The final decision reflects a significant reduction from the amount of 4.4 billion rubles or approximately US$157 million in additional taxes, fines and penalties, set forth in the preliminary act of the tax inspectorate for 2001. The final decision also stated that the tax authorities accepted the Company's objections regarding the KB Impuls agency relationship and withdrew the related claimed amount.

A significant portion of the tax claim exclusive of fines and penalties (252.2 million rubles or approximately US$9.1 million) is the result of the authorities claiming that, in their opinion, value added tax offsets were made incorrectly. The Company plans to pay the value added taxes for 2001 and make offsets of these amounts in later tax years.

Although VimpelCom does not agree with the claims of the tax authorities, the Company plans to pay the claimed amount and is considering, under the current circumstances, whether to appeal some or all provisions of this final decision for 2001.

Commenting on today's announcement, Alexander Izosimov, Chief Executive Officer of VimpelCom, said, "We are grateful for the active role of several senior government officials, including officials who are very knowledgeable of the Russian tax code. The overall process between the tax authorities and ourselves was constructive."

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