Moscow and New York (Sepember 24, 2008) - Open Joint Stock Company “Vimpel-Communications” (“VimpelCom” or the “Company”) (NYSE: VIP) announced today that its joint venture company in Vietnam, GTEL-Mobile Joint Stock Company (the “Joint Venture Company”), has received a GSM license and frequencies.
As previously reported, in July 2008 VimpelCom signed a Joint Venture and Shareholders Agreement (the “Agreement”) to establish the Joint Venture Company with Global Telecommunications Corporation (“GTEL”), a Vietnamese state-owned enterprise, and GTEL TSC, a subsidiary of GTEL. With the issuance of the GSM license and frequencies, the Joint Venture Company has now received all of the regulatory approvals required under the Agreement, including the registration of the Joint Venture Company.
VimpelCom is paying US$267 million for its 40% equity interest in the Joint Venture Company. GTEL and GTEL TSC will have an equity interest of 51% and 9%, respectively, in the Joint Venture Company.
Alexander Izosimov, CEO of VimpelCom said, “The registration of GTEL-Mobile and the receipt of the GSM license and frequencies is the key milestone in the building of our Vietnamese business. Now, with all the procedural issues solved, we can focus all our efforts on the network rollout and the preparation of commercial launch. The experience that our team has already gained in Vietnam will help us to work effectively going forward and to take advantage of all the opportunities the Vietnamese market offers.”
The VimpelCom Group consists of telecommunications operators providing voice and data services through a range of wireless, fixed and broadband technologies. The Group includes companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia. The VimpelCom Group has licenses to operate in territories with a total population of about 340 million. The Group companies provide services under the "Beeline" brand. 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".
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