The Supreme Arbitration Court upholds the acquisition of Ukrainian Radio Systems
Moscow and New York (June 5, 2007) — Open Joint Stock Company "Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP), today announced that the Supreme Arbitration Court of Russia has ruled in favor of VimpelCom in one of the lawsuits filed by Telenor East Invest AS. We are pleased with the court’s decision which upheld the validity of the September 2005 shareholder vote which approved the acquisition of CJSC "Ukrainian Radio Systems" ("URS") as an interested party transaction.
Today’s ruling is final and may not be appealed.
With today’s ruling, VimpelCom has now conclusively won two of the three lawsuits brought by Telenor East Invest AS in connection with the acquisition of URS. The remaining lawsuit brought by Telenor East Invest AS to declare invalid and unwind the URS transaction was won by VimpelCom in the lower court and has been appealed by Telenor. The appeal is scheduled to be heard by the Court of Appeals on June 25, 2007. VimpelCom will continue to vigorously defend its position in this lawsuit.
The VimpelCom Group includes companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia. The VimpelCom Group's GSM and 3G license portfolio covers a territory with a population of about 250 million. This includes the entire territories of Russia, 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".
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 pending litigation relating to the Company’s acquisition of URS. There can be no assurance that the Company will prevail in its pending litigation with Telenor. 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 additional 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, 2006 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 press release, or to make corrections to reflect future events or developments.
For more information, please contact:
Tel: 7 (495) 974-5888
|Peter Schmidt/Michael Polyviou
Tel: 1 (212) 850-5600