The original VimpelCom-R shareholders agreement, signed by VimpelCom, Alfa Group, Telenor and VimpelCom-R on May 30, 2001, and amended on May 15, 2002, envisaged that a merger of VimpelCom and VimpelCom-R would automatically be triggered by December 2007 if certain operating parameters and other conditions were met. It also provided for an acceleration of the merger process upon the agreement of the VimpelCom-R shareholders. Against this background, VimpelCom is now requesting shareholder approval for the issuance of 10,948,821 new common shares (the equivalent of 14,598,428 ADSs) to Alfa Group and Telenor in exchange for their shareholdings in VimpelCom-R in connection with the statutory merger of VimpelCom-R into VimpelCom. On a fully diluted basis, this represents a 21.4% economic dilution for VimpelCom shareholders. The proposed exchange of shares reflects a valuation ratio of 0.91:1 between VimpelCom-R and the rest of VimpelCom (predominantly VimpelCom's Moscow business), implying that 33.6% of VimpelCom's market capitalization is attributable to its 55.3% stake in VimpelCom-R.

Commenting upon today's announcement, Jo Lunder, Chief Executive Officer of VimpelCom, said, "When we entered into the agreements relating to VimpelCom-R in 2001, the risks that we faced in the regions were significant. It was our objective to hedge our risk by sourcing external equity capital from Alfa Group and Telenor to develop the regions. Today, the risk profile is much improved. Our regional operations are developing well and are now making a positive contribution to net income. As of today, our regional subscriber base is approximately 3.7 million, and VimpelCom-R reported for the second quarter of 2003 a positive net income, EBITDA of $33.2 million and an EBITDA margin of 36.2%, far ahead of our expectations. Moreover, we believe that we will achieve further significant growth in subscribers and profitability in the regions over the medium term. While the existing VimpelCom-R structure has served us well over the past two years, we now believe that there are significant advantages and benefits to be gained from simplifying the group's overall corporate and capital structure and at the same time offering all of our shareholders full exposure to the growth potential in the regions."

Under the terms of the proposed merger, in exchange for their shares of VimpelCom-R, Telenor will receive 3,648,141 newly-issued VimpelCom common shares (the equivalent of 4,864,188 new ADSs) and Alfa Group will receive 7,300,680 newly-issued VimpelCom common shares (the equivalent of 9,734,240 new ADSs). Following the merger, Telenor will own approximately 26.6% and 29.9%, respectively, and Alfa Group will own approximately 32.9% and 24.5%, respectively, of the Company's total voting stock and total common stock.

In anticipation of the announced merger between VimpelCom and VimpelCom-R, Alfa Group has accelerated the third tranche of its investment into VimpelCom-R in the amount of $58.52 million which was originally scheduled for November 2003. The closing of this investment was completed on August 27, 2003.

The VimpelCom Board of Directors has received an opinion from UBS Limited, the Company's financial advisor, on the fairness of the financial terms of the proposed transactions, subject to assumptions and considerations therein.

The merger of VimpelCom and VimpelCom-R with the resulting issuance of new shares in VimpelCom to Alfa Group and Telenor, together with certain other aspects of the proposed transactions, will be subject to approval by VimpelCom shareholders at an Extraordinary General Meeting of Shareholders to be held in Moscow on October 24, 2003. As interested parties to a number of the proposed transactions, Alfa Group and/or Telenor will not be eligible to vote on certain resolutions. In addition, the proposed transactions will be subject to various Russian regulatory approvals, including the Ministry for Anti-Monopoly Policy of the Russian Federation and the Russian Federal Commission on the Securities Markets, and satisfaction of certain other conditions precedent. The Board of Directors is recommending the transaction for approval by VimpelCom's shareholders at the forthcoming Extraordinary General Meeting of Shareholders.

VimpelCom will submit a copy of the materials for the Extraordinary General Meeting of Shareholders, which describes the transaction in greater detail, to the U.S. Securities and Exchange Commission and the New York Stock Exchange. An electronic copy of the shareholder meeting materials will be available for review on VimpelCom's web site in the "SEC Filings" section.

The Company's management will discuss its second quarter 2003 results and the merger proposals on a conference call on August 28, 2003 at 6:30 pm Moscow time (10:30 am EDT in New York). The call may be accessed via webcast at the following URL address https://www.vimpelcom.com. The conference call replay and the webcast will be available through September 5, 2003 and September 29, 2003, respectively. A Company presentation will be posted on VimpelCom's website https://www.vimpelcom.com.

VimpelCom is a leading provider of telecommunications services in Russia, operating under the "Bee Line" brand, which is one of the most recognized brand names in Russia. The VimpelCom Group's license portfolio covers approximately 92% of Russia's population (134 million people), including the City of Moscow, the Moscow Region and the City of St. Petersburg. 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". VimpelCom's convertible notes are listed on the NYSE under the symbol "VIP 05".

The Alfa Group of companies was established in Russia in 1988 and has evolved today into one of Russia's largest financial industrial groups. Alfa Group Consortium is active in the banking, insurance, telecommunications, asset management, oil, gas and other primary commodities, food and retail sectors. Alfa Eco is the group's main trading and industrial arm with interests in oil, metals, mining, telecommunications, foodstuffs and beverages. Alfa Bank is the largest privately-owned bank in Russia with an extensive nationwide network of more than 70 branches, and subsidiaries in Ukraine, Kazakhstan, the United Kingdom, the United States and the Netherlands. Alfa Bank holds a strategic stake in Golden Telecom (NASDAQ: GLDN), a provider of integrated telecommunications services throughout Russia and other countries of the Commonwealth of Independent States.

Telenor ASA, headquartered in Oslo, Norway, is an international provider of high quality telecommunications, data and media communication services. Telenor Mobile - the mobile business area of Telenor - is one of the world's most advanced mobile holding companies with a leading position in the Norwegian market and with ownership in 12 mobile operations throughout the world. The number of mobile subscribers as of June 30, 2003 was 13.6 million (pro rata), calculated on the basis of Telenor Mobile's ownership interests in each company and 28.8 million in total for all the companies in the Telenor Mobile portfolio. Telenor is listed on the Oslo Stock Exchange (TEL) and on NASDAQ in New York (TELN).

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, in part, to the consummation of the merger and related transactions which are subject to shareholder, regulatory and certain other approvals, as well as certain other conditions precedent, including the transfer of all of VimpelCom-R's licenses and permissions to VimpelCom. If any of the approvals are not obtained or any condition precedent is not met, the merger will not be consummated. The forward-looking statements relate to the Company's development and are based on management's best assessment of the Company's ability to consummate the merger and related transactions, its 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 unforeseen developments from regulatory authorities, competition, governmental regulations of the wireless telecommunications industry, general political uncertainties in Russia and general economic developments in Russia and other factors. As a result of such risks and uncertainties, there can be no assurance that the merger will be consummated. 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, 2002 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:

Valery Goldin
VimpelCom (Moscow)
Tel: 7(095) 974-5888
vgoldin@vimpelcom.com

Christopher Mittendorf
Edelman Financial Worldwide
Tel: 1(212) 704-8134
christopher.mittendorf@edelman.com

- Tables attached -

Open Joint Stock Company "VimpelCom - Region"
Unaudited Condensed Consolidated Statements of Income

		Three months ended June 30,		Six months ended June 30,
		2003	2002	2003	2002
		(In thousands of US dollars)
Operating revenues:
	Service revenues and connection fees	US$83,212	US$10,006	US$139,114	US$15,444
	Sales of handsets and accessories	7,700	3,367	16,423	5,398
	Other revenues	892	153	1,427	176
Total operating revenues		91,804	13,526	156,964	21,018
	Less revenue based taxes	-	(148)	-	(236)
Net operating revenues		91,804	13,378	156,964	20,782
Operating expenses:
	Service costs	17,665	2,556	33,257	4,966
	Cost of handsets and accessories sold	6,929	3,507	15,425	5,475
	Equipment lease	2,233	-	4,454	-
	Selling, general and administrative expenses	28,884	7,576	50,173	13,389
	Network maintenance	2,296	985	4,107	2,115
	Depreciation and amortization	14,161	2,121	25,471	3,186
	Provision for doubtful accounts	554	48	915	(1)
Total operating expenses		72,722	16,793	133,802	29,130
Operating income (loss)		19,082	(3,415)	23,162	(8,348)
Other income and expenses:
	Interest income	239	-	391	241
	Interest expense	(5,925)	(703)	(9,231)	(1,117)
	Net foreign exchange gain (loss)	369	(2,479)	77	(3,101)
	Other (expenses) income	(257)	25	(222)	42
Total other income and expenses		(5,574)	(3,157)	(8,985)	(3,935)
Income (loss) before income taxes and minority interest		13,508	(6,572)	14,177	(12,283)
Income taxes (expense) benefit		(4,573)	229	(5,946)	238
Minority interest in net earnings of subsidiaries		(286)	(10)	(305)	-
Net income (loss)		US$8,649*)	US$(6,353)	US$7,926	US$(12,045)
*) Net income of VimpelCom-R as a legal entity differs from the $9.025 million net income for the regional segment reported in VimpelCom's second quarter 2003 earnings release. The difference is caused by the contribution from BeeLine-Samara which operates in the Samara region but, for historical reasons, is owned by VimpelCom (and therefore is not reflected in the VimpelCom-R financials). The following table provides reconciliation between the two figures (all numbers are in thousands of US$ and relate to the second quarter of 2003):   Net income of VimpelCom-R 8,649 Net income of BeeLine-Samara 740 Net effect of transactions between VimpelCom-R and BeeLine-Samara (364) Net income of VimpelCom's regional segment 9,025

Open Joint Stock Company "VimpelCom - Region" Unaudited Consolidated Condensed Balance Sheet
		June 30, 2003	December 31, 2002
		(In thousand US dollars)
Assets
Current assets:
	Cash and cash equivalents	US$28,640	US$52,703
	Trade accounts receivable	5,749	2,768
	Other current assets	109,626	68,348
Total current assets		144,015	123,819
Non-current assets:
	Property and equipment, net	470,746	277,480
	Other intangible assets, net	13,921	10,780
	Telecommunication licenses and allocation of frequencies, net	94,634	72,322
	Other assets	30,371	22,975
Total non-current assets		609,672	383,557
Total assets		US$753,687	US$507,376
Liabilities and shareholders' equity
Current liabilities:
	Accounts payable	US$32,569	US$20,523
	Due to related parties	60,297	25,157
	Customer deposits and advances	15,937	14,046
	Deferred revenue	661	699
	Ruble denominated bonds payable	98,852	-
	Bank loans, current portion	911	1,157
	Capital lease obligation, current portion	2,897	3,196
	Equipment financing obligations, current portion	61,657	74,295
	Accrued liabilities	5,825	3,103
Total current liabilities		279,606	142,176
Deferred income taxes		23,300	18,689
Bank loans, less current portion		70,824	39,380
Long-term loans due to VimpelCom		94,363	40,000
Equipment financing obligations, less current portion		11,106	6,563
Minority Interest		3,091	188
Shareholders' equity		271,397	260,380
Total liabilities and shareholders' equity		US$753,687	US$507,376
Open Joint Stock Company "VimpelCom - Region" Unaudited Condensed Consolidated Statements of Cash Flows
		Six months ended June 30,
		2003	2002
		(In thousands of US dollars)
Net cash provided by (used in) operating activities		US$32,836	US$(13,503)
Proceeds from bank and other loans		99,144	1,037
Proceeds from loans from VimpelCom		54,243	27,700
Proceeds from issuance of ruble denominated bonds		97,119	-
Repayment of bank and other loans		(34,488)	(1,037)
Repayment of equipment financing obligations		(120,259)	-
Repayment of capital lease obligations		(119)	(943)
Net cash provided by financing activities		95,640	26,757
Purchase of property and equipment		(103,951)	(30,077)
Purchase of StavTeleSot stock, net of cash acquired of US$658		(38,143)	-
Purchase of intangible assets		(8,944)	(2,111)
Purchase of other assets		(3,058)	(1,325)
Net cash used in investing activities		(154,096)	(33,513)
Effect of exchange rate changes on cash		1,557	(294)
Net decrease in cash		(24,063)	(20,553)
Cash and cash equivalents at beginning of period		52,703	28,602
Cash and cash equivalents at end of period		US$28,640	US$8,049
Supplemental cash flow information
Non-cash activities:
	Equipment acquired under financing agreements	US$23,940	US$36,416
	Accounts payable for equipment and other long-lived assets	21,510	2,942
Acquisitions:
	Fair value of assets acquired	66,634	-
	Difference between the amount paid and the fair value of net assets acquired	(4,699)	-
	Cash paid for the capital stock	(38,801)	-
	Liabilities assumed	US$23,134	US$-

Notes:

1. EBITDA is a non-U.S. GAAP financial measure. EBITDA, which represents operating income before depreciation and amortization, should not be considered in isolation as an alternative to net income, operating income or any other measure of performance under U.S. GAAP. We believe that EBITDA is viewed as a relevant supplemental measure of performance in the wireless telecommunications industry. The performance that EBITDA measures does not include our need to replace our capital equipment over time. Reconciliation of EBITDA to operating income, the most directly comparable U.S. GAAP financial measure, is presented below.
2. EBITDA margin is EBITDA expressed as a percentage of net operating revenues. Reconciliation of EBITDA margin to operating income as percentage of net revenues, the most directly comparable U.S. GAAP financial measures, is presented below.

Reconciliation of VimpelCom-Region EBITDA to operating income
(In thousands of US dollars)

	Three months ended
	June 30, 2003	March 31, 2003	June 30, 2002
EBITDA	US$33,243	US$15,390	US$(1,294)
Depreciation	(8,524)	(6,760)	(1,985)
Amortization	(5,637)	(4,550)	(136)
Operating income	US$19,082	US$4,080	US$(3,415)

Reconciliation of VimpelCom-Region EBITDA margin to operating income as percentage of net revenues

	Three months ended
	June 30, 2003	March 31, 2003	June 30, 2002
EBITDA margin	36.21%	23.61%	(9.67%)
Depreciation as percentage of net revenues	(9.28%)	(10.37%)	(14.84%)
Amortization as percentage of net revenues	(6.14%)	(6.98%)	(1.02%)
Operating income as percentage of net revenues	20.79%	6.26%	(25.53%)

Reconciliation of VimpelCom-Region EBITDA to operating income
(In thousands of US dollars)

	Six months ended
	June 30, 2003	June 30, 2002
EBITDA	US$48,633	US$(5,162)
Less: Depreciation	(15,284)	(2,915)
Less: Amortization	(10,187)	(271)
Operating income	US$23,162	US$(8,348)

Reconciliation of VimpelCom-Region EBITDA margin to operating income as percentage of net operating revenues

	Six months ended
	June 30, 2003	June 30, 2002
EBITDA margin	31.0%	(24.8%)
Less: Depreciation as percentage of net operating revenues	(9.7%)	(14.0%)
Less: Amortization as percentage of net operating revenues	(6.5%)	(1.3%)
Operating income as percentage of net operating revenues	14.8%	(40.2%)