Amsterdam and New York (May 6, 2011) – VimpelCom Ltd. (“VimpelCom” or the “Company”) (NYSE: VIP) announced that its subsidiary OJSC VimpelCom reached final agreements and signed the required documents to acquire 100% of the shares of Open Joint-Stock Company “New Telephone Company” (“NTC”) from KT Corporation and Summit Telecom Global Management B.V., subsidiary of Sumitomo Corporation. The acquisition price for 100% of NTC shares is based on Enterprise Value of US$ 420 million.

VimpelCom expects to acquire 90% of NTC shares within the following four weeks. Immediately following the acquisition of 90% NTC shares VimpelCom will launch mandatory tender offer under Russian law to acquire the remaining 10% of the outstanding NTC shares. Completion of tender offer is expected to occur in the third quarter of 2011. 

NTC is a leading mobile operator in the Primorskiy region of Russia and provides voice and data services through a wide range of wireless, fixed and broadband solutions as well as IPTV and IP–telephony. In 2010, NTC recorded approximately RUR 3.4 billion in revenues and had a mobile subscriber base of approximately 950,000 as of 2010 year-end.

Commenting on the transaction, Elena Shmatova, Head of the Russia Business Unit of VimpelCom, said: “We are happy to have reached agreements to acquire NTC and look forward to closing the transaction. The acquisition substantially enhances our position in one of the most important regions in the Far East of Russia.”

About VimpelCom

VimpelCom is one of the world’s largest integrated telecommunications services operators offering a wide range of wireless, fixed, and broadband services in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Vietnam, Cambodia, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Namibia, Central African Republic, Italy and Canada.  VimpelCom’s operations around the globe cover territory with a total population of approximately 843 million people.  VimpelCom provides services under the "Beeline", "Kyivstar", "djuice", “Wind”, "Infostrada" “Mobilink”, “Leo”, “Banglalink”, “Telecel”, and “Djezzy” brands. As of December 31, 2010 VimpelCom had 181 million mobile subscribers. VimpelCom is traded on the New York Stock Exchange under the symbol (VIP). For more information visit: www.vimpelcom.com.

Cautionary statement regarding forward-looking statements

This announcement contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts, and include statements regarding the anticipated completion of the transaction described above and the benefits thereof.  Any statement in this announcement that expresses or implies VimpelCom’s intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a forward-looking statement. Forward-looking statements involve inherent risks, uncertainties and assumptions, including, without limitation, the risk that the expected benefits from the transaction may not materialize as expected. If such risks or uncertainties materialize or such assumptions prove incorrect, actual results could differ materially from those expressed or implied by such forward-looking statements and assumptions. Certain other risks that could cause actual results to differ materially from those discussed in any forward-looking statements include the risk factors described in VimpelCom’s proxy statement furnished to the U.S. Securities and Exchange Commission (the “SEC”) under cover of Form 6-K on February 15, 2011, VimpelCom’s registration statement on Form F-4 filed with the SEC, OJSC VimpelCom’s public filings with the SEC, including its Annual Report on Form 20-F for the year ended December 31, 2009, and other public filings made by the VimpelCom with the SEC, which risk factors are incorporated herein by reference. The forward-looking statements contained in this announcement are made as of the date hereof, and VimpelCom expressly disclaim any obligation to update or correct any forward-looking statements made herein due to the occurrence of events after the issuance of this announcement.