being discussed by the parties remain subject to negotiation and execution of final joint venture documents, receipt of regulatory approvals (including licenses and frequencies) and corporate approvals of the parties.