Edgar Filing: OPEN JOINT STOCK CO VIMPEL COMMUNICATIONS

Presentation of Q4 and Annual Financial and Operating Results 2006

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of April 2007

Commission File Number 1-14522

Open Joint Stock Company

“Vimpel-Communications”

(Translation of registrant’s name into English)

10 Ulitsa 8-Marta, Building 14, Moscow, Russian Federation 127083

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): .

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): .

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	OPEN JOINT STOCK COMPANY
	“VIMPEL-COMMUNICATIONS”
	(Registrant)
Date: April 12, 2007
	By:	/s/ Alexander V. Izosimov
	Name:	Alexander V. Izosimov
	Title:	Chief Executive Officer and General Director

LOGO

FOR IMMEDIATE RELEASE

VIMPELCOM ANNOUNCES FOURTH QUARTER AND AUDITED ANNUAL 2006

FINANCIAL AND OPERATING RESULTS

Moscow and New York (April 12, 2007) - Open Joint Stock Company “Vimpel-Communications” (“VimpelCom” or the “Company”) (NYSE: VIP), a leading provider of wireless telecommunications services in Russia and the Commonwealth of Independent States (CIS) today announced its financial and operating results for the quarter and year ended December 31, 2006.

Attachments A, B and C present definitions for certain terms used in this press release, the condensed consolidated financial statements of VimpelCom and tables with relevant reconciliations of non-U.S. GAAP financial measures to their most directly comparable U.S. GAAP financial measures. Selected financial and operating results are also reported for each of the countries where VimpelCom was operating as of December 31, 2006.

Financial and Operating Highlights

2006

•	Net operating revenues reached $4,868.0 million, an increase of 51.6% as compared with 2005.

•	OIBDA reached $2,451.8 million, OIBDA margin was 50.4%, an all-time record for the Company.

•	Net income totaled $811.5 million, an increase of 31.9% as compared with 2005.

•	Capital expenditures (excluding acquisitions) totaled $1,512.1 million.

•	Operating cash flow was $1,971.3 million, leading to the first ever positive free cash flow of $459.2 million.

•	Entry into the markets of Uzbekistan, Georgia and Armenia increased the population in the territories covered by the Company’s license portfolio to 240 million.

•	Subscriber base grew to approximately 55.1 million as of December 31, 2006, including 7.0 million in the CIS countries outside of Russia.

VimpelCom Announces Fourth Quarter And Annual 2006 Financial And Operating Results

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The fourth quarter of 2006

•	Net operating revenues reached $1,451.4 million in the fourth quarter, a year-on-year increase of 59.4% and a quarter-on-quarter increase of 6.8%.

•	OIBDA reached $689.8 million, a year-on-year increase of 64.4%.

•	OIBDA margin was 50.3% in Russia and 47.5% for the Company.

•	ARPU grew to $8.9 as compared with $7.1 and $8.7 recorded for fourth quarter of 2005 and the third quarter of 2006, respectively. It was the first time ever that VimpelCom reported ARPU growth in the fourth quarter.

•	Net income totaled $198.0 million, a year-on-year increase of 30.4%.

•	Operating cash flow was $540.4 million, a year-on-year increase of 46.3%.

•	Market share leadership (49.5%) achieved in Kazakhstan after two full years of operations.

Commenting on today’s announcement, Alexander Izosimov, Chief Executive Officer of VimpelCom, said, “2006 was another great year for VimpelCom. The Company continued to show strong revenue growth in excess of 50%, leading to almost $5 billion in turnover. We achieved a record OIBDA margin of 50.4%. Also, for the first time in its history, VimpelCom recorded positive free cash flow (before acquisitions) in the amount of $459.2 million.

“During 2006, we successfully dealt with challenges in Russia related to a more demanding competitive landscape and the introduction of a ‘calling party pays’ regime. We turned around the declining ARPU trend and secured ARPU growth during the last three quarters. It allowed us to maintain high growth rates in revenue and OIBDA in 2006 in spite of a greatly reduced influx of new subscribers. We expect our business in Russia to continue to expand primarily due to the increased usage of our services as living standards improve with the rapid growth of the Russian economy.

“In 2006, we added approximately 10 million new subscribers to reach the figure of 55 million. For the first time our new additions were almost equally split between Russia and the countries of the CIS, with the largest additions from Kazakhstan (1.8 million) where we became the market leader and from Ukraine (1.6 million). In the future, we expect our subscriber growth will come primarily from the countries outside of Russia.”

Key Consolidated Operating Indicators


	Three months										Year
	4Q2006		4Q2005		Change, 4Q06/ 4Q05		3Q2006		Change, 4Q06/ 3Q06		2006		2005		Change, Y-on-Y
Subscribers, end of period (EOP)	55,135,700		45,430,300		21.4	%	52,381,500		5.3	%	55,135,700		45,430,300		21.4	%
% of prepaid	96.5	%	96.9	%	—		96.8	%	—		96.5	%	96.9	%	—
Churn, quarterly	9.0	%	8.3	%	—		9.8	%	—		35.1	%	30.4	%	—
ARPU (US$)	8.9		7.1		25.4	%	8.7		2.3	%	8.0		7.5		6.7	%
MOU, (min)	126.5		106.5		18.8	%	121.7		3.9	%	117.9		101.4		16.3	%
SAC, (US$)	17.4		14.1		23.4	%	16.7		4.2	%	16.1		13.2		22.0	%

High level of churn is typical for predominantly prepaid markets like Russia and the CIS. It becomes more pronounced with the reduction of gross sales in Russia.

In addressing the churn issue, the Company is focused on protecting its revenue base by employing a segmented approach with the emphasis on higher ARPU consumer segments.

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VimpelCom Announces Fourth Quarter And Annual 2006 Financial And Operating Results

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Key Consolidated Financial Indicators


	Three months										Year
	4Q2006		4Q2005		Change, 4Q06/ 4Q05		3Q2006		Change, 4Q06/ 3Q06		2006		2005		Change, Y-on-Y
Net operating revenues (US$,000)	1,451,412		910,421		59.4	%	1,358,853		6.8	%	4,867,978		3,211,118		51.6	%
OIBDA (US$, 000)	689,825		419,692		64.4	%	717,796		-3.9	%	2,451,783		1,571,310		56.0	%
OIBDA margin	47.5	%	46.1	%	—		52.8	%	—		50.4	%	48.9	%	—
Gross margin (US$, 000)	1,179,453		757,443		55.7	%	1,109,219		6.3	%	3,977,246		2,668,700		49.0	%
Gross margin percentage	81.3	%	83.2	%	—		81.6	%	—		81.7	%	83.1	%	—
SG&A (US$, 000)	478,423		335,666		42.5	%	387,236		23.5	%	1,503,615		1,085,807		38.5	%
SG&A percentage	33.0	%	36.9	%	—		28.5	%	—		30.9	%	33.8	%	—
Net income (US$, 000)	197,950		151,748		30.4	%	268,370		-26.2	%	811,489		615,131		31.9	%
Net income per share (US$)	3.89		2.97		—		5.28		—		15.94		12.05		—
Net income per ADS (US$)	0.97		0.74		—		1.32		—		3.98		3.01		—

In 2006, VimpelCom’s capital expenditures totaled $1,512.1 million (excluding acquisitions) which is $123.2 million less than capital expenditures for 2005. In the fourth quarter of 2006 VimpelCom invested approximately $534.0 million for the purchase of long-lived assets and $449.0 million for the acquisition of ArmenTel in Armenia.

Consolidated figures represent the combined effect of the Company’s operations in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia.

RUSSIA


	Three months										Year
	4Q2006		4Q2005		Change, 4Q06/ 4Q05		3Q2006		Change, 4Q06/ 3Q06		2006		2005		Change, Y-on-Y
Net operating revenues^*) (million US$)	1,280.8		859.2		49.1	%	1,228.1		4.3	%	4,400.3		3,032.9		45.1	%
including interconnect revenue	167.8		19.1		778.5	%	133.5		25.7	%	411.9		39.9		932.3	%
OIBDA (million US$)	645.1		404.1		59.6	%	666.4		-3.2	%	2,303.5		1,508.0		52.8	%
OIBDA margin	50.3	%	47.0	%	—		54.2	%	—		52.3	%	49.7	%	—
Gross margin (million US$)	1061.1		724.7		46.4	%	1016.3		4.4	%	3652.2		2550.4		43.2	%
Gross margin percentage	82.8	%	84.3	%	—		82.7	%	—		83.0	%	84.1	%	—
SG&A (million US$)	406.6		318.5		27.7	%	346.2		17.4	%	1330.8		1032.0		29.0	%
SG&A percentage	31.7	%	37.1	%	—		28.2	%	—		30.2	%	34.0	%	—
Net income (million US$)	222.2		153.2		45.0	%	280.0		-20.6	%	854.8		619.8		37.9	%

^*)	Excluding inter-company transactions.

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VimpelCom Announces Fourth Quarter And Annual 2006 Financial And Operating Results

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ARPU (US$)	8.9		7.0		27.1	%	8.6		3.5	%	7.9		7.4		6.8	%
ARPUACT (active subscribers), (US$)	10.9		8.4		29.8	%	10.6		2.8	%	9.6		8.5		12.9	%
MOU (min.)	129.8		109.5		18.5	%	123.2		5.4	%	120.1		103.6		15.9	%
MOUACT (active subscribers) (min)	157.9		131.4		20.2	%	151.9		3.9	%	145.9		120.4		21.2	%
SAC (US$)	21.8		14.3		52.4	%	18.3		19.1	%	17.9		13.3		34.6	%
Subscribers, EOP	48,141,200		43,096,700		11.7	%	47,651,000		1.0	%	48,141,300		43,096,700		11.7	%
Active subscribers, EOP	39,782,700		35,936,400		10.7	%	38,790,400		2.6	%	39,782,700		35,936,400		10.7	%
Subscriber market share, EOP	31.7	%	34.3	%	—		32.4	%	—		31.7	%	34.3	%	—

In Russia, financial and operating results for the fourth quarter of 2006 confirmed the trends that emerged earlier in the year, namely, stabilizing prices and growth in MOU and ARPU. In fact, growth in MOU in the usually weak fourth quarter resulted in ARPU growth. This allowed the Company to increase its revenue in Russia on a quarter-to-quarter basis even with a substantially reduced subscriber growth rate.

Selling, general and administrative expenses (SG&A) as a percentage of net operating revenues decreased to 31.7% in the fourth quarter of 2006 from 37.1% recorded for the same quarter a year ago. An increase of SG&A in the fourth quarter of 2006 as compared with the third quarter of 2006 was connected to a number of seasonal and one-off factors, such as more intensive marketing activities during the New Year campaign and a 30% stock price appreciation during the fourth quarter of 2006 which led to additional accruals reflected in the fourth quarter in connection with the employee stock option plan.

Notwithstanding these factors, our OIBDA margin of 50.3% reported for the fourth quarter of 2006 was our best ever reported in Russia for the fourth quarter. For the full year 2006 we also reported the highest ever OIBDA margin of 52.3%.

Net income for the fourth quarter of 2006 grew by 45.0% as compared with the same quarter a year ago. The growth rate was less than that of OIBDA as we took a reserve based on the interim results of our litigation with the tax inspectorate. The litigation is connected with the tax audit for 2003-2004. While the litigation is continuing, we reserved $15.8 million for value added taxes as other losses and $26.7 million in income tax.

In 2006, VimpelCom’s capital expenditures in Russia totaled $1,049.5 million (excluding acquisitions) which is $449.3 million less than the same figure in 2005.

KAZAKHSTAN


	Three months										Year
	4Q2006		4Q2005		Change, 4Q06/ 4Q05		3Q2006		Change, 4Q06/ 3Q06		2006		2005		Change, Y-on-Y
Net operating revenues^*) (million US$)	112.4		49.2		128.5	%	103.5		8.6	%	350.0		176.1		98.8	%
including interconnect revenue	26.3		11.8		122.9	%	24.0		9.6	%	81.3		42.7		90.4	%
OIBDA (million US$)	35.7		17.0		110.0	%	49.0		-27.1	%	140.6		64.7		117.3	%
OIBDA margin	31.6	%	34.2	%	—		47.0	%	—		40.0	%	36.5	%	—
Gross margin (million US$)	77.3		31.7		143.8	%	71.9		7.5	%	240.0		117.2		104.8	%
Gross margin percentage	68.4	%	63.8	%	—		69.0	%	—		68.2	%	66.2	%	—
SG&A (million US$)	40.2		14.8		171.6	%	22.5		78.7	%	96.5		51.3		88.1	%
SG&A percentage	35.6	%	29.7	%	—		21.6	%	—		27.4	%	29.0	%	—
Net income (million US$)	-4.4		2.5		—		-0.6		—		9.9		-0.6		—

ARPU (US$)	10.8		9.1		18.7	%	11.3		-4.4	%	10.1		10.5		-3.8	%
ARPU_ACT (active subscribers), (US$)	13.8		10.3		34.0	%	14.4		-4.2	%	12.6		11.3		11.5	%
MOU (min.)	60.8		43.4		40.1	%	68.6		-11.4	%	56.8		51.3		10.7	%
MOU_ACT (active subscribers) (min)	78.0		49.2		58.5	%	87.5		-10.9	%	70.4		55.3		27.3	%
SAC (US$)	8.8		11.4		-22.8	%	8.5		3.5	%	8.2		12.1		-32.2	%
Subscribers, EOP	3,826,500		2,050,300		86.6	%	3,230,400		18.5	%	3,826,500		2,050,300		86.6	%
Active subscribers, EOP	3,052,900		1,813,900		68.3	%	2,596,300		17.6	%	3,052,900		1,813,900		68.3	%
Subscriber market share, EOP	49.5	%	37.2	%	—		46.9	%	—		49.5	%	37.2	%	—

^*)	Excluding inter-company transactions.

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VimpelCom Announces Fourth Quarter And Annual 2006 Financial And Operating Results

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2006 was an exceptionally good year for the Company’s operations in Kazakhstan where we actively pursued our strategy of rapid expansion. According to an independent source, we took the lead in subscriber numbers with an estimated market share of 49.5%.

We essentially doubled our net operating revenues and more than doubled OIBDA in 2006. The 2006 OIBDA margin of 40.0% was also higher than in the previous year. Profitability in the fourth quarter of 2006 was adversely affected by seasonal effects (particularly by the decline in MOU) and increased sales, general and administrative expenses mostly related to the year-end marketing and advertising activities and further network and IT systems development.

UKRAINE


	Three months										Year
	4Q2006		4Q2005		Change, 4Q06/ 4Q05		3Q2006		Change, 4Q06/ 3Q06		2006		2005		Change, Y-on-Y
Net operating revenues^*) (US$, million)	14.3		2.0		615.0	%	11.5		24.3	%	33.7		2.0		1585.0	%
including interconnect revenue	4.5		0.6		650.0	%	3.6		25.0	%	10.6		0.6		1666.7	%
OIBDA (million US$)	-10.5		-1.4		—		-6.1		—		-34.7		-1.4		—
Gross margin (million US$)	7.3		1.1		563.6	%	7.3		0.0	%	16.5		1.1		1400.0	%
Gross margin percentage	49.3	%	55.0	%	—		58.9	%	—		46.9	%	55.0	%	—
SG&A (million US$)	17.6		2.4		633.3	%	13.5		30.4	%	50.7		2.4		2012.5	%
SG&A percentage	118.9	%	120.0	%	—		108.9	%	—		144.0	%	120.0	%	—
Net income (million US$)	-21.5		-4.0		—		-13.0		—		-61.0		-4.0		—

ARPU (US$)	3.4		4.1		-17.1	%	5.5		-38.2	%	4.1		4.1		0.0	%
ARPU_ACT (active subscribers), (US$)	4.2		4.3		-2.3	%	6.7		-37.3	%	5.0		4.3		16.3	%
MOU (min.)	122.4		34.6		253.8	%	139.0		-11.9	%	121.8		34.6		252.0	%
MOU_ACT (active subscribers) (min)	149.1		36.2		311.9	%	168.4		-11.5	%	149.7		36.2		313.5	%
SAC (US$)	6.6		9.2		-28.3	%	12.3		-46.3	%	10.0		9.2		8.7	%
Subscribers, EOP	1,876,100		256,800		630.6	%	938,700		99.9	%	1,876,100		256,800		630.6	%
Active subscribers, EOP	1,523,700		249,200		511.4	%	766,100		98.9	%	1,523,700		249,200		511.4	%
Subscriber market share, EOP	3.8	%	0.9	%	—		2.4	%	—		3.8	%	0.9	%	—

^*)	Excluding inter-company transactions.

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VimpelCom Announces Fourth Quarter And Annual 2006 Financial And Operating Results

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In Ukraine, 2006 was the first year that we conducted our own operations, which started in mid-April with the launch of our Beeline brand. Although our business in Ukraine is still relatively small it has become a significant source of new subscribers. During the fourth quarter of 2006 we almost doubled our subscriber base and increased our net operating revenues by 24.3% compared with the third quarter of 2006. At the same time, seasonal effects and a disproportionate price-based response from the incumbents to new entrants resulted in a substantial deterioration of market conditions in Ukraine. Consequently, the Company recorded a decrease in MOU and ARPU and deterioration in its OIBDA and net income. The Company intends to meet the new challenges by focusing on building our subscriber base and growing market share.

We continue to litigate Telenor’s three claims challenging the URS acquisition. VimpelCom has prevailed in each court case to date. However, to date in two of the cases Telenor has requested that the Supreme Arbitration Court of Russia consider their appeals and a panel of three judges decided to transfer one of the cases to the Russian Supreme Arbitration Court. The panel cited its disagreement with certain conclusions reached by the lower courts. The panel’s view is not binding upon the Supreme Arbitration Court.

NEW OPERATIONS


	Three months						Year 2006
	4Q2006		3Q2006		Change, 4Q06/3Q06		Year 2006
Uzbekistan
Net operating revenues^*) (million US$)	15.8		15.7		0.6	%	55.4
OIBDA (million US$)	7.8		9.5		-17.9	%	32.1
OIBDA margin	49.1	%	60.5	%	—		57.7	%
Gross margin (million US$)	13.9		14.0		-0.7	%	48.8
Gross margin percentage	87.1	%	89.0	%	—		87.7	%
SG&A (million US$)	5.9		4.5		31.1	%	16.5
SG&A percentage	37.3	%	28.3	%	—		29.6	%
Net income (million US$)	0.4		3.2		-87.5	%	8.2

ARPU (US$)	8.8		11.1		-20.7	%	10.4
ARPU_ACT (active subscribers), (US$)	9.8		11.8		-16.9	%	11.9
MOU (min.)	240.1		285.0		-15.8	%	279.5
MOU_ACT(active subscribers) (min)	268.8		304.8		-11.8	%	320.5
SAC (US$)	5.8		8.6		-33.0	%	7.2
Subscribers, EOP	766,500		546,900		40.2	%	766,500
Active subscribers, EOP	700,500		484,200		44.7	%	700,500
Subscriber market share, EOP	28.2	%	26.2	%	—		28.2	%

^*)	Excluding inter-company transactions.

Business development in Uzbekistan is still at the initial phase with a penetration rate of approximately 10%. The fourth quarter of 2006 was the first full quarter of our operations after the launch of the Beeline brand in September 2006. Our focus in Uzbekistan is on subscriber growth where the Company achieved good results in the fourth quarter increasing our subscriber base by more than 40%. We continue working on upgrading our networks and services, strengthening the organization, transferring our knowledge and experience, as well as adapting our marketing strategy to the market specifics in Uzbekistan.

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VimpelCom Announces Fourth Quarter And Annual 2006 Financial And Operating Results

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	Three months						Year 2006
	4Q2006		3Q2006		Change, 4Q06/3Q06		Year 2006
Tajikistan
Net operating revenues*) (million US$)	0.80		0.08		900.0	%	1.18
including interconnect revenue	0.07		0.00		—		0.07
OIBDA (million US$)	-1.11		-0.98		—		-2.45
Gross margin (million US$)	0.37		-0.03		—		0.52
Gross margin percentage	45.1	%	-37.5	%	—		43.3	%
SG&A (million US$)	1.48		0.95		55.8	%	2.97
SG&A percentage	180.5	%	1187.5	%	—		247.5	%
Net income (million US$)	-1.11		-0.78		—		-2.40

ARPU (US$)	7.8		1.9		310.5	%	4.4
ARPU_ACT (active subscribers), (US$)	9.0		3.1		190.3	%	6.8
MOU (min.)	160.8		40.6		296.1	%	77.4
MOU_ACT(active subscribers) (min)	187.9		69.8		169.2	%	121.1
SAC (US$)	2.5		18.2		-86.3	%	3.3
Subscribers, EOP	73,400		14,500		406.2	%	73,400
Active subscribers, EOP	72,000		6,900		943.5	%	72,000
Subscriber market share, EOP	8.9	%	4.0	%	—		8.9	%

^*)	Excluding inter-company transactions.

As in Uzbekistan, business development in Tajikistan is also at the initial phase with a penetration rate of approximately 12%. The fourth quarter of 2006 was the first full quarter of our operations after the launch of the Beeline brand in September 2006. The Company experienced explosive growth in the fourth quarter increasing its subscriber base by triple-digit numbers and more than doubling its market share. MOU and ARPU also grew by triple-digit numbers. We continue working on developing further our initial success and strengthening our position in Tajikistan.


	4Q 2006
Armenia
Net operating revenues (million US$)	27.37
including mobile revenues	10.45
including fixed revenues	16.92
OIBDA (million US$)	13.29
OIBDA margin	48.6	%
Net income (million US$)	2.93
Mobile subscribers	452,000
ARPU mobile (US$)	15.7
Fixed subscribers	608,500
ARPU fixed (US$)	18.5
Mobile subscriber market share, EOP	38.2	%

Total assets (million US$)	622.6

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VimpelCom Announces Fourth Quarter And Annual 2006 Financial And Operating Results

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VimpelCom completed its acquisition of 90% of Armentel on November 16, 2006 and began to consolidate Armentel’s results in its financial reporting from that date. At the time of the acquisition, Armentel included a fixed-line business and the second largest mobile operator in Armenia. Going forward, we will work to enhance Armentel’s position in the mobile market and we will continue to operate the fixed-line network, exploring fixed-to-mobile convergence opportunities.

The Company’s management will discuss its fourth quarter and annual 2006 results during a conference call and slide presentation on April 12, 2007 at 6:30 pm Moscow time (10:30 am ET in New York). The call and slide presentation may be accessed via webcast at the following URL address http://www.vimpelcom.com. The conference call replay and the slide presentation webcast will be available through April 19, 2007 and May 11, 2007, respectively. The slide presentation will also be available for download on VimpelCom’s website http://www.vimpelcom.com.

The VimpelCom Group includes cellular companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan and Tajikistan, and recently acquired companies in Georgia and Armenia. The VimpelCom Group’s cellular license portfolio covers a territory with a population of about 240 million. This includes 77 regions of Russia (136.5 million people, representing 94% of the Russia’s population), and the entire territories of Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia, and Armenia. 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”.

Although the fourth quarter and annual 2006 U.S. GAAP financial statements were approved by the requisite majority of our board, the three directors on our board who were nominated by our shareholder Telenor East Invest AS and who are officers of Telenor or its affiliates voted against approval.

This press release contains “forward-looking statements”, as the phrase is defined in Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements relate to the Company’s strategic and development plans, including network development plans, and developments in the telecommunications markets in which the Company operates. These and other forward-looking statements are based on management’s best assessment of the Company’s strategic and financial position and of future market conditions and trends. These discussions involve risks and uncertainties. The actual outcome may differ materially from these statements as a result of unforeseen developments from competition, governmental regulation of the telecommunications industries in Russia and the CIS, general political uncertainties in Russia and the CIS and general economic developments in Russia and the CIS, the Company’s ability to continue to grow its overall revenues and its subscriber base, continued volatility in the world economy and other factors. As a result of such risks and uncertainties, there can be no assurance that the effects of competition or current or future changes in the political, economic and social environment or current or future regulation of the Russian and CIS telecommunications industries will not have a material adverse effect on the VimpelCom Group. There can be no assurance that the Company will prevail in its litigation with Telenor challenging the URS acquisition or that an adverse decision by the Supreme Arbitration Court or any other court in the Company’s litigation with Telenor regarding the URS acquisition will not adversely impact the outcome to VimpelCom in the other pending lawsuits brought by Telenor against the Company challenging the URS acquisition. In addition, there can be no assurances that additional claims will not be made by Telenor or other third parties regarding the Company’s acquisition of URS or other matters. In the event a decision unfavorable to the Company becomes binding in any pending or future court cases, including a decision for monetary damages and/or to unwind the URS acquisition, it could have an adverse effect on the Company, its business, its expansion strategy and its financial results. Certain factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risks described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2005 and other public filings made by the Company with the United States Securities and Exchange Commission, which risk factors are incorporated herein by reference. VimpelCom disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.


For more information, please contact:

Marine Babayan		Peter Schmidt/Michael Polyviou
VimpelCom (Moscow)		Financial Dynamics
Tel: 7(495) 974-5888		Tel: 1(212) 850 5600
Investor_Relations@vimpelcom.com		mpolyviou@fd-us.com

- more -

-Definitions and tables are attached –

Attachment A: Definitions

Subscriber is an authorized user of cellular services, using one SIM card (GSM) with one or several selective numbers or one handset (DAMPS) with one selective number. The number of subscribers includes employees using cellular services and excludes guest roamers and users of test SIM cards (GSM) or handsets (DAMPS).

Churn rate is defined as the total number of registered subscribers disconnected from our network within a given period of time expressed as a percentage of the midpoint of subscribers in our network at the beginning and end of that period. Contract subscribers are disconnected if they have not paid their bills for 2 months and prepaid subscribers are disconnected 6 months after their services have been blocked. We typically block a prepaid subscriber’s service in two cases: (1) their balance drops to $0 or below, and (2) an account shows no chargeable activity within 6 months. The Company retains the right to change its disconnect policy to reflect changes in business or regulatory environment.

Active subscribers are those who in the past three months made a transaction which brought revenue to the Company.

Prepaid subscribers are those subscribers who pay for their services in advance.

OIBDA is a non-U.S. GAAP financial measure. OIBDA, previously referred to as EBITDA by the Company, is defined as operating income before depreciation and amortization. The Company believes that OIBDA provides useful information to investors because it is an indicator of the strength and performance of our business operations, including our ability to finance capital expenditures, acquisitions and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under U.S. GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Our OIBDA calculations are commonly used as bases for some investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the wireless telecommunications industry. OIBDA should not be considered in isolation as an alternative to net income, operating income or any other measure of performance under U.S. GAAP. OIBDA does not include our need to replace our capital equipment over time. Reconciliation of OIBDA to operating income, the most directly comparable U.S. GAAP financial measure, is presented below in the tables section.

OIBDA margin is OIBDA expressed as a percentage of total net operating revenues. Reconciliation of OIBDA margin to operating income as a percentage of total net operating revenues, the most directly comparable U.S. GAAP financial measure, is presented below in the tables section.

Gross margin is defined as total operating revenues less service costs and cost of handsets and accessories sold.

Gross margin percentage is gross margin expressed as a percentage of total operating revenues.

Each ADS represents 0.25 of one share of common stock. This ratio was established effective November 22, 2004. Previously each ADS represented 0.75 of one share of common stock.

ARPU (Monthly Average Revenue per User), a non-U.S. GAAP financial measure, is calculated for each month in the relevant period by dividing the Company’s service revenue during that month, including roaming revenue and interconnect revenue, but excluding revenue from connection fees, sales of handsets and accessories and other non-service revenue, by the average number of the Company’s subscribers during the month. Reconciliation of ARPU to service revenues and connection fees, the most directly comparable U.S. GAAP financial measure, is presented below in the tables section. The Company believes that ARPU provides useful information to investors because it is an indicator of the performance of the Company’s business operations and assists management in budgeting. The Company also believes that ARPU provides management with useful information concerning usage and acceptance of the Company’s services. ARPU should not be viewed in isolation or an alternative to other figures reported under U.S. GAAP.

ARPU_ACT is ARPU calculated with regard to active subscribers.

MOU (Monthly Average Minutes of Use per User) is calculated for each month of the relevant period by dividing the total number of minutes of usage for incoming and outgoing calls during that month (excluding guest roamers) by the average number of subscribers during the month.

MOU_ACT is MOU calculated with regard to active subscribers.

SAC (Average Acquisition Cost Per User), a non-U.S. GAAP financial measure, is calculated as dealers’ commissions (for sales and bonus for exclusivity^*), advertising expenses and handset subsidies for the relevant period divided by the number of new subscribers added during the relevant period. Reconciliation of SAC to selling, general and administrative expenses, the most directly comparable U.S. GAAP financial measure, is presented below in the tables section. The Company believes that SAC in growing markets provides useful information to investors because it is an indicator of the performance of the Company’s business operations and assists management in budgeting. The Company also believes that SAC assists management in quantifying the incremental costs to acquire a new subscriber. SAC should not be viewed in isolation or as an alternative to other figures reported under U.S. GAAP.

Market share of subscribers for each relevant area is calculated by dividing the estimated number of our subscribers in Russia, Kazakhstan, Ukraine, Uzbekistan and Tajikistan, respectively, by the total estimated number of subscribers in Russia, Kazakhstan, Ukraine, Uzbekistan and Tajikistan, respectively. Subscriber statistics for these countries are taken from reports published by consulting agencies specializing in the telecommunications industry in Russia and the CIS, reports of other mobile operators, or are estimated by the Company.

^*)

Dealers’ bonus for exclusivity which we previously counted as a part of general and administrative expenses is now included in the dealers’ commission expense. Historical numbers including SAC were recalculated accordingly.

Attachment B: VimpelCom financial statements

Open Joint Stock Company “Vimpel-Communications”

Condensed Consolidated Statements of Operations


	Three months ended December 31,						Years ended December 31,
	2006			2005			2006			2005
	*Unaudited*
	*(In thousands of US dollars, except per share (ADS) amounts)*
Operating revenues:
Service revenues and connection fees	US$	1,447,054		US$	900,916		US$	4,847,661		US$	3,175,221
Sales of handsets and accessories		4,252			7,507			19,265			30,478
Other revenues		657			1,998			2,931			5,419
Total operating revenues		1,451,963			910,421			4,869,857			3,211,118

Revenue based taxes		(551	)		—			(1,879	)		—
Net operating revenues		1,451,412			910,421			4,867,978			3,211,118

Operating expenses:
Service costs		267,736			145,764			872,388			514,124
Cost of handsets and accessories		4,223			7,214			18,344			28,294
Selling, general and administrative expenses		478,423			335,666			1,503,615			1,085,807
Depreciation and amortization		315,181			182,465			1,054,464			593,278
Provision for doubtful accounts		11,205			2,085			21,848			11,583
Total operating expenses		1,076,768			673,194			3,470,659			2,233,086
Operating income		374,644			237,227			1,397,319			978,032

Other income and expenses:
Interest income		4,436			4,152			15,471			8,658
Other income		5,250			6,248			9,768			18,647
Interest expense		(46,602	)		(40,035	)		(186,404	)		(147,448	)
Other expense		(27,817	)		(6,125	)		(48,612	)		(24,500	)
Net foreign exchange gain		10,667			7,211			24,596			7,041
Total other income and expenses		(54,066	)		(28,549	)		(185,181	)		(137,602	)

Income before income taxes, minority interest and cumulative effect of change in accounting principle		320,578			208,678			1,212,138			840,430

Provision for income taxes		127,831			54,324			390,663			221,901
Minority interest in net earnings (losses) of subsidiaries		(5,203	)		2,606			8,104			3,398

Income before cumulative effect of change in accounting principle	US$	197,950		US$	151,748		US$	813,371		US$	615,131

Cumulative effect of changes in accounting principles		—			—			(1,882	)		—

Net income	US$	197,950		US$	151,748		US$	811,489		US$	615,131

Net income per common share	US$	3.89		US$	2.97		US$	15.94		US$	12.05

Net income per ADS equivalent	US$	0.97		US$	0.74		US$	3.98		US$	3.01

Weighted average common shares outstanding (thousands)		50,859			51,023			50,911			51,066

Open Joint Stock Company “Vimpel-Communications”

Condensed Consolidated Balance Sheets


	December 31, 2006		December 31, 2005
	*(In thousands of US dollars)*
Assets
Current assets:
Cash and cash equivalents	US$	344,494	US$	363,646
Accounts receivable		311,991		144,197
Other current assets		468,071		453,582

Total current assets		1,124,556		961,425

Non-current assets
Property and equipment, net		4,615,675		3,211,112
Telecommunication licenses and allocation of frequencies, net		924,809		826,948
Goodwill		775,223		477,495
Other intangible assets, net		257,917		196,356
Other assets		738,366		633,700

Total non-current assets		7,311,990		5,345,611

Total assets	US$	8,436,546	US$	6,307,036

Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	US$	671,532	US$	544,961
Due to related parties		421		709
Customer advances and deposits		314,375		309,647
Bank loans, current portion		358,211		278,537
Rouble denominated bonds		—		104,230
Accrued liabilities		267,437		181,268

Total current liabilities		1,611,976		1,419,352

Deferred income taxes		528,025		371,008
Bank loans, less current portion		1,980,726		1,540,043
Accrued liabilities, less current portion		115,050		47,458

Minority interest		257,859		188,626

Shareholders’ equity		3,942,910		2,740,549

Total liabilities and shareholders’ equity	US$	8,436,546	US$	6,307,036

Open Joint Stock Company “Vimpel-Communications”

Condensed Consolidated Statements of Cash Flow


	Years ended December 31,
	2006			2005
	*(In thousands of US dollars)*
Net cash provided by operating activities	US$	1,971,268		US$	1,292,918

Purchase of property and equipment		(1,265,549	)		(1,178,470	)
Purchase of intangible assets		(31,408	)		(16,453	)
Proceeds from sale of property and equipment		—			52,578
Acquisition of subsidiaries, net of cash		(679,765	)		(308,065	)
Sale of shares in subsidiaries		—			179,968
Purchase of other assets		(310,269	)		(320,423	)

Net cash used in investing activities		(2,286,991	)		(1,590,865	)

Proceeds from bank and other loans		925,183			864,418
Proceeds from sale of treasury stock		12,855			5,291
Repayments of bank and other loans		(374,789	)		(374,682	)
Repayment of rouble denominated bonds		(110,783	)		—
Payments of fees in respect of debt issue		(48,175	)		(19,669	)
Repayment of equipment financing obligations		(72,874	)		(92,077	)
Purchase of treasury stocks		(38,535	)		(18,374	)

Net cash provided by financing activities		292,882			364,907

Effect of exchange rate changes on cash and cash equivalents		3,689			(9,171	)

Net increase (decrease) in cash and cash equivalents		(19,152	)		57,789

Cash and cash equivalents at beginning of year		363,646			305,857

Cash and cash equivalents at end of year	US$	344,494		US$	363,646

Supplemental cash flow information
Cash paid during the period:
Income tax	US$	354,566		US$	198,610
Interest		188,991			140,809
Non-cash activities:
Equipment acquired under financing agreements		23,458			12,628
Accounts payable for equipment and license		249,020			367,380
Accrued debt and equity offering costs		—			5,195
Offset of 2009 Tendered Notes		232,766			—
Deferred part of Ericsson non-cash discount in Ukraine		14,542			—
Acquisitions:
Fair value of assets acquired		671,997			273,147
Difference between the amount paid and the fair value of net assets acquired		268,315			112,281
Cash paid for the acquisition of subsidiaries		(735,500	)		(310,006	)

Liabilities assumed	US$	204,812		US$	75,442

Attachment C. Reconciliation tables

(Unaudited)

Reconciliation of OIBDA

(In thousands of US dollars)


	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sept 30, 2006		Dec 31, 2006		Dec 31, 2005
OIBDA	689,825		419,692		717,796		2,451,783		1,571,310

Depreciation	(265,086	)	(143,425	)	(243,593	)	(874,618	)	(451,152	)
Amortization	(50,095	)	(39,040	)	(45,648	)	(179,846	)	(142,126	)

Operating income	374,644		237,227		428,555		1,397,319		978,032


Reconciliation of OIBDA Margin

	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sept 30, 2006		Dec 31, 2006		Dec 31, 2005
OIBDA margin	47.5	%	46.1	%	52.8	%	50.4	%	48.9	%

Less: Depreciation as a percentage of net operating revenue	(18.3	)%	(15.7	)%	(17.9	)%	(18.0	)%	(14.0	)%
Less: Amortization as a percentage of net operating revenue	(3.4	)%	(4.3	)%	(3.4	)%	(3.7	)%	(4.4	)%

Operating income as a percentage of net operating revenue	25.8	%	26.1	%	31.5	%	28.7	%	30.5	%


Reconciliation of SAC *(In thousands of US dollars, except for SAC and subscriber amounts)*

	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sept 30, 2006		Dec 31, 2006		Dec 31, 2005
Selling, general and administrative expenses	478,423		335,666		387,236		1,503,615		1,085,807

Less: General and administrative expenses	354,498		213,558		276,489		1,077,660		698,707
Sales and marketing expenses, including	123,925		122,108		110,747		425,955		387,100
advertising & marketing expenses	70,614		48,042		54,239		219,833		135,248
dealers’ commission expense	53,311		74,066		56,508		206,122		251,852
New gross subscribers,’000	7,125		8,659		6,614		26,465		29,246

Subscriber Acquisition Cost (SAC) (US$)	17.4		14.1		16.7		16.1		13.2

Reconciliation of ARPU

(In thousands of US dollars, except for ARPU and subscriber amounts)


	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sept 30, 2006		Dec 31, 2006		Dec 31, 2005
Service revenue and connection fees	1,430,132		900,916		1,354,305		4,830,739		3,175,221

Less: Connection fees	313		259		413		1,752		876
Less: Revenue from rent of fiber-optic channels	433		309		760		1,846		1,370
Service revenue used to calculate ARPU	1,429,386		900,348		1,353,132		4,827,141		3,172,975
Average number of subscribers,’000	53,492		42,426		51,626		50,326		35,393

Average revenue per subscriber per month (US$)	8.9		7.1		8.7		8.0		7.5


RUSSIA Reconciliation of OIBDA in Russia *(In thousands of US dollars)*

	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sep 30, 2006		Dec 31, 2006		Dec 31, 2005
OIBDA	645,144		404,113		666,354		2,303,539		1,508,045

Depreciation	(229,544	)	(135,740	)	(221,973	)	(796,137	)	(430,511	)
Amortization	(27,091	)	(27,998	)	(26,429	)	(104,155	)	(104,861	)

Operating income	388,509		240,375		417,952		1,403,247		972,673


Reconciliation of OIBDA Margin in Russia

	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sep 30, 2006		Dec 31, 2006		Dec 31, 2005
OIBDA margin	50.3	%	47.0	%	54.2	%	52.3	%	49.7	%

Less: Depreciation as a percentage of net operating revenue	(17.9	)%	(15.7	)%	(18.0	)%	(18.0	)%	(14.1	)%
Less: Amortization as a percentage of net operating revenue	(2.1	)%	(3.3	)%	(2.2	)%	(2.4	)%	(3.5	)%

Operating income as a percentage of net operating revenue	30.3	%	28.0	%	34.0	%	31.9	%	32.1	%

Reconciliation of SAC in Russia

(In thousands of US dollars, except for SAC and subscriber amounts)


	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sep 30, 2006		Dec 31, 2006		Dec 31, 2005
Selling, general and administrative expenses	406,642		318,457		346,157		1,330,806		1,032,040

Less: General and administrative expenses	298,222		203,038		247,190		949,326		664,799
Sales and marketing expenses, including	108,420		115,419		98,967		381,480		367,241
advertising & marketing expenses	59,892		45,291		46,487		190,791		127,292
dealers’ commission expense	48,528		70,128		52,480		190,689		239,949
New gross subscribers,’000	4,971		8,064		5,404		21,303		27,591

Subscriber Acquisition Cost (SAC) (US$)	21.8		14.3		18.3		17.9		13.3


Reconciliation of ARPU in Russia *(In thousands of US dollars, except for ARPU and subscriber amounts)*

	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sep 30, 2006		Dec 31, 2006		Dec 31, 2005
Service revenue and connection fees	1,276,276		849,775		1,223,681		4,379,534		2,997,388

Less: Connection fees	308		259		410		1,744		876
Less: Revenue from rent of fiber-optic channels	433		309		760		1,846		1,370
Service revenue used to calculate ARPU	1,275,535		849,207		1,222,511		4,375,944		2,995,142
Average number of subscribers,’000	47,541		40,484		47,306		46,142		33,958

Average revenue per subscriber per month (US$)	8.9		7.0		8.6		7.9		7.4

Average number of active subscribers,’000	39,102		33,754		38,365		37,996		29,207

Average revenue per active subscriber per month (US$)	10.9		8.4		10.6		9.6		8.5


KAZAKHSTAN Reconciliation of OIBDA in Kazakhstan *(In thousands of US dollars)*

	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sep 30, 2006		Dec 31, 2006		Dec 31, 2005
OIBDA	35,744		16,979		49,023		140,580		64,665

Depreciation	(21,142	)	(7,655	)	(17,981	)	(56,158	)	(20,611	)
Amortization	(9,134	)	(8,245	)	(9,550	)	(36,792	)	(34,468	)

Operating income	5,468		1,079		21,492		47,630		9,586

Reconciliation of OIBDA Margin in Kazakhstan

(In thousands of US dollars)


	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sep 30, 2006		Dec 31, 2006		Dec 31, 2005
OIBDA margin	31.6	%	34.2	%	47.0	%	40.0	%	36.5	%

Less: Depreciation as a percentage of net operating revenue	(18.7	)%	(15.4	)%	(17.2	)%	(16.0	)%	(11.6	)%
Less: Amortization as a percentage of net operating revenue	(8.1	)%	(16.6	)%	(9.2	)%	(10.5	)%	(19.5	)%

Operating income as a percentage of net operating revenue	4.8	%	2.2	%	20.6	%	13.5	%	5.4	%


Reconciliation of SAC in Kazakhstan *(In thousands of US dollars, except for SAC and subscriber amounts)*

	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sep 30, 2006		Dec 31, 2006		Dec 31, 2005
Selling, general and administrative expenses	40,200		14,764		22,508		96,451		51,322

Less: General and administrative expenses	33,080		8,435		16,521		74,054		31,822
Sales and marketing expenses, including	7,120		6,329		5,987		22,397		19,500
advertising & marketing expenses	4,419		2,420		3,329		11,791		7,626
dealers’ commission expense	2,701		3,909		2,658		10,606		11,874
New gross subscribers,’000	809		556		704		2,724		1,616

Subscriber Acquisition Cost (SAC) (US$)	8.8		11.4		8.5		8.2		12.1


Reconciliation of ARPU in Kazakhstan *In thousands of US dollars, except for ARPU and subscriber amounts)*

	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sep 30, 2006		Dec 31, 2006		Dec 31, 2005
Service revenue and connection fees	112,963		49,668		104,208		351,854		176,924

Less: Connection fees	0		0		0		0		0
Less: Revenue from rent of fiber-optic channels	0		0		0		0		0
Service revenue used to calculate ARPU	112,963		49,668		104,208		351,854		176,924
Average number of subscribers,’000	3,498		1,818		3,077		2,893		1,404

Average revenue per subscriber per month (US$)	10.8		9.1		11.3		10.1		10.5

Average number of active subscribers,’000	2,728		1,604		2,412		2,332		1,303

Average revenue per active subscriber per month (US$)	13.8		10.3		14.4		12.6		11.3

UKRAINE

Reconciliation of OIBDA in Ukraine

(In thousands of US dollars)


	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sep 30, 2006		Dec 31, 2006		Dec 31, 2005
OIBDA	(10,546	)	(1,400	)	(6,072	)	(34,690	)	(1,400	)

Depreciation	(4,325	)	(30	)	(1,218	)	(6,478	)	(30	)
Amortization	(5,722	)	(2,797	)	(5,232	)	(20,555	)	(2,797	)

Operating income	(20,593	)	(4,227	)	(12,522	)	(61,723	)	(4,227	)


Reconciliation of SAC in Ukraine *(In thousands of US dollars, except for SAC and subscriber amounts)*

	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sep 30, 2006		Dec 31, 2006		Dec 31, 2005
Selling, general and administrative expenses	17,624		2,445		13,466		50,703		2,445

Less: General and administrative expenses	11,346		2,086		8,841		33,235		2,086
Sales and marketing expenses, including	6,278		359		4,625		17,468		359
advertising & marketing expenses	5,144		330		3,861		14,949		330
dealers’ commission expense	1,134		29		764		2,519		29
New gross subscribers,’000	948		39		375		1,752		39

Subscriber Acquisition Cost (SAC) (US$)	6.6		9.2		12.3		10.0		9.2


Reconciliation of ARPU in Ukraine *(In thousands of US dollars, except for ARPU and subscriber amounts)*

	Three months ended						Year Ended
	Dec 31, 2006		Dec 31, 2005		Sep 30, 2006		Dec 31, 2006		Dec 31, 2005
Service revenue and connection fees	14,652		1,952		12,320		35,024		1,952

Less: Connection fees	5		0		3		8		0
Less: Revenue from rent of fiber-optic channels	0		0		0		0		0
Service revenue used to calculate ARPU	14,647		1,952		12,317		35,016		1,952
Average number of subscribers,’000	1,425		239		741		714		239

Average revenue per subscriber per month (US$)	3.4		4.1		5.5		4.1		4.1

Average number of active subscribers,’000	1,170		228		611		582		228

Average revenue per active subscriber per month (US$)	4.2		4.3		6.7		5.0		4.3

UZBEKISTAN

Reconciliation of OIBDA in Uzbekistan

(In thousands of US dollars)

Three months ended

Year Ended

Dec 31,
2006

Dec 31,
2005

Sep 30,
2006

Dec 31,
2006

Dec 31,
2005

OIBDA

7,815

9,532

32,079

Depreciation

(2,720

)

(2,380

)

(8,376

)

Amortization

(3,378

)

(3,268

)

(11,843

)

Operating income

1,717

3,884

11,860

Reconciliation of OIBDA Margin in Uzbekistan

Three months ended

Year Ended

Dec 31,
2006

Dec 31,
2005

Sep 30,
2006

Dec 31,
2006

Dec 31,
2005

OIBDA margin

49.1

60.5

57.7

Less: Depreciation as a percentage of net operating revenue

(17.1

(15.1

Less: Amortization as a percentage of net operating revenue

(21.2

(20.7

(21.3

Operating income as a percentage of net operating revenue

10.8

24.7

21.3

Reconciliation of SAC in Uzbekistan

(In thousands of US dollars, except for SAC and subscriber amounts)

Three months ended

Year Ended

Dec 31,
2006

Dec 31,
2005

Sep 30,
2006

Dec 31,
2006

Dec 31,
2005

Selling, general and administrative expenses

5,933

4,462

16,451

Less: General and administrative expenses

4,287

3,355

12,369

Sales and marketing expenses, including

1,646

1,107

4,081

advertising & marketing expenses

767

500

1,843

dealers’ commission expense

879

607

2,238

New gross subscribers,’000

284

128

569

Subscriber Acquisition Cost (SAC) (US$)

5.8

8.6

7.2

Reconciliation of ARPU in Uzbekistan

(In thousands of US dollars, except for ARPU and subscriber amounts)

Three months ended

Year Ended

Dec 31,
2006

Dec 31,
2005

Sep 30,
2006

Dec 31,
2006

Dec 31,
2005

Service revenue and connection fees

16,446

16,279

57,439

Less: Connection fees

Less: Revenue from rent of fiber-optic channels

Service revenue used to calculate ARPU

16,446

16,279

57,439

Average number of subscribers,’000

625

490

461

Average revenue per subscriber per month (US$)

8.8

11.1

10.4

Average number of active subscribers,’000

558

458

402

Average revenue per active subscriber per month (US$)

9.8

11.8

11.9

TAJIKISTAN

Reconciliation of OIBDA in Tajikistan

(In thousands of US dollars)

Three months ended

Year Ended

Dec 31,
2006

Dec 31,
2005

Sept 30,
2006

Dec 31,
2006

Dec 31,
2005

OIBDA

(1,112

)

(980

)

(2,447

)

Depreciation

(204

)

(41

)

(318

)

Amortization

(69

)

(50

)

(680

)

Operating income

(1,385

)

(1,071

)

(3,445

)

Reconciliation of SAC in Tajikistan

(In thousands of US dollars, except for SAC and subscriber amounts)

Three months ended

Year Ended

Dec 31,
2006

Dec 31,
2005

Sept 30,
2006

Dec 31,
2006

Dec 31,
2005

Selling, general and administrative expenses

1,485

947

2,968

Less: General and administrative expenses

1,325

885

2,741

Sales and marketing expenses, including

160

227

advertising & marketing expenses

158

dealers’ commission expense

New gross subscribers,’000

3.4

Subscriber Acquisition Cost (SAC) (US$)

2.5

18.2

3.3

Reconciliation of ARPU in Tajikistan

(In thousands of US dollars, except for ARPU and subscriber amounts)

Three months ended

Year Ended

Dec 31,

2006

Dec 31,

2005

Sept 30,

2006

Dec 31,

2006

Dec 31,

2005

Service revenue and connection fees

840

1,218

Less: Connection fees

Less: Revenue from rent of fiber-optic channels

Service revenue used to calculate ARPU

840

1,218

Average number of subscribers,’000

Average revenue per subscriber per month (US$)

7.8

1.9

4.4

Average number of active subscribers,’000

Average revenue per active subscriber per month (US$)

9.0

3.1

6.8

ARMENIA

Reconciliation of OIBDA in Armenia

(In thousands of US dollars)

Three months ended

Year Ended

Dec 31,
2006

Dec 31,
2005

Sept 30,
2006

Dec 31,
2006

Dec 31,
2005

OIBDA

13,290

Depreciation

(7,148

)

(7,148

)

Amortization

(3,928

)

(3,928

)

Operating income

2,214

Reconciliation of OIBDA Margin in Armenia

Three months ended

Year Ended

Dec 31,
2006

Dec 31,
2005

Sept 30,
2006

Dec 31,
2006

Dec 31,
2005

OIBDA margin

48.6

Less: Depreciation as a percentage of net operating revenue

(26.1

Less: Amortization as a percentage of net operating revenue

(14.4

Operating income as a percentage of net operating revenue

8.1

Reconciliation of mobile ARPU in Armenia

(In thousands of US dollars, except for ARPU and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2006	Dec 31, 2005	Sept 30, 2006	Dec 31, 2006	Dec 31, 2005
Service revenue and connection fees	10,451	na	na	10,451	na

Less: Connection fees	0	na	na	0	na
Less: Revenue from rent of fiber-optic channels	0	na	na	0	na
Service revenue used to calculate ARPU	10,451	na	na	10,451	na
Average number of subscribers,’000	445	na	na	445	na

Average revenue per subscriber per month (US$)	15.7	na	na	15.7	na

Average number of active subscribers,’000	447	na	na	447	na

Average revenue per active subscriber per month (US$)	15.6	na	na	15.7	na


Reconciliation of fixed ARPU in Armenia *(In thousands of US dollars, except for ARPU and subscriber amounts)*

	Three months ended			Year Ended
	Dec 31, 2006	Dec 31, 2005	Sept 30, 2006	Dec 31, 2006	Dec 31, 2005
Service revenue and connection fees	16,922	na	na	16,922	na

Less: Connection fees	0	na	na	0	na
Service revenue used to calculate ARPU	16,922	na	na	16,922	na
Average number of subscribers,’000	609	na	na	609	na

Average revenue per subscriber per month (US$)	18.5	na	na	18.5	na

VimpelCom

Presentation of 4Q and Annual

2006

Financial

and

Operating Results

April 12, 2007

Disclaimer

This presentation contains "forward-looking statements", as the phrase is defined in Section 27A of the

Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate, in

part, to the Company’s strategy and development plans, such as growth in terms of subscribers, ARPU and

revenues

well

acquisitions

and

expansion

into

new

business

areas. The forward-looking statements are

based

management's

best

assessment

the

Company's

strategic

and financial position, and future market

conditions and trends. These discussions involve risks and uncertainties. The actual outcome may differ

materially from these statements as a result of risks and uncertainties relating to developments from

competition, governmental regulations of the wireless telecommunications industry, general political

uncertainties in Russia and the CIS, general economic developments in Russia and the CIS, and/or litigation

with third parties or our shareholders (including Telenor). The actual outcome may also differ materially if

the Company is unable to obtain all necessary corporate approvals relating to its business (including approval

funding,

specific

transactions

and

payment

dividends),

and

other factors. There can be no assurance that

these risks and uncertainties will not have a material adverse effect on the Company, that the Company will

be able to grow or that it will be successful in executing its strategy and development plans. Certain factors

that could cause actual results to differ materially from those discussed in any forward-looking statements

include the risks described in the Company's Annual Report on Form 20-F for the year ended December 31,

2005 and other public filings made by the Company with the United States Securities and Exchange

Commission, which risk factors are incorporated herein by reference. The Company disclaims any obligation

to update developments of these risk factors or to announce publicly any revision to any of the forward-

looking statements contained in this release, or to make corrections to reflect future events or developments.

Welcome Remarks

Alexander Izosimov, Chief Executive Officer

Quarterly Financial Dynamics

Net Revenues, $ mln

Net Income, $ mln

OIBDA, $ mln

OIBDA Margin, $ mln

+59.4%

890.3

910.4

936.2

1,121.5

1,358.9

1,451.4

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

+30.5%

198.0

268.4

194.9

150.2

151.7

194.9

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

+64.4%

689.8

717.8

561.6

482.6

419.7

450.0

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

50.5%

46.1%

51.6%

50.1%

52.8%

47.5%

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

2006 Financial Highlights

Net Revenues, $ mln

Net Income, $ mln

OIBDA, $ mln

OIBDA Margin, $ mln

+51.6%

1,329.7

2,113.0

3,211.1

4,868.0

2003

2004

2005

2006

+31.9%

228.8

350.4

615.1

811.5

2003

2004

2005

2006

+56.0%

613.2

1026.7

1571.3

2451.8

2003

2004

2005

2006

50.4%

48.9%

48.6%

46.1%

2003

2004

2005

2006

Net Operating Cash Flow vs

CAPEX

* Net operating cash flow as % of Capex

70.3%*

79.1%*

130.4%*

64.7%*

1,292.9

803.9

511.9

1,971.3

1,635.3

1,242.0

728.0

1,512.1

2003

2004

2005

2006

Net Operating Cash Flow, $ mln

Capex, $ mln

Strong Balance Sheet

Source: VimpelCom

*LTM OIBDA constitutes the sum of the lines: LTM Operating income and LTM

Depreciation

and amortization

LTM stands for “last twelve months”

to reporting date

* * Includes Impairment of long-lived assets

* * * In cases when OIBDA is part of financial ratios it is deemed to be calculated in

accordance with the reconciliation tables herein

Assets and Liabilities, $ mln

($ mln)

12/31/06

12/31/05

12/31/04

Cash and Cash Equivalents

344

364

306

Total Assets

8,437

6,307

4,780

Total Debt

2,489

1,998

1,581

-Short-term

424

421

190

-Long-term

2,065

1,577

1,391

Shareholders' Equity

3,943

2,741

2,157

LTM OIBDA*

2,452

1,571

1,027

- LTM Depreciation and

amortization**

1,055

593

353

- LTM Operating Income

1,397

978

674

LTM Interest

186

147

Debt/Equity

0.6

0.7

Debt/OIBDA***

1.0

1.3

1.5

OIBDA/Interest

13.2

10.7

Debt/Assets

0.3

2,489

1,581

1,998

4,780

6,307

8,437

2004

2005

2006

Total Debt

Total Assets

Sources of Growth

4,868

3,211

290

1,367

2005

Russia

CIS

2006

2,452

1,571

796

2005

Russia

CIS

2006

Net Revenue Growth, 2005 to 2006, $ mln

OIBDA Growth, 2005 to 2006, $ mln

Subscribers

Growth, 2005 to 2006, ‘000

45,430

55,136

5,045

4,661

2005

Russia

CIS

2006

Operating Highlights: Russia

MOU (min)

ARPU(US$)

Subscriber Base, mln

Subscriber Market Share

34%

33%

19%

18%

19%

12%

13%

14%

34%

35%

32%

19%

15%

14%

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

MTS

VimpelCom

MegaFon

Others

9.0

8.4

7.8

9.0

7.7

7.0

6.6

7.4

10.9

10.6

8.9

8.6

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

ARPU active base

ARPU

129.9

131.4

132.0

140.7

151.9

157.9

111.6

109.5

110.6

115.9

123.2

129.8

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

MOU active base

MOU

46.9

47.7

48.1

43.1

44.8

38.4

32.2

35.9

37.4

6.2

7.2

7.4

8.7

8.3

38.2

39.8

38.8

8.9

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

Active

Inactive

Financial Highlights: Russia 4Q 2006

Net Revenues, $ mln

OIBDA, $ mln

230.8

622.6

146.4

297.4

225.7

380.0

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

CAPEX, $ mln

23.9%

32.5%

36.1%

41.6%

49.4%

47.5%

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

CAPEX / Revenue, LTM

+59.6%

645.1

666.4

529.7

462.3

404.1

431.4

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

+49.1%

842.2

859.2

871.0

1,020.5

1,228.1

1,280.8

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

3.8

3.2

2.9

2.5

2.1

1.7

2.1

2.2

3.1

0.7

1.8

1.6

2.6

0.6

0.4

0.7

0.24

0.04

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

Active

Inactive

Operating Highlights: Kazakhstan

ARPU

(US$)

MOU (min)

Subscriber Base, mln

Subscriber Market Share

62%

60%

55%

52%

36%

37%

41%

44%

46%

49%

47%

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

K'Cell

VIP

Others

10.8

10.3

8.8

12.6

13.8

10.5

9.1

7.8

10.0

11.3

10.8

14.4

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

ARPU active base

ARPU

55.1

49.2

44.8

66.3

78.0

53.5

43.4

40.0

52.4

60.8

87.5

68.6

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

MOU active base

MOU

Financial Highlights: Kazakhstan

+110.0%

18.5

17.0

21.9

33.9

49.0

35.7

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

Net Revenues, $ mln

OIBDA, $ mln

CAPEX, $ mln

CAPEX / Revenue, LTM

+128.5%

112.4

103.5

80.1

54.0

49.2

48.1

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

48.8

54.6

36.5

35.7

57.2

30.9

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

67.0%

77.5%

80.9%

69.3%

64.2%

50.2%

3Q 05

4Q 05

1Q 06

2Q 06

3Q 06

4Q 06

Operating and Financial Highlights:

Ukraine

Subscriber Base, mln

ARPU

(US$)

MOU (min)

Net Revenue, $ mln

4.3

3.4

5.9

6.7

4.2

4.1

2.6

4.7

5.5

3.4

4Q05

1Q06

2Q06

3Q06

4Q06

ARPU active base

ARPU

36.2

60.8

172.4

168.4

149.1

34.6

47.3

137.2

139.0

122.4

4Q05

1Q06

2Q06

3Q06

4Q06

MOU active base

MOU

+615.0%

2.0

2.1

5.8

11.5

14.3

4Q05

1Q06

2Q06

3Q06

4Q06

1.88

0.26

0.14

0.47

0.77

0.14

0.10

0.17

0.26

0.28

1.52

0.36

0.57

0.94

4Q05

1Q06

2Q06

3Q06

4Q06

Active

Inactive

0.77

0.37

0.43

0.48

0.70

0.05

0.02

0.07

0.42

0.45

0.55

1Q06

2Q06

3Q06

4Q06

Active

Inactive

Operating and Financial Highlights:

Uzbekistan

16.6

12.7

11.8

9.8

11.2

11.3

11.1

8.8

1Q06

2Q06

3Q06

4Q06

ARPU active base

ARPU

453.5

349.3

304.8

268.8

307.3

311.5

285.0

240.1

1Q06

2Q06

3Q06

4Q06

MOU active base

MOU

Subscriber Base, mln

Net Revenue, $ mln

ARPU

(US$)

MOU (min)

8.9

15.0

15.7

15.8

1Q06

2Q06

3Q06

4Q06

0.07

0.03

0.01

0.02

0.07

0.03

0.01

4Q05

1Q06

2Q06

3Q06

4Q06

Active

Inactive

Operating and Financial Highlights:

Tajikistan

Subscriber Base, mln

Net Revenue, $ mln

ARPU

(US$)

MOU (min)

5.1

4.0

3.1

9.0

2.3

2.2

1.9

7.8

1Q06

2Q06

3Q06

4Q06

ARPU active base

ARPU

0.18

0.12

0.08

0.80

1Q06

2Q06

3Q06

4Q06

39.2

47.6

26.1

40.6

69.8

187.9

17.0

160.8

1Q06

2Q06

3Q06

4Q06

MOU active base

MOU

Operating and Financial Highlights:

Armenia

Note: Data for 4Q represent data for 1.5 months since the date of VimpelCom’s

acquisition

4Q 2006

Net operating revenues (million US$)

27.37

including mobile revenues

10.45

including fixed revenues

16.92

OIBDA (million US$)

13.29

OIBDA margin

48.6%

Net income (million US$)

2.93

Mobile subscribers

452,000

ARPU mobile (US$)

15.7

Mobile subscriber market share, EOP

38.2%

Fixed subscribers

608,500

ARPU fixed (US$)

18.5

Total assets (million US$)

622.6

Strategy Going Forward

•

Grow ARPUs

and customer loyalty

through pricing excellence and new

VAS

•

Strengthen corporate segment

•

Develop strong, situation-specific

value propositions in local markets

•

Explore consolidation opportunities

•

Focus on subscriber growth

•

Leverage unified business platform

developed in Russia

•

Pursue acquisitions in remaining markets

•

Opportunistically explore deals outside

of the CIS

•

Develop business in backbone wholesale

and residential broadband

•

Build new digital service businesses,

including media, mobile TV, payment

services, etc.

•

Explore new technologies and business

platforms

Drive operations and investment efficiency

•

Re-balance focus from speed to efficiency and enhance cost transparency as markets mature

•

Avoid head-count growth in mature operations

•

Drive procurement excellence

•

Optimize capex

decisions at a granular level and continuously improve marketing spend efficiency

Build and sustain strong management capabilities

•

Offer an open and transparent, meritocracy-based environment

•

Use a global approach to hiring

•

Develop best-in-class individual development and coaching mechanisms

•

Ensure competitive, performance-based compensation packages

Extract maximum value in the

Russian business

Grow the business in the CIS

Capture attractive opportunities to

expand into new business areas

Summary

•

Continued strong financial performance.

•

ARPU turnaround in Russia and expansion into the

CIS position the Company well for future growth.

•

Strong cash generation allows the Company to pay

dividends.

•

Broadened strategy outlines our path going forward.

Questions and Answers

If you would like to ask a question, please press the star key followed by

the digit one on your touch-tone telephone.

Due

time

constraints,

ask

that

you

limit

yourselves

one

question

and one follow-up question.

If you are using a speakerphone, please make sure your mute button is

turned off to allow your signal to reach the equipment.

----------

Thank you for your interest in VimpelCom

For

information

visit

www.vimpelcom.com

or contact

Investor_Relations@vimpelcom.com

Reconciliation Tables of non-U.S. GAAP Measures to

Their

Most

Directly

Comparable

U.S. GAAP Financial

Measures

Reconciliation of OIBDA and OIBDA Margin

(Unaudited)

($'000)

Dec 31,

2006

Sept 30,

2006

June 30,

2006

March 31,

2006

Dec 31,

2005

Sept 30,

2005

Dec 31,

2006

Dec 31,

2005

Dec 31,

2004

Dec 31,

2003

OIBDA

689,825

717,796

561,555

482,607

419,692

449,957

2,451,783

1,571,310

1,026,721

613,230

Impairment loss

(7,354)

Depreciation

(265,086)

(243,593)

(194,845)

(171,094)

(143,425)

(118,000)

(874,618)

(451,152)

(281,129)

(162,769)

Amortization

(50,095)

(45,648)

(43,148)

(40,955)

(39,040)

(34,518)

(179,846)

(142,126)

(64,072)

(34,064)

Operating Income

374,644

428,555

323,562

270,558

237,227

297,439

1,397,319

978,032

674,166

416,397

OIBDA margin

47.5%

52.8%

50.1%

51.6%

46.1%

50.5%

50.4%

48.9%

48.6%

46.1%

Less: Impairment loss

(0.3%)

Less: Depreciation as % of

net operating revenues

(18.3%)

(17.9%)

(17.4%)

(18.3%)

(15.7%)

(13.3%)

(18.0%)

(14.0%)

(13.4%)

(12.2%)

Less: Amortization as %

of net operating revenues

(3.4%)

(3.9%)

(4.4%)

(4.3%)

(3.9%)

(3.7%)

(4.4%)

(3.0%)

(2.6%)

Operating Income

25.8%

31.5%

28.8%

28.9%

26.1%

33.3%

28.7%

30.5%

31.9%

31.3%

Reconciliation of OIBDA margin to operating income as percentage of

net operating revenue

Three months ended

Year Ended

Reconciliation of OIBDA to operating income

Reconciliation of OIBDA and OIBDA Margin

in Russia (Unaudited)

($'000)

Dec 31,

2006

Sept 30,

2006

June 30,

2006

March 31,

2006

Dec 31,

2005

Sept 30,

2005

OIBDA

645,144

666,354

529,704

462,337

404,113

431,423

Depreciation

(229,544)

(221,973)

(182,684)

(161,936)

(135,740)

(112,964)

Amortization

(27,091)

(26,429)

(25,657)

(24,977)

(27,998)

(26,045)

Operating Income

388,509

417,952

321,363

275,424

240,375

292,414

OIBDA margin

50.3%

54.2%

51.9%

53.1%

47.0%

51.2%

Less: Depreciation as % of net

operating revenues

(17.9%)

(18.0%)

(17.9%)

(18.6%)

(15.7%)

(13.4%)

Less: Amortization as % of net

operating revenues

(2.1%)

(2.2%)

(2.5%)

(2.9%)

(3.3%)

(3.1%)

Operating Income

30.3%

34.0%

31.5%

31.6%

28.0%

34.7%

Reconciliation of OIBDA margin to operating income as percentage

net operating revenue

Reconciliation of OIBDA to operating income

Three months ended

Reconciliation of OIBDA and OIBDA Margin

in Kazakhstan (Unaudited)

($'000)

Dec 31,

2006

Sept 30,

2006

June 30,

2006

March 31,

2006

Dec 31,

2005

Sept 30,

2005

OIBDA

35,744

49,023

33,908

21,907

16,979

18,534

Depreciation

(21,142)

(17,981)

(9,363)

(7,672)

(7,655)

(5,036)

Amortization

(9,134)

(9,550)

(9,324)

(8,785)

(8,245)

(8,473)

Operating Income

5,468

21,492

15,221

5,450

1,079

5,025

OIBDA margin

31.6%

47.0%

42.2%

40.3%

34.2%

38.6%

Less: Depreciation as % of net

operating revenues

(18.7%)

(17.2%)

(11.7%)

(14.1%)

(15.4%)

(10.5%)

Less: Amortization as % of net

operating revenues

(8.1%)

(9.2%)

(11.5%)

(16.2%)

(16.6%)

(17.6%)

Operating Income

4.8%

20.6%

19.0%

10.0%

2.2%

10.5%

Reconciliation of OIBDA to operating income

Reconciliation of OIBDA margin to operating income as percentage

net operating revenue

Three months ended

Reconciliation of OIBDA in Armenia

(Unaudited)

Note: data for 4Q represent data for 1.5 months since the moment of acquisition

($'000)

Dec 31,

2006

Sept 30,

2006

June 30,

2006

March 31,

2006

Dec 31,

2005

Sept 30,

2005

OIBDA

13,290

Depreciation

(7,148)

Amortization

(3,928)

Operating Income

2,214

OIBDA margin

48.6%

Less: Depreciation as % of net

operating revenues

(26.1%)

Less: Amortization as % of net

operating revenues

(14.4%)

Operating Income

8.1%

Reconciliation of OIBDA to operating income

Reconciliation of OIBDA margin to operating income as percentage

net operating revenue

Three Months Ended

Reconciliation of ARPU in Russia

(Unaudited)

($'000)

Dec 31,

2006

Sept 30,

2006

June 30,

2006

March 31,

2006

Dec 31,

2005

Sept 30,

2005

Service revenue and connection

fees

1,276,276

1,223,681

1,014,810

864,767

849,775

833,888

Less: Connection fees

308

410

622

404

259

325

Less: Revenue from rent of fiber-optic

channels

433

760

325

328

309

520

Service revenue used to calculate

ARPU

1,275,535

1,222,511

1,013,863

864,035

849,207

833,043

Average number of subscribers ('000)

47,541

47,306

45,803

43,919

40,484

36,182

ARPU(US$)

8.9

8.6

7.4

6.6

7.0

7.7

Average number of active subscribers ('000)

39,102

38,365

37,733

36,784

33,754

30,962

ARPU per active subscriber (US$)

10.9

10.6

9.0

7.8

8.4

9.0

Reconciliation of ARPU to service revenue and connection fees

Three months ended

Reconciliation of ARPU in Kazakhstan

(Unaudited)

($'000)

Dec 31,

2006

Sept 30,

2006

June 30,

2006

March 31,

2006

Dec 31,

2005

Sept 30,

2005

Service revenue and connection

fees

112,963

104,208

80,301

54,382

49,668

48,282

Less: Connection fees

Less: Revenue from rent of fiber-optic

channels

Service revenue used to calculate

ARPU

112,963

104,208

80,301

54,382

49,668

48,282

Average number of subscribers ('000)

3,498

3,077

2,681

2,316

1,818

1,527

ARPU(US$)

10.8

11.3

10.0

7.8

9.1

10.5

Average number of active subscribers ('000)

2,728

2,412

2,120

2,070

1,604

1,484

ARPU per active subscriber (US$)

13.8

14.4

12.6

8.8

10.3

10.8

Reconciliation of ARPU to service revenue and connection fees

Three

months

ended

Reconciliation of ARPU in Ukraine (Unaudited)

($'000)

Dec 31,

2006

Sept 30,

2006

June 30,

2006

March 31,

2006

Dec 31,

2005

Sept 30,

2005

Service revenue and connection

fees

14,652

12,320

5,948

2,103

1,952

Less: Connection fees

Less: Revenue from rent of fiber-optic

channels

Service revenue used to calculate

ARPU

14,647

12,317

5,948

2,103

1,952

Average number of subscribers ('000)

1,425

741

424

268

239

ARPU (US$)

3.4

5.5

4.7

2.6

4.1

Average number of active subscribers ('000)

1,170

611

338

208

228

ARPU per active subscriber (US$)

4.2

6.7

5.9

3.4

4.3

Reconciliation of ARPU to service revenue and connection fees

Three months ended

Reconciliation of ARPU in Uzbekistan

(Unaudited)

($'000)

Dec 31,

2006

Sept 30,

2006

June 30,

2006

March 31,

2006

Dec 31,

2005

Sept 30,

2005

Service revenue and connection

fees

16,446

16,279

15,507

9,208

Less: Connection fees

Less: Revenue from rent of fiber-optic

channels

Service revenue used to calculate

ARPU

16,446

16,279

15,507

9,208

Average number of subscribers ('000)

625

490

456

273

ARPU (US$)

8.8

11.1

11.3

11.2

Average number of active subscribers ('000)

558

458

406

185

ARPU per active subscriber (US$)

9.8

11.8

12.7

16.6

Reconciliation of ARPU to service revenue and connection fees

Three months ended

Reconciliation of ARPU in Tajikistan

(Unaudited)

($'000)

Dec 31,

2006

Sept 30,

2006

June 30,

2006

March 31,

2006

Dec 31,

2005

Sept 30,

2005

Service revenue and connection

fees

840

119

185

Less: Connection fees

Less: Revenue from rent of fiber-optic

channels

Service revenue used to calculate

ARPU

840

119

185

Average number of subscribers ('000)

ARPU (US$)

7.8

1.9

2.2

2.3

Average number of active subscribers ('000)

ARPU per active subscriber (US$)

9.0

3.1

4.0

5.1

Reconciliation of ARPU to service revenue and connection fees

Three months ended

Reconciliation of ARPU in Armenia (Unaudited)

Note: data for 4Q represent data for 1.5 months since the moment of acquisition

($'000)

Mobile ARPU

Fixed ARPU

Service revenue and connection

fees

10,451

16,922

Less: Connection fees

Less: Revenue from rent of fiber-optic

channels

Service revenue used to calculate

ARPU

10,451

16,922

Average number of subscribers ('000)

445

609

ARPU (US$)

15.7

18.5

Three months ended December 31, 2006

Reconciliation of ARPU to service revenue and connection fees