VimpelCom Group Issues Ruble Bonds in the Equivalent Amount of Approximately $428 Million

2008-07-25 09:26:00

VimpelCom Group Issues Ruble Bonds in the Equivalent Amount of Approximately $428 Million

    MOSCOW, July 25 /EMWPresswire/ -- Open Joint Stock Company

"Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP) today

announced that it has issued Russian ruble-denominated bonds through LLC

VimpelCom-Invest, a consolidated Russian subsidiary of VimpelCom, in an

aggregate principal amount of 10 billion Russian rubles, which is the

equivalent of approximately $428 million at today's Central Bank of Russia

exchange rate. The bonds are guaranteed by VimpelCom. The bonds are due on

July 19, 2013. Interest will be paid semiannually. The annual interest rate

for the first three payment periods is 9.05%. VimpelCom-Invest will

determine the annual interest rate for subsequent periods based on market

conditions. Bond holders will have the right to sell their bonds to

VimpelCom-Invest when the annual interest rate for subsequent periods is

announced at the end of the third payment period. The proceeds of the

offering will be used for the development and expansion of VimpelCom's

networks, including through possible acquisitions or investments in

existing operators, and to repay indebtedness.



    This release shall not constitute an offer to sell or the solicitation

of an offer to buy the securities, nor shall there be any sale of the

securities in any state in which such offer, solicitation or sale would be

unlawful prior to registration or qualification under the securities laws

of any such state. The securities will not be registered under the

Securities Act of 1933, as amended (the "Securities Act"). Unless and until

so registered, the securities may not be offered or sold in the United

States except pursuant to an exemption from, or in a transaction not

subject to, the registration requirements of the Securities Act and

applicable state securities laws.



    The VimpelCom Group is a telecommunications operator, providing voice

and data services, covered through a range of wireless, fixed and broadband

technologies. The Group includes companies operating in Russia, Kazakhstan,

Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia, in territories with a

total population of about 250 million. 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 release 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 to the Company's

intended use of the proceeds from the bond issue described above and are

based on Management's best assessment of the Company's strategic and

financial position and of future market conditions and trends. These

statements involve risks and uncertainties. The actual outcome may differ

materially from these statements as a result of, among other things,

unforeseen developments from competition, governmental regulations of the

wireless telecommunications industry, general political uncertainties and

general economic developments in Russia, the CIS and VimpelCom's other

areas of operation. 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 telecommunications industry in Russia, the CIS and

VimpelCom's other areas of operations will not have a material adverse

effect on the VimpelCom Group and there can be no assurance that VimpelCom

will be able to use the proceeds as stated herein. 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, 2007 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.





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