VimpelCom Ltd. Announces Launch of Exchange Offer for OJSC VimpelCom Shares and American Depositary Shares

Platform for Value Creation in Global Emerging Markets Telecoms Amsterdam, 9 February 2010: VimpelCom Ltd. today announces the commencement of its exchange offer to holders of shares and American Depositary Shares (“ADSs”) of Open Joint Stock Company "Vimpel-Communications" (“OJSC VimpelCom”) (NYSE:VIP), in which it will offer depositary shares representing VimpelCom Ltd. shares ("DRs") or a nominal cash amount in exchange for OJSC VimpelCom securities (the “Exchange Offer”). Immediately following the successful completion of the Exchange Offer, VimpelCom Ltd. intends to acquire all of the outstanding shares of Closed Joint Stock Company "Kyivstar G.S.M." (“Kyivstar") in exchange for VimpelCom Ltd. DRs (collectively referred to as the "Transaction").

Key benefits of the Transaction for shareholders of OJSC VimpelCom include:

• Ownership of Kyivstar, a leading mobile operator in Ukraine; Improved strategic profile with potential for operational improvements and efficiencies;
• Creation of a robust corporate and governance structure which will align the interests of all shareholders;
• Committed policy to pay regular and meaningful dividends; and Strong platform to unlock future growth and shareholder value creation.

Alexander Izosimov, CEO of VimpelCom Ltd., commented: “Today’s announcement is another big step towards launching VimpelCom Ltd. as a leading value creation platform in global emerging markets telecoms. With local leadership across Russian, Ukrainian and CIS markets, VimpelCom Ltd will have the right corporate and governance structure to drive further growth, profitability, cash flows and total returns for shareholders. The proposed transaction will unlock the full potential of both OJSC VimpelCom and Kyivstar and offer further value creation opportunities through operational improvements, while preserving the drivers of both companies’ past performance and earnings resilience. Initial feedback from investors has been extremely supportive, and I am confident the Exchange Offer will be a great success.”

On completion of the Transaction, VimpelCom Ltd. will be a leading mobile operator in Russia, Ukraine and the CIS, with a significant presence in Southeast Asia, with:

• Over 87.7 million subscribers as of September 30, 2009
• Pro forma net operating revenues of USD 12.6 billion for the year ended December 31, 2008 and USD 7.4 billion for the nine months ended September 30, 2009
• Pro forma net income for 2008 of USD 1.1 billion and USD 1.1 billion for the nine months ended September 30, 2009
• Pro forma adjusted OIBDA of USD 6.3 billion with OIBDA margin of 49.8% for 2008, and of USD 3.8 billion with OIBDA margin of 51.1% for the nine months ended September, 2009

Jo Lunder has been designated as Chairman of the Board of VimpelCom Ltd. Mr. Lunder served as Chief Operating Officer of OJSC VimpelCom between 1999 and 2001 and Chief Executive Officer of OJSC VimpelCom between 2001 and 2003. He was Chairman of the Board of OJSC VimpelCom between 2003 and 2005. From 1993 to 1999, Mr. Lunder was employed in various capacities by Telenor and its affiliates.

Alexander Izosimov has been appointed as Chief Executive Officer of VimpelCom Ltd. He was CEO of OJSC VimpelCom between 2003 and 2009 and has previously held senior positions at McKinsey & Co. and Mars. Mr. Izosimov is currently Chairman of the GSM Association.

Exchange Offer and Terms

Telenor ASA (“Telenor”) and Altimo Holdings & Investments Ltd. (“Altimo”), the majority owners of OJSC VimpelCom, have agreed, subject to the conditions described below, to contribute their respective shareholdings in OJSC VimpelCom and their combined 100% shareholding in Kyivstar to create VimpelCom Ltd., a leading emerging markets mobile operator with enhanced market presence and growth, profitability and cash flow generation prospects. The exchange ratio used in determining the post-contribution equity ownership by OJSC VimpelCom's and Kyivstar's respective shareholders is 3.4:1.

In the Exchange Offer, VimpelCom Ltd. is offering:

• to all holders of OJSC VimpelCom ADSs: one VimpelCom Ltd. common DR (representing one VimpelCom Ltd. common share) in exchange for each OJSC VimpelCom ADS;

• to all holders of OJSC VimpelCom common shares: twenty VimpelCom Ltd. common DRs in exchange for each OJSC VimpelCom common share; and to all holders of OJSC VimpelCom preferred shares: twenty VimpelCom Ltd. preferred DRs (each representing one VimpelCom Ltd. preferred share) in exchange for each OJSC VimpelCom preferred share.

Alternatively, holders of OJSC VimpelCom shares and ADSs may elect to receive a cash payment of 0.01 Russian roubles for each common share or preferred share and 0.0005 Russian roubles for each ADS. This nominal cash consideration is being offered to comply with Russian regulations and is not intended to constitute fair market value. Accordingly, VimpelCom Ltd. urges holders of OJSC VimpelCom shares and ADSs not to elect to receive cash consideration.

The Exchange Offer comprises a U.S. Offer and a Russian Offer. The U.S. Offer is open to all U.S. holders of OJSC VimpelCom shares and all holders of OJSC VimpelCom ADSs, wherever located. The Russian Offer is open to all holders of OJSC VimpelCom shares, wherever located. However, only shareholders who are “qualified investors” under Russian law may receive DRs in exchange for their shares tendered into the Russian Offer.

Successful completion of the Exchange Offer is contingent on, among other things, more than 95% of OJSC VimpelCom's outstanding shares being tendered in the Exchange Offer, all legal and regulatory proceedings involving Altimo and Telenor being terminated or withdrawn and the receipt of required regulatory and other approvals, including approvals by the anti-monopoly authorities in Russia and Ukraine. The Russian Governmental Commission on Foreign Investments announced its approval of the proposed transaction under the Russian Foreign Investment Law on February 3, 2010.

It is expected that, following completion of the Exchange Offer, OJSC VimpelCom will be delisted from the NYSE and will no longer be traded on the Russian Trading System.

In connection with the U.S. Offer, VimpelCom Ltd. has filed a registration statement on Form F-4 with the United States Securities and Exchange Commission (the "SEC") that contains a prospectus and related U.S. Offer acceptance materials. VimpelCom Ltd. will mail the prospectus, together with the related U.S. Offer acceptance materials, to U.S. holders of OJSC VimpelCom shares and to all holders of OJSC VimpelCom ADSs, wherever located. Holders of these securities are urged to read the prospectus and related U.S. Offer acceptance materials carefully because they contain important information. Copies of the prospectus and related U.S. Offer acceptance materials may be obtained from Innisfree M&A Incorporated, the information agent for the U.S. Offer, at the following telephone numbers: 1-877-800-5190 (for shareholders holders and ADS holders) and 1-212-750-5833 (for banks or brokers). Copies of the registration statement and exhibits also may be obtained free of charge from the SEC’s website at www.sec.gov, and from VimpelCom Ltd.’s website at www.vimpelcomlimited.com.

In connection with the Russian Offer, VimpelCom Ltd. has filed a voluntary tender offer document with the Russian Federal Service for the Financial Markets. OJSC VimpelCom will deliver the Russian voluntary tender offer document, together with the recommendations of its board of directors and related Russian Offer acceptance materials, to holders of OJSC VimpelCom shares. Copies of the Russian voluntary tender offer document and other documents related to the Russian offer may be obtained from zao "national registration company" ("nrk"), the agent for the Russian offer, at the following telephone numbers: +7(495) 440-6324/25/45 ext.205, or from OJSC VimpelCom at the following telephone number : +7(495) 974 5888.

Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. Incorporated are acting as dealer managers for the U.S. Offer.

Exchange Offer Timetable

The Exchange Offer has been launched today, February 9, 2010. The U.S. Offer will close at 5:00 pm New York City time on April 15, 2010 and the Russian Offer will close at 11:59 pm Moscow time on April 20, 2010, unless extended.

Holders of OJSC VimpelCom shares and ADSs who wish to participate in the U.S. Offer must deliver their U.S. Offer acceptance materials to the U.S. exchange agent prior to the expiration of the U.S. Offer in accordance with the instructions contained therein. Holders of OJSC VimpelCom shares who wish to participate in the Russian Offer must deliver their Russian Offer acceptance materials to the Russian exchange agent prior to the expiration of the Russian Offer in accordance with the instructions contained therein.

Transaction Rationale

The combination of OJSC VimpelCom and Kyivstar into one consolidated company will create a stronger business with enhanced market presence and growth prospects, leading to substantial value creation potential for OJSC VimpelCom shareholders and benefits for all of our shareholders, subscribers and employees. In particular, the Transaction will:

Create a leading emerging markets mobile operator with over 87.7 million subscribers as of September 30, 2009, USD 12.6 billion pro forma combined net operating revenues for the 2008 fiscal year and USD 7.4 billion combined pro forma net operating revenues for the nine months ended September 30, 2009;

Improve OJSC VimpelCom’s and Kyivstar’s positions in their existing markets, enabling them to take advantage of attractive opportunities for in-market consolidation and raising the overall profile of the combined group among its peers and competitors;

Strengthen OJSC VimpelCom’s and Kyivstar’s strategic profiles; Enable OJSC VimpelCom and Kyivstar to be managed on a unified basis, with the potential for operational improvements and efficiencies; and Align the interests of all shareholders of OJSC VimpelCom and Kyivstar by resolving outstanding disputes between shareholders and creating a basis for a robust corporate and governance structure.

VimpelCom Ltd.’s immediate focus will be to optimise its financial, operational and marketing efficiencies in its core markets. In the medium term, VimpelCom Ltd.'s strategy will be to explore opportunities for further expansion in emerging markets, including Asia and Africa, with the goal of creating value for shareholders. VimpelCom Ltd.’s dividend policy will be to distribute annually at least 50% of free cash flow from Kyivstar and 50% of free cash flow from OJSC VimpelCom’s Russian operations.

Corporate and Governance Structure

VimpelCom Ltd.'s majority shareholders are Altimo and Telenor, which will hold 43.9% and 35.4% of the voting rights and 38.5% and 38.8% of the economic rights, respectively (assuming 100% acceptance of the Exchange Offer), following successful completion of the Transaction. Minority shareholders in VimpelCom Ltd. will represent 20.7% of the voting rights and 22.7% of the economic rights (assuming 100% acceptance of the Exchange Offer) following successful completion of the Transaction.

VimpelCom Ltd. is incorporated in Bermuda, headquartered in the Netherlands, and its common DRs are intended to be listed on the NYSE. Altimo and Telenor have agreed a clear and robust corporate governance structure and have entered into a shareholders agreement governed by New York law that is designed to avoid deadlock situations. Any future shareholder disputes will be resolved by arbitration proceedings in London under UNCITRAL arbitration rules.

VimpelCom Ltd.'s governance structure is also designed to align the interests of all shareholders. The Chairman and CEO of VimpelCom Ltd. will be unaffiliated with Telenor and Altimo. The Board of Directors will be comprised of three unaffiliated members, three members designated by Telenor and three members designated by Altimo, without any veto rights for any party. The affirmative vote of a majority of the independent, unaffiliated shareholders will be required for certain actions.

Summary Financial Data

OJSC VimpelCom reported net operating revenues of USD 10.1 billion for the year ended December 31, 2008 and USD 6.4 billion for the nine months ended September 30, 2009. Net income for the year ended December 31, 2008 was USD 587.3 million and for the first nine months of 2009 was USD 836.3 million. Adjusted OIBDA margin for 2008 was 48.0% and for the first nine months of 2009 was 49.8%.

Kyivstar reported revenues of UAH 12.7 billion for the year ended December 31, 2008 and UAH 8.6 billion for the nine months ended September 30, 2009. Kyivstar’s profit for 2008 was UAH 5.1 billion and for the first nine months of 2009 was UAH 2.8 billion. Adjusted OIBDA margin for 2008 was 59.2% and for the first nine months of 2009 was 55.5%.

On a pro forma basis, VimpelCom Ltd. would have reported net operating revenues of USD 12.6 billion for the year ended December 31, 2008 and USD 7.4 billion for the nine months ended September 30, 2009. Pro forma net income for 2008 would have been USD 1.1 billion and for the nine months ended September 30, 2009 would have been USD 1.1 billion. Pro forma adjusted OIBDA margin for 2008 would have been 49.8% and for the first nine months of 2009 would have been 51.1%.

Да, когда-то и "Билайн" был первым на рынке. А во что его превратили... Одна надежда, что на этот раз к норвежцам будут прислушиваться больше.

Cовет директоров ОАО "Вымпелком" рекомендует принять добровольное предложение Vimpelcom ltd.

Москва и Нью-Йорк, 9 февраля 2010 г., пресс-релиз, через MForum.ru – Открытое акционерное общество "Вымпел-Коммуникации" ("Компания") (НФБ: VIP) сегодня объявило о том, что совет директоров Компании единогласно рекомендовал акционерам Компании принять добровольное предложение о приобретении всех эмиссионных ценных бумаг Компании (далее – "Добровольное предложение"), которое было получено Компанией сегодня.

Добровольное предложение является публичной офертой всем акционерам Компании о приобретении принадлежащих им обыкновенных именных бездокументарных акций и привилегированных именных бездокументарных акций "типа А" Компании ("Акции"). В соответствии с условиями Добровольного предложения владельцам Акций предоставляется возможность выбора формы оплаты Акций как денежными средствами, так и иными ценными бумагами. Оплата Акций денежными средствами в рамках Добровольного предложения предусмотрена по цене 0,01 рубля (0 (ноль) рублей 1 (одна) копейка) за 1 (одну) приобретаемую Акцию. В качестве альтернативы оплате Акций денежными средствами владелец Акций, являющийся "квалифицированным инвестором" (согласно определению этого термина, данному в статье 51.2 Федерального закона от 22.04.1996 №39-ФЗ "О рынке ценных бумаг" (с изменениями) (далее – "Закон о рынке ценных бумаг")), может принять решение о получении оплаты иными ценными бумагами – депозитарными расписками на обыкновенные акции или привилегированные акции VimpelCom Ltd. Совет директоров Компании рассмотрел Добровольное предложение и рекомендует владельцам Акций принять поступившее от VimpelCom Ltd. Добровольное предложение и выбрать в качестве формы оплаты депозитарные расписки на обыкновенные акции или привилегированные акции VimpelCom Ltd.

Одновременно VimpelCom Ltd. сделала предложение об обмене в США. Предложение в США могут принять все держатели акций Компании, являющиеся резидентами США (включая территории и владения США), и все владельцы американских депозитарных акций Компании («АДА»), где бы они ни находились.

«Запуск данных предложений – очень важный стратегический шаг на пути укрепления позиций группы компаний «ВымпелКом» как глобального игрока в телекоммуникационной отрасли, - отметил Главный Управляющий директор «Вымпелкома» Борис Немшич. – Мы продолжаем поддерживать данную сделку и уверены, что она приумножит ценности для акционеров «ВымпелКома». Мы приветствуем участие всех наших акционеров в новой компании».

Предложение в США истекает в 17:00 по нью-йоркскому времени 15 апреля 2010 г., а предложение в России – в 23:59 по московскому времени 20 апреля 2010 г., если не будут продлены.

Успешное завершение Добровольного предложения и предложения об обмене возможно в случае, если более 95% находящихся в обращении акций Компании (в том числе тех, на которые выпущены АДА) будут предложены к продаже в рамках Добровольного предложения и предложения об обмене в США, а также при выполнении прочих условий, описанных в Добровольном предложении и регистрационном заявлении VimpelCom Ltd. по форме F-4, поданном в КЦБ, в котором содержится предварительный проспект и материалы, связанные с принятием предложения в США. Копии регистрационного заявления VimpelCom Ltd. и соответствующих материалов по принятию предложения в США можно получить в компании Innisfree M&A Incorporated, которая является информационным агентом по предложению в США, обратившись по следующим телефонам: +1-877-800-5190 (для акционеров и держателей АДА) и +1-212-750-5833 (для банков и брокеров). Копии регистрационного заявления и приложений к нему могут быть бесплатно получены на сайте КЦБ по адресу: www.sec.gov.

В связи с предложением в России VimpelCom Ltd. представила предварительное уведомление о добровольном предложении в Федеральную службу по финансовым рынкам РФ. Компания направит Добровольное предложение в России, вместе с рекомендациями совета директоров и соответствующими материалами по принятию Добровольного предложения, держателям акций Компании, где бы они ни находились. Копии Добровольного предложения, рекомендаций совета директоров и соответствующих материалов по принятию Добровольного предложения можно получить в ЗАО "Национальная регистрационная компания", которая является информационным агентом по предложению в России, обратившись по телефону: +7(495) 440-6324/25/45 доб. 205, или в Компании, обратившись по телефону: +7(495) 974 5888.

Компания привлекла UBS Investment Bank в качестве своего финансового консультанта и "Эйкин Гамп Страусс Хауэр энд Фелд ЛЛП" в качестве своего юридического консультанта.