Edgar Filing: OPEN JOINT STOCK CO VIMPEL COMMUNICATIONS

Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of March 2008

Commission File Number 1-14522

Open Joint Stock Company “Vimpel-Communications”

(Translation of registrant’s name into English)

10 Ulitsa 8-Marta, Building 14, Moscow, Russian Federation 127083

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F [X] Form 40-F [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): .

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): .

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [ ] No [X]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	OPEN JOINT STOCK COMPANY “VIMPEL-COMMUNICATIONS”
	(Registrant)

Date: March 12, 2008	By:	/s/ Alexander V. Izosimov
	Name:	Alexander V. Izosimov
	Title:	Chief Executive Officer and General Director

FOR IMMEDIATE RELEASE

VIMPELCOM ANNOUNCES FOURTH QUARTER AND AUDITED TWELVE MONTH 2007

FINANCIAL AND OPERATING RESULTS

Moscow and New York (March 12, 2008) - Open Joint Stock Company “Vimpel-Communications” (“VimpelCom” or the “Company”) (NYSE: VIP), a leading provider of telecommunications services in Russia and the Commonwealth of Independent States (CIS) today announced its financial and operating results for the quarter and year ended December 31, 2007.

Financial and Operating Highlights

2007

•

Net operating revenues reached $7,171.1 million, an increase of 47.3% versus 2006.

•

OIBDA reached $3,596.7 million, an increase of 46.7% versus 2006.

•

OIBDA margin was 50.2%, including 50.9% in Russia and 52.8% in Kazakhstan.

•

Net income totaled $1,462.7 million, an increase of 80.2% versus 2006.

•

Free cash flow before acquisitions almost tripled, reaching US$1,264.7 million.

•

Russian ARPU showed strong growth through the year, reaching $13.5 by the fourth quarter, an increase of 23.9% compared to the fourth quarter of 2006.

•

Active subscriber base increased by 6.2 million, reaching 51.7 million consumers.

•

3G licenses for Russia, Uzbekistan and Armenia were received.

•

Acquisition of Golden Telecom was launched in 2007 and completed in February 2008.

The Fourth Quarter of 2007

•

Net operating revenues reached a record high of $2,009.9 million in the fourth quarter, a year-on-year increase of 38.5% and a quarter-on-quarter increase of 2.8%.

•

OIBDA reached $918.4 million, a year-on-year increase of 33.1%, yielding an OIBDA margin of 45.7%. Importantly, rapid appreciation of VimpelCom’s share price in the fourth quarter of 2007 resulted in an accrual of $118.7 million, connected to our stock price based compensation plans. These accruals are $78.2 million higher than in the third quarter of 2007 and $94.5 million higher than in the fourth quarter of the previous year. Without this effect our OIBDA margin would have been above 50%.

•

Net income totaled $368.1 million, a year-on-year increase of 86.0%.

Commenting on today’s announcement, Alexander Izosimov, Chief Executive Officer of VimpelCom, said: “2007 was another excellent year for VimpelCom. Our revenues exceeded $7 billion and grew at a remarkable rate of 47%. We maintained our OIBDA margin at an impressive level of 50%. Strong revenue growth, coupled with a healthy margin and a balanced investment policy, resulted in free cash flow of $1.26 billion, almost tripling the 2006 level.

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VimpelCom Announces Fourth Quarter And Annual 2007 Financial And Operating Results

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“Our strong financial position supports our aspiration to expand into adjacent businesses and new geographic areas”.

Changes in definitions and reported data

Our 2007 subscriber data, ARPU and MOU are reported on the basis of active subscribers. For convenience, we continued to report the registered subscriber base and the related figures for comparable periods (see Attachment A for relevant definitions and refer to Attachment D for relevant data). The only exception was churn numbers, calculated traditionally on the basis of registered subscribers.

We intend to discontinue providing the number of registered subscribers and the related figures beginning with the Company’s earnings press release for the first quarter 2008, because we believe that registered subscriber figures have become irrelevant for operational purposes. We will also align our reported churn policy to our active subscriber base.

All the definitions in Attachment A refer to mobile subscribers. With the acquisition of Armentel, the Company also has fixed-line subscribers which are treated separately.

Attachments A, B, C and D present respectively

•

definitions for certain terms used in this press release,

•

the condensed consolidated financial statements of VimpelCom,

•

tables with relevant reconciliations of non-U.S. GAAP financial measures to their most directly comparable U.S. GAAP financial measures, and

•

certain additional reference data relating to the registered subscriber base.

Key Consolidated Financial and Operating Results


	Three months										Year
	4Q2007		4Q2006		Change, 4Q07/ 4Q06		3Q2007		Change, 4Q07/ 3Q07		2007		2006		Change, 2007/ 2006
Active subscribers	51,739,947		45,547,700		13.6	%	50,685,787		2.1	%	51,739,947		45,547,700		13.6	%
Fixed line subscribers	629,273		608,500		3.4	%	616,175		2.1	%	629,273		608,500		3.4	%
Net operating revenues (US$, 000)	2,009,946		1,451,412		38.5	%	1,955,938		2.8	%	7,171,098		4,867,978		47.3	%
OIBDA (US$, 000)	918,410		689,825		33.1	%	1,015,158		-9.5	%	3,596,743		2,451,783		46.7	%
OIBDA margin	45.7	%	47.5	%			51.9	%			50.2	%	50.4	%
Gross margin (US$, 000)	1,642,701		1,179,453		39.3	%	1,589,625		3.3	%	5,855,984		3,977,246		47.2	%
Gross margin percentage	81.7	%	81.3	%			81.3	%			81.7	%	81.7	%
SG&A (US$, 000)	715,892		478,423		49.6	%	556,518		28.6	%	2,206,322		1,503,615		46.7	%
SG&A percentage	35.6	%	33.0	%			28.5	%			30.8	%	30.9	%
Net income (US$, 000)	368,108		197,950		86.0	%	458,050		-19.6	%	1,462,706		811,489		80.2	%
Net income per share (US$)	7.25		3.89				9.02				28.78		15.94
Net income per ADS*) (US$)	0.36		0.19				0.45				1.44		0.80

^*)	Number of ADSs is based on the ratio of 20 ADSs per one ordinary share, which came into effect on August 21, 2007. Prior year amounts have been restated to reflect the split.

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VimpelCom Announces Fourth Quarter And Annual 2007 Financial And Operating Results

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In 2007, VimpelCom capital expenditures totaled $1,772.8 million (before acquisitions), including $795.8 million in the fourth quarter.

Consolidated figures represent the combined effect of the Company’s operations in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia. The Company’s consolidated operating and financial results reported in this press release do not include the operating and earnings results of Golden Telecom, Inc., the acquisition of which was completed in February 2008. The Company plans to include Golden Telecom’s operating and earnings results with the Company’s consolidated operating and earnings results beginning in the first quarter of 2008.

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RUSSIA	Three months										Year
RUSSIA	4Q2007		4Q2006		Change, 4Q07/ 4Q06		3Q2007		Change, 4Q07/ 3Q07		2007		2006		Change, 2007/ 2006
Net operating revenues^*)(US$, 000)	1,700,589		1,280,762		32.8	%	1,652,266		2.9	%	6,090,315		4,400,299		38.4	%
including interconnect revenue	252,839		167,808		50.7	%	224,402		12.7	%	851,323		411,916		106.7	%
OIBDA (US$, 000)	773,338		645,144		19.9	%	871,163		-11.2	%	3,100,804		2,303,539		34.6	%
OIBDA margin	45.4	%	50.3	%			52.7	%			50.9	%	52.3	%
Gross margin (US$, 000)	1,410,421		1,061,055		32.9	%	1,363,407		3.4	%	5,047,001		3,652,249		38.2	%
Gross margin percentage	82.9	%	82.8	%			82.5	%			82.8	%	83.0	%
SG&A (US$, 000)	632,640		406,642		55.6	%	477,277		32.6	%	1,903,411		1,330,806		43.0	%
SG&A percentage	37.2	%	31.7	%			28.9	%			31.2	%	30.2	%
Net income (US$, 000)	363,624		222,220		63.6	%	422,580		-14.0	%	1,422,223		854,818		66.4	%

ARPU, (US$)	13.5		10.9		23.9	%	13.4		0.7	%	12.6		9.6		31.3	%
MOU, (min)	204.1		157.9		29.3	%	208.9		-2.3	%	192.1		145.9		31.7	%
SAC (US$)	31.8		21.8		45.9	%	24.8		28.2	%	25.5		17.9		42.5	%
Active subscribers	42,221,252		39,782,700		6.1	%	41,801,545		1.0	%	42,221,252		39,782,700		6.1	%
Churn	7.1	%	9.5	%			10.1	%			32.9	%	35.4	%
Subscriber market share^**)	29.9	%	31.7	%			30.4	%			29.9	%	31.7	%

^*)	Net operating revenues here exclude inter-company transactions (US$983 thousand in 4Q 2007, US$578 thousand in 4Q 2006, US$696 thousand in 3Q 2007, US$3,354 thousand in 2007, US$1,509 thousand in 2006).

^**)	Subscriber market share data presented here and in the following country tables are published by AC&M-Consulting and are generally based on registered subscribers.

Our Russian business continues to deliver robust growth, strong margins and expanding cash flow.

In 2007, revenue in Russia grew by 38.4% year-on-year, driven predominantly by ARPU growth and supported by a continued increase in our active subscriber base.

Our annual OIBDA margin in Russia was at a strong level of above 50%. While OIBDA margin in the fourth quarter is seasonally softer than in the third quarter, the sharper than usual erosion this year was due to particularly large accruals connected to our stock price based compensation plans. Rapid appreciation of VimpelCom’s share price in the fourth quarter of 2007 resulted in an accrual of $118.7 million, which is $78.2 million higher than in the third quarter of 2007 and $94.5 million higher than in the fourth quarter of the previous year. These accruals for the VimpelCom group are fully reflected within the Russian numbers.

Excluding this impact, our 2007 OIBDA margin would have been slightly above the 2006 margin, both for the fourth quarter and the full year, confirming the financial health of our business.

In 2007, our annual capital expenditure (before acquisitions) in Russia was approximately $1.1 billion, bringing its percentage to revenue to our long-term target of below 20%.

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KAZAKHSTAN	Three months										Year
KAZAKHSTAN	4Q2007		4Q2006		Change, 4Q07/ 4Q06		3Q2007		Change, 4Q07/ 3Q07		2007		2006		Change, 2007/ 2006
Net operating revenues^*)(US$, 000)	173,902		112,378		54.7	%	166,262		4.6	%	607,642		350,043		73.6	%
including interconnect revenue	33,027		26,278		25.7	%	28,494		15.9	%	108,522		81,325		33.4	%
OIBDA (US$, 000)	92,171		35,744		157.9	%	88,127		4.6	%	322,623		140,580		129.5	%
OIBDA margin	52.8	%	31.6	%			52.7	%			52.8	%	40.0	%
Gross margin (US$, 000)	128,390		77,269		66.2	%	122,084		5.2	%	450,624		240,002		87.8	%
Gross margin percentage	73.5	%	68.4	%			73.1	%			73.8	%	68.2	%
SG&A (US$, 000)	33,787		40,200		-16.0	%	32,650		3.5	%	123,584		96,451		28.1	%
SG&A percentage	19.3	%	35.6	%			19.5	%			20.2	%	27.4	%
Net income^**) (US$, 000)	19,793		-4,443				21,653		-8.6	%	70,963		9,902		616.7	%

ARPU, (US$)	13.0		13.8		-5.8	%	13.6		-4.4	%	13.1		12.6		4.0	%
MOU, (min)	98.9		78.0		26.8	%	112.7		-12.2	%	94.6		70.4		34.4	%
SAC (US$)	16.3		8.8		85.2	%	10.0		63.0	%	11.5		8.2		40.2	%
Active subscribers	4,603,300		3,052,900		50.8	%	4,343,073		6.0	%	4,603,300		3,052,900		50.8	%
Churn	5.8	%	6.1	%			5.9	%			23.5	%	32.8	%
Subscriber market share	46.3	%	49.5	%			47.3	%			46.3	%	49.5	%

^*)	Net operating revenues exclude inter-company transactions (US$737 thousand in 4Q 2007, US$584 thousand in 4Q 2006, US$860 thousand in 3Q 2007, US$2,844 thousand in 2007, US$1,811 thousand in 2006).

^**)	After minority interest.

2007 was a very successful year for our business in Kazakhstan. We delivered strong year-on-year revenue growth of 73.6% with impressive OIBDA margin expansion from 40.0% to 52.8%.

The growth was driven by strong additions of 1.6 million active subscribers, representing a 50.8% year-on-year increase, accompanied by stable ARPU.

At year end, the market penetration reached 82.5%, and the level of activity in the fourth quarter confirmed that the competition is getting more intense. Consequently, while we continue to build our active subscriber base, we are starting to refocus our efforts toward increasing revenue market share – a strategy which we successfully implemented in Russia.

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UKRAINE	Three months										Year
UKRAINE	4Q2007		4Q2006		Change, 4Q07/ 4Q06		3Q2007		Change, 4Q07/ 3Q07		2007		2006		Change, 2007/ 2006
Net operating revenues^*)(US$, 000)	30,691		14,306		114.5	%	36,271		-15.4	%	105,451		33,726		212.7	%
including interconnect revenue	10,921		4,486		143.4	%	10,861		0.6	%	34,789		10,630		227.3	%
OIBDA (US$, 000)	3,643		-10,546				6,455		-43.6	%	508		-34,690
OIBDA margin	10.5	%	n/a				17.5	%			0.5	%	n/a
Gross margin (US$, 000)	20,872		7,296		186.1	%	23,314		-10.5	%	67,147		16,472		307.6	%
Gross margin percentage	60.4	%	49.3	%			63.0	%			60.2	%	46.8	%
SG&A (US$, 000)	17,547		17,624		-0.4	%	16,465		6.6	%	66,519		50,703		31.2	%
SG&A percentage	50.8	%	119.1	%			44.5	%			59.6	%	143.9	%
Net income (US$, 000)	-17,551		-21,502				-6,443				-59,619		-60,990

ARPU, (US$)	5.6		4.2		33.3	%	5.8		-3.4	%	4.7		5.0		-6.0	%
MOU, (min)	183.2		149.1		22.9	%	168.2		8.9	%	163.2		149.7		9.0	%
SAC (US$)	8.2		6.6		24.2	%	5.5		49.1	%	7.8		10.0		-22.0	%
Active subscribers	1,941,251		1,523,700		27.4	%	2,212,250		-12.2	%	1,941,251		1,523,700		27.4	%
Churn	20.9	%	0.7	%			25.5	%			61.8	%	18.6	%
Subscriber market share	4.8	%	3.8	%			5.1	%			4.8	%	3.8	%

^*)	Net operating revenues exclude inter-company transactions (US$3,854 thousand in 4Q 2007, US$490 thousand in 4Q 2006, US$708 thousand in 3Q 2007, US$6,159 thousand in 2007, US$1,500 thousand in 2006).

We are satisfied with our progress in Ukraine in 2007. Our revenues exceeded $100 million and our annual OIBDA moved into positive territory. Moreover, despite an aggressive competitive environment, our ARPU grew in the second half of the year.

As expected, two factors adversely affected our revenues in the fourth quarter. First, the active base was reduced by the departure of summer tourists who had purchased local SIM-cards, and second, roaming revenues declined seasonally. However, even with this revenue erosion, OIBDA stayed positive and ARPU remained essentially flat quarter-on-quarter.

While we have stabilized our overall financial performance, we will increase our focus on building our customer base, paying attention to subscriber quality.

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UZBEKISTAN	Three months										Year
UZBEKISTAN	4Q2007		4Q2006		Change, 4Q07/ 4Q06		3Q2007		Change, 4Q07/ 3Q07		2007		2006		Change, 2007/ 2006
Net operating revenues^*)(US$, 000)	36,364		15,795		130.2	%	29,913		21.6	%	107,449		55,358		94.1	%
OIBDA (US$, 000)	17,756		7,815		127.2	%	16,923		4.9	%	54,732		32,079		70.6	%
OIBDA margin	48.6	%	49.1	%			56.1	%			50.6	%	57.7	%
Gross margin (US$, 000)	31,048		13,869		123.9	%	25,794		20.4	%	91,989		48,776		88.6	%
Gross margin percentage	85.0	%	87.1	%			85.6	%			85.1	%	87.7	%
SG&A (US$, 000)	13,053		5,933		120.0	%	8,668		50.6	%	36,517		16,451		122.0	%
SG&A percentage	35.7	%	37.3	%			28.7	%			33.8	%	29.6	%
Net income (US$, 000)	5,950		382		1457.6	%	6,879		-13.5	%	19,570		8,241		137.5	%

ARPU, (US$)	6.8		9.8		-30.6	%	7.6		-10.5	%	7.1		11.9		-40.3	%
MOU, (min)	283.4		268.8		5.4	%	289.8		-2.2	%	274.0		320.5		-14.5	%
SAC (US$)	4.6		5.8		-20.7	%	4.4		4.5	%	4.3		7.2		-40.3	%
Active subscribers	2,119,612		700,500		202.6	%	1,586,890		33.6	%	2,119,612		700,500		202.6	%
Churn	10.6	%	10.2	%			14.2	%			61.7	%	44.9	%
Subscriber market share	37.3	%	27.2	%			35.6	%			37.3	%	27.2	%

^*)	Net operating revenues exclude inter-company transactions (US$184 thousand in 4Q 2007, US$122 thousand in 4Q 2006, US$237 thousand in 3Q 2007, US$653 thousand in 2007, US$240 thousand in 2006).

It was an excellent year for our business in Uzbekistan. In 2007, we tripled our active subscriber base, and built our subscriber market share by more than 10 percentage points, reaching 37.3%. Revenue grew by 94.1%, and OIBDA margin remained strong at more than 50%.

In the fourth quarter, our revenue grew by 21.6% versus the third quarter, driven predominantly by a 33.6% sequential growth in the number of active subscribers. With SIM-card penetration passing 20%, we will be focusing on capturing rapid subscriber growth.

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TAJIKISTAN	Three months										Year
TAJIKISTAN	4Q2007		4Q2006		Change, 4Q07/ 4Q06		3Q2007		Change, 4Q07/ 3Q07		2007		2006		Change, 2007/ 2006
Net operating revenues^*)(US$, 000)	8,030		799		905.0	%	7,615		5.4	%	23,657		1,181		1903.1	%
OIBDA (US$, 000)	1,366		-1,112				1,646		-17.0	%	2,763		-2,447
OIBDA margin	16.9	%	n/a				21.5	%			11.6	%	n/a
Gross margin (US$, 000)	5,082		372		1266.1	%	5,153		-1.4	%	15,022		520		2788.8	%
Gross margin percentage	63.0	%	45.4	%			67.3	%			63.2	%	43.3	%
SG&A (US$, 000)	3,547		1,485		138.9	%	3,515		0.9	%	12,074		2,968		306.8	%
SG&A percentage	43.9	%	181.1	%			45.9	%			50.8	%	246.9	%
Net income ^**) (US$, 000)	-2,517		-1,114				-276				-5,564		-2,395

ARPU, (US$)	9.0		9.0		0.0	%	10.8		-16.7	%	9.7		6.8		42.6	%
MOU, (min)	216.3		187.9		15.1	%	230.3		-6.1	%	220.6		121.1		82.2	%
SAC (US$)	13.0		2.5		420.0	%	12.8		1.6	%	12.5		3.3		278.8	%
Active subscribers	339,393		72,000		371.4	%	268,446		26.4	%	339,393		72,000		371.4	%
Churn	1.2	%	17.9	%			1.8	%			4.6	%	95.1	%
Subscriber market share	18.1	%	7.0	%			16.7	%			18.1	%	7.0	%

^*)	Net operating revenues exclude inter-company transactions (US$43 in 4Q 2007, US$22 thousand in 4Q 2006, US$39 thousand in 3Q 2007, US$120 thousand in 2007, US$22 thousand in 2006).

^**)	After minority interest.

In Tajikistan, our business continues to demonstrate excellent dynamics with consistent growth in financial performance and subscriber base. On a year-on-year basis, we increased our subscriber base by almost five times. We reached positive OIBDA in less than one year of operations. Further, our fourth quarter revenues were 10 times higher than in the same period a year ago without any ARPU erosion.

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ARMENIA	Three months										Year
ARMENIA	4Q2007		4Q 2006^***)		Change, 4Q07/ 4Q06		3Q2007		Change, 4Q07/ 3Q07		2007		2006^)*		Change, 2007/ 2006
Net operating revenues^*) (US$, 000), including	59,423		27,373		n/a		63,277		-6.1	%	235,123		27,373		n/a
mobile revenues	23,070		10,451		n/a		25,723		-10.3	%	91,760		10,451		n/a
fixed revenues	36,353		16,922		n/a		37,554		-3.2	%	143,363		16,922		n/a
OIBDA (US$, 000)	32,476		13,290		n/a		32,888		-1.3	%	122,743		13,290		n/a
OIBDA margin	54.3	%	48.6	%			51.9	%			52.1	%	48.6	%
Net income^**) (US$, 000)	257		2,927		n/a		15,961				22,734		2,927		n/a

Mobile active subscribers	442,484		416,000		6.4	%	446,957		-1.0	%	442,484		416,000		6.4	%
ARPU, (US$)	17.4		17.0		2.4	%	17.6		-1.1	%	16.7		17.0		-1.8	%
MOU, (min)	171.8		178.0		-3.5	%	181.0		-5.1	%	169.9		178.0		-4.5	%
Churn	23.8	%	9.1	%			4.4	%			49.7	%	9.1	%
Mobile subscriber market share	26.1	%	37.9	%			33.6	%			26.1	%	37.9	%

Fixed subscribers	629,273		608,500		3.4	%	616,175		2.1	%	629,273		608,500		3.4	%
ARPU fixed (US$)	19.6		18.5		5.9	%	20.4		-3.9	%	19.5		18.5		5.4	%

^*)	Net operating revenues exclude inter-company transactions (US$388 thousand in 4Q 2007, US$0 thousand in 4Q 2006, US$85 thousand in 3Q 2007, US$629 thousand in 2007, US$0 thousand in 2006).

^**)	After minority interest.

^***)

The 2006 numbers included only 1.5 months of operations.

Acquired in November 2006, our business in Armenia demonstrated robust margins and the highest ARPU of any country in the CIS. However, our business situation in the mobile market, particularly our subscriber market share, remains challenging. We are actively expanding coverage, improving the quality of the network, and strengthening our marketing activities to address the inherited issues of the Armenian operations.

GEORGIA

The Company launched commercial operations in Georgia on March 15, 2007. Currently, we are continuing to build the network and develop our sales and distribution channels. At the end of 2007, we received frequencies in 900 MHz band, which will help us to improve the quality, speed and efficiency of our network construction. In the fourth quarter, we reached 72,655 active subscribers and had revenues of US$0.95 million, representing 173.1% quarter-on-quarter subscriber growth and 187.9% revenue growth. However, our operations in this country are still in an early phase of development.

- more -

VimpelCom Announces Fourth Quarter And Annual 2007 Financial And Operating Results

Page 10 of 10

The Company’s management will discuss its fourth quarter results during a conference call and slide presentation on March 12, 2008 at 6:30 pm Moscow time (11:30 am ET in New York). The call and slide presentation may be accessed via webcast at the following URL address http://www.vimpelcom.com. The conference call replay will be available through March 19, 2008. The slide presentation webcast will also be available for download on VimpelCom’s website http://www.vimpelcom.com.

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 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 Company’s strategic and development plans, including network development plans, and developments in the telecommunications markets in which the Company operates. These and other forward-looking statements are based on management’s best assessment of the Company’s strategic and financial position and of 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 competition, governmental regulation of the telecommunications industries in Russia and the CIS, general political uncertainties in Russia and the CIS and general economic developments in Russia and the CIS, continued volatility in the world economy, challenges to 3G and Far East tenders and/or litigation with third parties. The actual outcome may also differ materially if the Company is unable to obtain all necessary corporate approvals relating to its business (including approval of funding and specific transactions), if the Company is unable to successfully integrate newly-acquired businesses, including Golden Telecom, and other factors. 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 Russian and CIS telecommunications industries will not have a material adverse effect on the VimpelCom Group. 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, 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. 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:

Alexander Boreyko		Peter Schmidt/Michael Polyviou
VimpelCom		FD
Tel: 7(495) 910-5977		Tel: 1(212) 850 5600
Investor_Relations@vimpelcom.com		mpolyviou@fd-us.com

-Definitions and tables are attached –

- more -

Attachment A: Definitions

Registered subscriber is an authorized user of cellular services, using one SIM card (GSM/3G) with one or several selective numbers or one handset (DAMPS/CDMA) with one selective number. The number of subscribers includes employees using cellular services and excludes guest roamers and users of test SIM cards or handsets.

Reported churn rate is defined as the total number of registered subscribers disconnected from our network within a given period of time expressed as a percentage of the midpoint of subscribers in our network at the beginning and end of that period. Contract subscribers are disconnected if they have not paid their bills for two months. Prepaid subscribers are disconnected in two cases: (1) an account has been blocked after the balance drops to $0 or below for up to six months, (2) an account showed no chargeable transaction for up to ten months. The exact number of months prior to the disconnection varies by country and depends on the legislation and market specifics.

Active subscribers are those subscribers in the registered subscriber base who were a party to a revenue generating activity in the past three months and remain in the base at the end of the reported period. Such activities include all incoming and outgoing calls, subscriber fee accruals, debits related to service, outgoing SMS, MMS, data transmission and receipt sessions, but do not include incoming SMS and MMS sent by our Company or abandoned calls.

Prepaid subscribers are those subscribers who pay for their services in advance.

Fixed-line subscriber is an authorized user of fixed-line communications services.

OIBDA is a non-U.S. GAAP financial measure. OIBDA, previously referred to as EBITDA by the Company, is defined as operating income before depreciation and amortization. The Company believes that OIBDA provides useful information to investors because it is an indicator of the strength and performance of our business operations, including our ability to finance capital expenditures, acquisitions and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under U.S. GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Our OIBDA calculations are commonly used as bases for some investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the wireless telecommunications industry. OIBDA should not be considered in isolation as an alternative to net income, operating income or any other measure of performance under U.S. GAAP. OIBDA does not include our need to replace our capital equipment over time. Reconciliation of OIBDA to operating income, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section.

OIBDA margin is OIBDA expressed as a percentage of total net operating revenues. Reconciliation of OIBDA margin to operating income as a percentage of total net operating revenues, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section.

Gross margin is defined as total operating revenues less service costs and cost of handsets and accessories sold.

Gross margin percentage is gross margin expressed as a percentage of total net operating revenues.

Free cash flow is calculated as operating cash flow minus accrued capital expenditures before acquisitions.

Each ADS represents 0.05 of one share of common stock. This ratio was established effective August 21, 2007.

ARPU (Monthly Average Revenue per User), a non-U.S. GAAP financial measure, is calculated by dividing the Company’s service revenue during the relevant period, including roaming revenue and interconnect revenue, but excluding revenue from connection fees, sales of handsets and accessories and other non-service revenue, by the average number of the Company’s active subscribers during the period and dividing by the number of months in that period. Reconciliation of ARPU to service revenues and connection fees, the most directly comparable U.S. GAAP financial measure, is presented below in the tables section. The Company believes that ARPU provides useful information to investors because it is an indicator of the performance of the Company’s business operations and assists management in budgeting. The Company also believes that ARPU provides management with useful information concerning usage and acceptance of the Company’s services. ARPU should not be viewed in isolation or an alternative to other figures reported under U.S. GAAP.

ARPU_REG is ARPU calculated with regard to the registered subscriber base.

MOU (Monthly Average Minutes of Use per User) is calculated by dividing the total number of minutes of usage for incoming and outgoing calls during the relevant period (excluding guest roamers) by the average number of active subscribers during the period and dividing by the number of months in that period.

MOU_REG is MOU calculated with regard to the registered subscriber base.

SAC (Average Acquisition Cost Per User), a non-U.S. GAAP financial measure, is calculated as dealers’ commissions (for sales and bonus for exclusivity^*), advertising expenses and handset subsidies for the relevant period divided by the number of new subscribers added during the relevant period. Reconciliation of SAC to selling, general and administrative expenses, the most directly comparable U.S. GAAP financial measure, is presented below in the tables section. The Company believes that SAC in growing markets provides useful information to investors because it is an indicator of the performance of the Company’s business operations and assists management in budgeting. The Company also believes that SAC assists management in quantifying the incremental costs to acquire a new subscriber. SAC should not be viewed in isolation or as an alternative to other figures reported under U.S. GAAP.

Market share of subscribers for each relevant area is calculated by dividing the estimated number of our subscribers in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan and Armenia, respectively, by the total estimated number of subscribers in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan and Armenia, respectively.

^*)

Dealers’ bonus for exclusivity which we counted prior to the fourth quarter of 2006 as a part of general and administrative expenses is now included in the dealers’ commission expense. Historical numbers including SAC were recalculated accordingly.

Attachment B: VimpelCom financial statements

Open Joint Stock Company “Vimpel-Communications”

Condensed Consolidated Statements of Operations


	Three months ended December 31,						Years ended December 31,
	2007			2006			2007			2006
	*(Unaudited)*
	*(In thousands of US dollars , except per share (ADS) amounts)*
Operating revenues:
Service revenues and connection fees	$	2,006,440		$	1,447,054		$	7,161,833		$	4,847,661
Sales of handsets and accessories		2,307			4,252			6,519			19,265
Other revenues		2,504			657			6,528			2,931

Total operating revenues		2,011,251			1,451,963			7,174,880			4,869,857

Revenue based tax		(1,305	)		(551	)		(3,782	)		(1,879	)

Net operating revenues		2,009,946			1,451,412			7,171,098			4,867,978

Operating expenses:

Service costs (exclusive of depreciation shown separately below)		365,653			267,736			1,309,287			872,388
Cost of handsets and accessories sold		1,592			4,223			5,827			18,344
Selling general and administrative expenses		715,892			478,423			2,206,322			1,503,615
Depreciation		331,725			265,086			1,171,834			874,618
Amortization		56,040			50,095			218,719			179,846
Provision for doubtful accounts		8,399			11,205			52,919			21,848

Total operating expenses		1,479,301			1,076,768			4,964,908			3,470,659

Operating income		530,645			374,644			2,206,190			1,397,319

Other income and expenses:
Interest income		11,554			4,436			33,021			15,471
Interest expense		(50,274	)		(46,602	)		(194,839	)		(186,404	)
Net foreign exchange gain (loss)		21,614			10,667			72,955			24,596
Other income (expenses)		31,377			(22,567	)		3,029			(38,844	)

Total other income and expenses		14,271			(54,066	)		(85,834	)		(185,181	)

Income before income taxes and minority interest		544,916			320,578			2,120,356			1,212,138

Income taxes expense		159,225			127,831			593,928			390,663
Minority interest in net earnings of subsidiaries		17,583			(5,203	)		63,722			8,104

Income before cumulative effect of change in accounting principle		368,108			197,950			1,462,706			813,371

Cumulative effect of changes in accounting principles		—			—			—			(1,882	)

Net income		368,108			197,950			1,462,706			811,489

Net income per common share	$	7.25		$	3.89		$	28.78		$	15.94
Net income per ADS equivalent	$	0.36		$	0.19		$	1.44		$	0.80

Weighted average common shares outstanding (thousands)		50,777			50,859			50,818			50,911

Open Joint Stock Company “Vimpel–Communications”

Condensed Consolidated Balance Sheets


	December 31, 2007		December 31, 2006
	(In thousands of US dollars)
Assets
Current assets:
Cash and cash equivalents	$	1,003,711	$	344,494
Trade accounts receivable		281,396		311,991
Other current assets		441,810		468,071

Total current assets		1,726,917		1,124,556

Non–current assets
Property and equipment, net		5,497,819		4,615,675
Telecommunication licenses and allocation of frequencies, net		915,211		924,809
Other intangible assets, net		1,302,318		1,033,140
Other assets		1,126,619		738,366

Total non–current assets		8,841,967		7,311,990

Total assets	$	10,568,884	$	8,436,546

Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	700,589	$	671,953
Customer advances and deposits		423,611		314,375
Bank and other loans, current portion		526,512		424,103
Accrued liabilities		348,989		201,545

Total current liabilities		1,999,701		1,611,976

Deferred income taxes		576,276		528,025
Bank and other loans, less current portion		2,240,097		2,065,329
Accrued liabilities		52,614		30,447

Minority Interest		288,410		257,859

Shareholders’ equity		5,411,786		3,942,910

Total liabilities and shareholders’ equity	$	10,568,884	$	8,436,546

Open Joint Stock Company “Vimpel–Communications”

Condensed Consolidated Statements of Cash Flows


	Years ended December 31,
	2007			2006
	(In thousands of US dollars)
Net cash provided by operating activities	$	3,037,690		$	1,971,268

Proceeds from bank and other loans		666,348			925,183
Sale of treasury stock		39,787			12,855

Payments of fees in respect of bank loans		(14,380	)		(48,175	)
Repayment of rouble denominated bonds		—			(110,783	)
Repayment of bank and other loans		(472,545	)		(447,663	)
Payment of dividends		(331,885	)		—
Purchase of treasury stock		(81,069	)		(38,535	)

Net cash provided by financing activities		(193,744	)		292,882

Short-term investments		(42,356	)		—
Purchase of property and equipment		(1,238,305	)		(1,265,549	)
Acquisition of subsidiaries, net of cash		(301,355	)		(679,765	)
Purchase of intangible assets		(73,814	)		(31,408	)
Escrow cash deposit		(200,170	)		—
Purchase of other assets		(378,552	)		(310,269	)

Net cash used in investing activities		(2,234,552	)		(2,286,991	)

Effect of exchange rate changes on cash		49,823			3,689

Net increase (decrease) in cash		659,217			(19,152	)
Cash and cash equivalents at beginning of period		344,494			363,646

Cash and cash equivalents at end of period		1,003,711			344,494

Supplemental cash flow information

Cash paid during the period:
Income tax	$	601,939		$	354,566
Interest		201,259			188,991

Non–cash activities:
Equipment acquired under financing and capital lease agreements		48,514			23,458
Accounts payable for equipment and other long–lived assets		417,478			249,020
Offset of 2009 Tendered Notes		—			232,766
Non–cash discounts from suppliers of equipment		(5,441	)		14,542
Acquisitions:
Fair value of assets acquired		84,125			671,997
Fair value of minority interest acquired		41,636			—
Difference between the amount paid and the fair value of net assets acquired		182,034			268,315
Cash paid for the capital stock		(291,928	)		(735,500	)

Liabilities assumed	$	15,867		$	204,812

Attachment C. Reconciliation tables (Unaudited)

CONSOLIDATED

Reconciliation of OIBDA

(In thousands of US dollars)


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA	918,410		689,825		1,015,158		3,596,743		2,451,783
Depreciation	(331,725	)	(265,086	)	(285,572	)	(1,171,834	)	(874,618	)
Amortization	(56,040	)	(50,095	)	(55,583	)	(218,719	)	(179,846	)
Operating income	530,645		374,644		674,003		2,206,190		1,397,319

Reconciliation of OIBDA Margin


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA margin	45.7	%	47.5	%	51.9	%	50.2	%	50.4	%
Less: Depreciation as a percentage of net operating revenue	(16.5	)%	(18.3	)%	(14.6	)%	(16.3	)%	(18.0	)%
Less: Amortization as a percentage of net operating revenue	(2.8	)%	(3.4	)%	(2.8	)%	(3.1	)%	(3.7	)%
Operating income as a percentage of net operating revenue	26.4	%	25.8	%	34.5	%	30.8	%	28.7	%

RUSSIA

Reconciliation of OIBDA in Russia

(In thousands of US dollars)


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA	773,338		645,144		871,163		3,100,804		2,303,539
Depreciation	(269,036	)	(229,544	)	(249,781	)	(991,886	)	(796,137	)
Amortization	(30,602	)	(27,091	)	(29,470	)	(117,085	)	(104,155	)
Operating income	473,700		388,509		591,912		1,991,833		1,403,247

Reconciliation of OIBDA Margin in Russia


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA margin	45.4	%	50.3	%	52.7	%	50.9	%	52.3	%
Less: Depreciation as a percentage of net operating revenue	(15.8	)%	(17.9	)%	(15.1	)%	(16.3	)%	(18.0	)%
Less: Amortization as a percentage of net operating revenue	(1.8	)%	(2.1	)%	(1.8	)%	(1.9	)%	(2.4	)%
Operating income as a percentage of net operating revenue	27.8	%	30.3	%	35.8	%	32.7	%	31.9	%

Reconciliation of SAC in Russia

(In thousands of US dollars, except for SAC and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2007	Dec 31, 2006	Sept 30, 2007	Dec 31, 2007	Dec 31, 2006
Selling, general and administrative expenses	632,640	406,642	477,277	1,903,411	1,330,806
Less: General and administrative expenses	481,871	298,222	351,028	1,423,662	949,326
Sales and marketing expenses, including	150,769	108,420	126,249	479,749	381,480
advertising & marketing expenses	80,899	59,892	59,478	241,300	190,791
dealers’ commission expense	69,870	48,528	66,771	238,449	190,689
New gross subscribers,’000	4,748	4,971	5,100	18,850	21,303
Subscriber Acquisition Cost (SAC) (US$)	31.8	21.8	24.8	25.5	17.9

Reconciliation of ARPU in Russia

(In thousands of US dollars, except for ARPU and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2007	Dec 31, 2006	Sept 30, 2007	Dec 31, 2007	Dec 31, 2006
Service revenue and connection fees	1,697,465	1,276,276	1,650,358	6,082,473	4,379,534
Less: Connection fees	386	308	184	904	1,744
Less: Revenue from rent of fiber-optic channels	1,546	433	1,003	4,496	1,846
Service revenue used to calculate ARPU	1,695,533	1,275,535	1,649,171	6,077,073	4,375,944
Average number of registered subscribers, ‘000	50,883	47,541	49,926	49,457	46,142
ARPU _REG(US$)	11.1	8.9	11.0	10.2	7.9
Average number of active subscribers,’000	41,881	39,102	40,933	40,299	37,996
ARPU (US$)	13.5	10.9	13.4	12.6	9.6

KAZAKHSTAN

Reconciliation of OIBDA in Kazakhstan

(In thousands of US dollars)


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA	92,171		35,744		88,127		322,623		140,580
Depreciation	(20,139	)	(21,142	)	(14,983	)	(68,477	)	(56,158	)
Amortization	(9,673	)	(9,134	)	(9,091	)	(37,337	)	(36,792	)
Operating income	62,359		5,468		64,053		216,809		47,630

Reconciliation of OIBDA Margin in Kazakhstan


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA margin	52.8	%	31.6	%	52.7	%	52.8	%	40.0	%
Less: Depreciation as a percentage of net operating revenue	(11.6	)%	(18.7	)%	(9.0	)%	(11.2	)%	(16.0	)%
Less: Amortization as a percentage of net operating revenue	(5.5	)%	(8.1	)%	(5.4	)%	(6.1	)%	(10.5	)%
Operating income as a percentage of net operating revenue	35.7	%	4.8	%	38.3	%	35.5	%	13.5	%

Reconciliation of SAC in Kazakhstan

(In thousands of US dollars, except for SAC and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2007	Dec 31, 2006	Sept 30, 2007	Dec 31, 2007	Dec 31, 2006
Selling, general and administrative expenses	33,787	40,200	32,650	123,584	96,451
Less: General and administrative expenses	21,034	33,080	23,419	86,405	74,054
Sales and marketing expenses, including	12,753	7,120	9,231	37,179	22,397
advertising & marketing expenses	5,678	4,419	5,093	19,584	11,791
dealers’ commission expense	7,075	2,701	4,138	17,595	10,606
New gross subscribers,’000	783	809	919	3,226	2,724
Subscriber Acquisition Cost (SAC) (US$)	16.3	8.8	10.0	11.5	8.2

Reconciliation of ARPU in Kazakhstan

(In thousands of US dollars, except for ARPU and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2007	Dec 31, 2006	Sept 30, 2007	Dec 31, 2007	Dec 31, 2006
Service revenue and connection fees	174,624	112,963	167,122	610,471	351,854
Less: Connection fees	0	0	0	0	0
Less: Revenue from rent of fiber-optic channels	0	0	0	0	0
Service revenue used to calculate ARPU	174,624	112,963	167,122	610,471	351,854
Average number of registered subscribers, ‘000	5,716	3,498	5,120	4,880	2,893
ARPU _REG (US$)	10.2	10.8	10.9	10.4	10.1
Average number of active subscribers,’000	4,468	2,728	4,107	3,875	2,332
ARPU (US$)	13.0	13.8	13.6	13.1	12.6

UKRAINE

Reconciliation of OIBDA in Ukraine

(In thousands of US dollars)


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA	3,643		(10,546	)	6,455		508		(34,690	)
Depreciation	(13,036	)	(4,325	)	(4,417	)	(24,986	)	(6,478	)
Amortization	(3,096	)	(5,722	)	(5,210	)	(18,749	)	(20,555	)
Operating income	(12,489	)	(20,593	)	(3,172	)	(43,227	)	(61,723	)

Reconciliation of OIBDA Margin in Ukraine


	Three months ended					Year Ended
	Dec 31, 2007		Dec 31, 2006	Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA margin	10.5	%	n/a	17.5	%	0.5	%	n/a
Less: Depreciation as a percentage of net operating revenue	(37.7	)%	n/a	(12.0	)%	(22.4	)%	n/a
Less: Amortization as a percentage of net operating revenue	(9.0	)%	n/a	(14.1	)%	(16.8	)%	n/a
Operating income as a percentage of net operating revenue	(36.2	)%	n/a	(8.6	)%	(38.7	)%	n/a

Reconciliation of SAC in Ukraine

(In thousands of US dollars, except for SAC and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2007	Dec 31, 2006	Sept 30, 2007	Dec 31, 2007	Dec 31, 2006
Selling, general and administrative expenses	17,547	17,624	16,465	66,519	50,703
Less: General and administrative expenses	13,588	11,346	12,454	48,718	33,235
Sales and marketing expenses, including	3,959	6,278	4,011	17,801	17,468
advertising & marketing expenses	3,493	5,144	2,753	14,128	14,949
dealers’ commission expense	466	1,134	1,258	3,673	2,519
New gross subscribers,’000	480	948	729	2,290	1,752
Subscriber Acquisition Cost (SAC) (US$)	8.2	6.6	5.5	7.8	10.0

Reconciliation of ARPU in Ukraine

(In thousands of US dollars, except for ARPU and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2007	Dec 31, 2006	Sept 30, 2007	Dec 31, 2007	Dec 31, 2006
Service revenue and connection fees	34,095	14,652	36,523	110,212	35,024
Less: Connection fees	0	5	112	153	8
Less: Revenue from rent of fiber-optic channels	0	0	0	0	0
Service revenue used to calculate ARPU	34,095	14,647	36,411	110,059	35,016
Average number of registered subscribers, ‘000	2,721	1,425	2,668	2,501	714
ARPU _REG (US$)	4.2	3.4	4.5	3.7	4.1
Average number of active subscribers,’000	2,037	1,170	2,081	1,937	582
ARPU (US$)	5.6	4.2	5.8	4.7	5.0

UZBEKISTAN

Reconciliation of OIBDA in Uzbekistan

(In thousands of US dollars)


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA	17,756		7,815		16,923		54,732		32,079
Depreciation	(5,088	)	(2,720	)	(4,011	)	(15,508	)	(8,376	)
Amortization	(3,480	)	(3,378	)	(3,438	)	(13,715	)	(11,843	)
Operating income	9,188		1,717		9,474		25,509		11,860

Reconciliation of OIBDA Margin in Uzbekistan


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA margin	48.6	%	49.1	%	56.1	%	50.6	%	57.7	%
Less: Depreciation as a percentage of net operating revenue	(14.0	)%	(17.1	)%	(13.3	)%	(14.3	)%	(15.1	)%
Less: Amortization as a percentage of net operating revenue	(9.5	)%	(21.2	)%	(11.4	)%	(12.7	)%	(21.3	)%
Operating income as a percentage of net operating revenue	25.1	%	10.8	%	31.4	%	23.6	%	21.3	%

Reconciliation of SAC in Uzbekistan

(In thousands of US dollars, except for SAC and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2007	Dec 31, 2006	Sept 30, 2007	Dec 31, 2007	Dec 31, 2006
Selling, general and administrative expenses	13,053	5,933	8,668	36,517	16,451
Less: General and administrative expenses	9,501	4,287	6,003	26,711	12,369
Sales and marketing expenses, including	3,552	1,646	2,665	9,806	4,081
advertising & marketing expenses	1,475	767	1,112	4,142	1,843
dealers’ commission expense	2,077	879	1,553	5,664	2,238
New gross subscribers,’000	764	284	603	2,259	569
Subscriber Acquisition Cost (SAC) (US$)	4.6	5.8	4.4	4.3	7.2

Reconciliation of ARPU in Uzbekistan

(In thousands of US dollars, except for ARPU and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2007	Dec 31, 2006	Sept 30, 2007	Dec 31, 2007	Dec 31, 2006
Service revenue and connection fees	37,769	16,446	31,159	111,716	57,439
Less: Connection fees	0	0	0	0	0
Less: Revenue from rent of fiber-optic channels	0	0	0	0	0
Service revenue used to calculate ARPU	37,769	16,446	31,159	111,716	57,439
Average number of registered subscribers, ‘000	1,904	625	1,408	1,360	461
ARPU _REG (US$)	6.6	8.8	7.4	6.8	10.4
Average number of active subscribers,’000	1,847	558	1,372	1,315	402
ARPU (US$)	6.8	9.8	7.6	7.1	11.9

TAJIKISTAN

Reconciliation of OIBDA in Tajikistan

(In thousands of US dollars)


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA	1,366		(1,112	)	1,646		2,763		(2,447	)
Depreciation	(1,472	)	(204	)	(948	)	(3,352	)	(318	)
Amortization	(168	)	(69	)	(158	)	(643	)	(680	)
Operating income	(274	)	(1,385	)	540		(1,232	)	(3,445	)

Reconciliation of OIBDA Margin in Tajikistan


	Three months ended					Year Ended
	Dec 31, 2007		Dec 31, 2006	Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA margin	16.9	%	n/a	21.5	%	11.6	%	n/a
Less: Depreciation as a percentage of net operating revenue	(18.2	)%	n/a	(12.3	)%	(14.1	)%	n/a
Less: Amortization as a percentage of net operating revenue	(2.1	)%	n/a	(2.1	)%	(2.7	)%	n/a
Operating income as a percentage of net operating revenue	(3.4	)%	n/a	7.1	%	(5.2	)%	n/a

Reconciliation of SAC in Tajikistan

(In thousands of US dollars, except for SAC and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2007	Dec 31, 2006	Sept 30, 2007	Dec 31, 2007	Dec 31, 2006
Selling, general and administrative expenses	3,547	1,485	3,515	12,074	2,968
Less: General and administrative expenses	2,309	1,325	2,470	8,022	2,741
Sales and marketing expenses, including	1,238	160	1,045	4,052	227
advertising & marketing expenses	467	91	553	1,990	158
dealers’ commission expense	771	69	492	2,062	69
New gross subscribers,’000	95.3	65.0	81.5	323.0	69.0
Subscriber Acquisition Cost (SAC) (US$)	13.0	2.5	12.8	12.5	3.3

Reconciliation of ARPU in Tajikistan

(In thousands of US dollars, except for ARPU and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2007	Dec 31, 2006	Sept 30, 2007	Dec 31, 2007	Dec 31, 2006
Service revenue and connection fees	8,139	840	7,675	23,927	1,218
Less: Connection fees	0	0	0	0	0
Less: Revenue from rent of fiber-optic channels	0	0	0	0	0
Service revenue used to calculate ARPU	8,139	840	7,675	23,927	1,218
Average number of registered subscribers, ‘000	338	36	256	222	23
ARPU _REG (US$)	8.0	7.8	10.0	9.0	4.4
Average number of active subscribers,’000	302	31	236	205	15
ARPU (US$)	9.0	9.0	10.8	9.7	6.8

ARMENIA

Reconciliation of OIBDA in Armenia

(In thousands of US dollars)


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA	32,476		13,290		32,888		122,743		13,290
Depreciation	(21,840	)	(7,148	)	(10,671	)	(65,182	)	(7,148	)
Amortization	(7,748	)	(3,928	)	(6,951	)	(26,440	)	(3,928	)
Operating income	2,888		2,214		15,266		31,121		2,214

Reconciliation of OIBDA Margin in Armenia


	Three months ended						Year Ended
	Dec 31, 2007		Dec 31, 2006		Sept 30, 2007		Dec 31, 2007		Dec 31, 2006
OIBDA margin	54.3	%	48.6	%	51.9	%	52.1	%	48.6	%
Less: Depreciation as a percentage of net operating revenue	(36.5	)%	(26.1	)%	(16.8	)%	(27.7	)%	(26.1	)%
Less: Amortization as a percentage of net operating revenue	(13.0	)%	(14.4	)%	(11.0	)%	(11.2	)%	(14.4	)%
Operating income as a percentage of net operating revenue	4.8	%	8.1	%	24.1	%	13.2	%	8.1	%

Reconciliation of mobile ARPU in Armenia

(In thousands of US dollars, except for ARPU and subscriber amounts)


	Three months ended			Year Ended
	Dec 31, 2007	Dec 31, 2006	Sept 30, 2007	Dec 31, 2007	Dec 31, 2006
Service revenue and connection fees	23,290	10,451	25,623	91,970	10,451
Less: Connection fees	66	0	64	279	0
Less: Revenue from rent of fiber-optic channels	0	0	0	0	0
Service revenue used to calculate ARPU	23,224	10,451	25,559	91,691	10,451
Average number of registered subscribers, ‘000	478	445	528	490	445
ARPU _REG (US$)	16.2	15.7	16.1	15.6	15.7
Average number of active subscribers,’000	444	409	483	457	409
ARPU (US$)	17.4	17.0	17.6	16.7	17.0

Reconciliation of fixed ARPU in Armenia

(In thousands of US dollars, except for ARPU and subscriber amounts)


	Three months ended				Year Ended
	Dec 31, 2007		Dec 31, 2006	Sept 30, 2007	Dec 31, 2007		Dec 31, 2006
Service revenue and connection fees	36,299		16,922	37,551	143,363		16,922
Less: Connection fees	(271	)	0	88	(128	)	0
Service revenue used to calculate ARPU	36,570		16,922	37,463	143,491		16,922
Average number of subscribers,’000	622		609	611	612		609
Average revenue per subscriber per month (US$)	19.6		18.5	20.4	19.5		18.5

Attachment D. Additional reference data

Operating and Financial Indicators


CONSOLIDATED	Three months							Year
CONSOLIDATED	4Q2007	4Q2006	Change, 4Q07/4Q06		3Q2007	Change, 4Q07/3Q07		2007	2006	Change 2007/2006
Registered mobile subscribers	63,340,040	55,135,700	14.9	%	60,990,302	3.9	%	63,340,040	55,135,700	14.9	%
Registered fixed subscribers	629,273	608,500	3.4	%	616,175	2.1	%	629,273	608,500	3.4	%


RUSSIA	Three months							Year
RUSSIA	4Q2007	4Q2006	Change, 4Q07/4Q06		3Q2007	Change, 4Q07/3Q07		2007	2006	Change 2007/2006
Registered subscribers	51,622,117	48,141,200	7.2	%	50,296,378	2.6	%	51,622,117	48,141,200	7.2	%
ARPU_REG, (US$)	11.1	8.9	24.7	%	11.0	0.9	%	10.2	7.9	29.1	%
MOU_REG, (min)	168.0	129.8	29.4	%	171.3	-1.9	%	156.5	120.1	30.3	%


KAZAKHSTAN	Three months							Year
KAZAKHSTAN	4Q2007	4Q2006	Change, 4Q07/4Q06		3Q2007	Change, 4Q07/3Q07		2007	2006	Change 2007/2006
Registered subscribers	5,905,511	3,826,500	54.3	%	5,456,505	8.2	%	5,905,511	3,826,500	54.3	%
ARPU_REG, (US$)	10.2	10.8	-5.6	%	10.9	-6.4	%	10.4	10.1	3.0	%
MOU_REG, (min)	77.3	60.8	27.1	%	90.4	-14.5	%	75.1	56.8	32.2	%


UKRAINE	Three months							Year
UKRAINE	4Q2007	4Q2006	Change, 4Q07/4Q06		3Q2007	Change, 4Q07/3Q07		2007	2006	Change 2007/2006
Registered subscribers	2,646,647	1,876,100	41.1	%	2,737,000	-3.3	%	2,646,647	1,876,100	41.1	%
ARPU_REG, (US$)	4.2	3.4	23.5	%	4.5	-6.7	%	3.7	4.1	-9.8	%
MOU_REG, (min)	137.1	122.4	12.0	%	131.2	4.5	%	126.3	121.8	3.7	%


UZBEKISTAN	Three months							Year
UZBEKISTAN	4Q2007	4Q2006	Change, 4Q07/4Q06		3Q2007	Change, 4Q07/3Q07		2007	2006	Change 2007/2006
Registered subscribers	2,197,730	766,500	186.7	%	1,631,673	34.7	%	2,197,730	766,500	186.7	%
ARPU_REG, (US$)	6.6	8.8	-25.0	%	7.4	-10.8	%	6.8	10.4	-34.6	%
MOU_REG, (min)	274.9	240.1	14.5	%	282.4	-2.7	%	264.9	279.5	-5.2	%


TAJIKISTAN	Three months							Year
TAJIKISTAN	4Q2007	4Q2006	Change, 4Q07/4Q06		3Q2007	Change, 4Q07/3Q07		2007	2006	Change 2007/2006
Registered subscribers	386,460	73,400	426.5	%	295,049	31.0	%	386,460	73,400	426.5	%
ARPU_REG, (US$)	8.0	7.8	2.6	%	10.0	-20.0	%	9.0	4.4	104.5	%
MOU_REG, (min)	193.0	160.8	20.0	%	212.7	-9.3	%	203.9	77.4	163.4	%


ARMENIA	Three months							Year
ARMENIA	4Q2007	4Q2006	Change, 4Q07/4Q06		3Q2007	Change, 4Q07/3Q07		2007	2006	Change 2007/2006
Registered mobile subscribers	487,170	452,000	7.8	%	538,411	-9.5	%	487,170	452,000	7.8	%
ARPU_REG, (US$)	16.2	15.7	3.2	%	16.1	0.6	%	15.6	15.7	-0.6	%
MOU_REG, (min)	159.4	163.7	-2.6	%	165.4	-3.6	%	158.4	163.7	-3.2	%

VimpelCom

Presentation of 4Q and Full Year 2007

Financial

and

Operating Results

March 12, 2008

Disclaimer

This presentation 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, in

part,

the

Company’s

strategy

and

development

plans

Russia

and

the

CIS.

The

forward-looking

statements are based on management's best assessment of the Company's 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 competition,

governmental regulation of the telecommunications industries in Russia and the CIS, general political

uncertainties in Russia and the CIS and general economic developments in Russia and the CIS, continued

volatility in the world economy, challenges to 3G and Far East tenders and/or litigation with third parties.

The actual outcome may also differ materially if the Company is unable to obtain all necessary corporate

approvals relating to its business (including approval of funding and specific transactions), if the Company is

unable to successfully integrate newly-acquired businesses, including Golden Telecom, and other factors.

There can be no assurance that these risks and uncertainties will not have a material adverse effect on the

Company, that the Company will be able to grow or that it will be successful in executing its strategy and

development plans. 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, 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 release, or to make corrections to reflect future events

or developments.

Agenda

Q&A Session

Operational Overview

Financial Overview

Welcome Remarks

will be joined by:

Nikolay

Pryanishnikov,

Executive VP, General Director, Russia

Kent McNeley, CMO

Jean-Pierre Vandromme,

CEO of Golden Telecom

Alexander Izosimov, CEO

Elena Shmatova, CFO

Alexander Izosimov, CEO

2007 Financial Highlights

Net Revenues, $ mln

Net Income, $ mln

OIBDA, $ mln

OIBDA Margin

+47.3%

1,330

2,113

3,211

4,868

7,171

2003

2004

2005

2006

2007

+46.7%

613

1,027

1,571

2,452

3,597

2003

2004

2005

2006

2007

50.2%

50.4%

48.9%

48.6%

46.1%

2003

2004

2005

2006

2007

+80.2%

1,463

811

615

350

229

2003

2004

2005

2006

2007

Quarterly Financial Dynamics

Net Revenues, $ mln

Net Income, $ mln

OIBDA, $ mln

OIBDA Margin

+38.5%

1,359

1,451

1,488

1,717

1,956

2,010

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

+86.0%

368

458

359

277

198

268

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

+33.1%

918

1,015

897

766

690

718

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

52.8%

47.5%

51.5%

52.2%

51.9%

45.7%

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

Stock Price Based Compensation Plans

Accruals and ADS Price

15,1

21,3

40,5

24,2

118,7

27,8

6,8

3,2

8,60

9,16

12,12

15,79

18,97

21,07

41,60

27,04

100

120

140

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407

Accruals, (US$ M)

ADS price, ($)

Continuing Increase in Free Cash Flow

804

3,038

1,971

1,293

-1,512

-1,773

-1,635

-1,242

-438

-342

1,265

459

2004

2005

2006

2007

Operating Cash Flow, $ mln

CAPEX, $ mln

Free Cash Flow, $ mln

Strong Balance Sheet

* In cases when OIBDA is part of financial ratios it is deemed to be

calculated in accordance with the reconciliation tables herein

($ mln)

Dec 31,'07

Dec 31,'06

Dec 31,'05

Cash and Cash Equivalents

1,004

344

364

Total Assets

10,569

8,437

6,307

Total Debt

2,767

2,489

1,998

-Short-term

527

424

421

-Long-term

2,240

2,065

1,577

Shareholders' Equity

5,412

3,943

2,741

LTM OIBDA*

3,597

2,452

1,571

LTMDepreciation

and

amortization

1,391

1,055

593

LTMOperating

Income

2,206

1,397

978

LTM Interest

195

186

147

Debt/Assets

0.26

0.30

0.32

Net Debt

1,763

2,145

1,634

10.69

18.45

13.18

0.73

0.63

0.51

0.77

1.27

1.02

5.00

11.00

17.00

23.00

29.00

Dec 31, '05

Dec 31, '06

Dec 31, '07

-0.60

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

OIBDA LTM/Interest LTM

Debt/Equity

Debt/OIBDA LTM

Operating Highlights: Russia

MOU, min

ARPU, US$

Active Subscriber Base, mln

Subscriber Market Share

)

Source: AC&M Consulting, based on registered subscriber numbers

38.8

39.8

38.6

41.8

42.2

40.1

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

13.5

13.4

12.3

10.9

10.6

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

152

158

161

193

209

204

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

32%

31%

30%

33%

34%

19%

20%

21%

16%

15%

16%

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

VimpelCom

MTS

MegaFon

Others

Financial Highlights: Russia

Net Revenues, $ mln

OIBDA, $ mln

CAPEX, $ mln

CAPEX / Revenue, LTM

+32.8%

1,701

1,652

1,459

1,278

1,281

1,228

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

+19.9%

773

871

780

676

645

666

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

467

217

189

200

380

226

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

17.6%

17.4%

19.0%

22.9%

23.9%

32.5%

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

Sources of Year-on-Year Growth

Net Revenue Growth, $ mln

OIBDA Growth, $ mln

Subscriber

Growth, ‘000

7,171

4,868

468

613

1,081

6,090

4,400

1,690

2006

Russia

CIS

2007

3,597

2,452

2,304

148

348

496

797

3,101

2006

Russia

CIS

2007

51,740

45,548

39,783

5,765

9,519

42,221

2,438

3,754

2006

Russia

CIS

2007

Russia

CIS

Operating Highlights: Kazakhstan

ARPU,

US$

MOU,

min

Active Subscriber Base, mln

Subscriber Market Share

)

Source: AC&M Consulting, based on registered subscriber numbers

3.5

3.9

4.6

3.1

2.6

4.3

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

13.0

13.6

14.4

13.8

12.2

13.6

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

113

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

49%

50%

47%

46%

49%

45%

46%

48%

47%

46%

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

VIP

K'Cell

Others

Financial Highlights: Kazakhstan

Net Revenues, $ mln

OIBDA, $ mln

CAPEX, $

mln

CAPEX / Revenue, LTM

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

64.2%

50.2%

41.2%

37.3%

30.5%

35.2%

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

+157.9%

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

+54.7%

174

166

149

119

112

104

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

Operating Highlights: Ukraine

Active Subscriber Base, mln

ARPU

(US$)

Subscriber Market Share

MOU,

min

)

Source: AC&M Consulting , based on registered subscriber numbers

0.8

1.5

2.0

1.8

1.9

2.2

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

6.7

4.2

3.0

4.2

5.8

5.6

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

168

160

138

149

183

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

43%

44%

43%

42%

43%

41%

40%

39%

36%

37%

16%

14%

12%

11%

12%

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

VIP

Kyivstar

UMC (MTS)

Astelit

Others

Financial Highlights: Ukraine

Net Revenues, $ mln

OIBDA, $ mln

CAPEX, $

mln

CAPEX / Revenue, LTM

-6.1

-10.5

-6.5

-3.1

6.5

3.6

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

682%

599%

461%

326%

176%

148%

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

+114.5%

11.5

14.3

15.7

22.7

36.3

30.7

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

Operating Highlights: Uzbekistan

Active Subscriber Base, mln

ARPU (US$)

MOU,

min

Subscriber Market Share

)

Source: AC&M Consulting , based on registered subscriber numbers

0.5

0.7

1.2

1.1

2.1

1.6

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

11.8

9.8

6.8

6.7

7.2

7.6

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

283

305

269

242

266

290

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

33%

37%

36%

25%

27%

33%

52%

48%

50%

51%

54%

13%

14%

11%

12%

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

VIP

Uzdunrobita

Coscom

Other

Financial Highlights: Uzbekistan

Net Revenues, $ mln

OIBDA, $ mln

CAPEX,

$ mln

CAPEX / Revenue, LTM

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

86%

63%

81%

82%

85%

82%

126%

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

* In 4Q 2007 $43 million was paid for 3G license and

numbering capacity

** Organic CAPEX/Revenue ratio excluding payments for

numbering capacity and 3G licenses

+130.2%

15.7

15.8

18.0

23.1

29.9

36.4

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

+127.2%

9.5

7.8

8.7

11.4

16.9

17.8

3Q 06

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

Operating and Financial Highlights: Armenia

* The 4Q 2006

data

represent the results of operations for

1.5 months since the date of acquisition by VimpelCom

Net Revenues, $ mln

ARPU,

US$

CAPEX,

$ mln

Active Subscriber Base, mln

0.6

0.4

0.6

0.4

0.5

4Q 06*

1Q 07

2Q 07

3Q 07

4Q 07

Fixed subscribers

Mobile active subscribers

17.4

17.6

17.3

14.5

17.0

18.5

18.8

19.3

20.4

19.6

4Q 06*

1Q 07

2Q 07

3Q 07

4Q 07

Mobile ARPU active base

Fixed ARPU

4Q 06*

1Q 07

2Q 07

3Q 07

4Q 07

54.0

58.3

63.3

59.4

27.4

19.8

37.6

36.3

16.9

34.2

35.2

25.7

23.1

10.5

23.1

4Q 06*

1Q 07

2Q 07

3Q 07

4Q 07

Fixed revenue

Mobile revenue

Operating and Financial Highlights:

Georgia and Tajikistan

Georgia

•

Operations launched at the end of Q1 and are still in a start-up phase

•

Almost tripled revenues and number of active subscribers in Q4 compared

to Q3

•

Focus on roll-out and distribution network development

Tajikistan

•

Revenues increased 10 times compared to Q4 2006

•

Number of active subscribers increased by almost 5 times versus year end

2006

•

Subscriber market share increased to 18% from 7% a year ago

Strategy Going Forward

Drive operations and investment efficiency

•

Re-balance focus from speed to efficiency and enhance cost transparency as markets mature

•

Avoid head-count growth in mature operations

•

Drive procurement excellence

•

Optimize CAPEX decisions at a granular level and continuously improve marketing spend efficiency

Build and sustain strong management capabilities

•

Offer an open and transparent, meritocracy-based environment

•

Use a global approach to hiring

•

Develop best-in-class individual development and coaching mechanisms

•

Ensure competitive, performance-based compensation packages

•

Grow ARPUs and customer loyalty

through pricing excellence and new

VAS

•

Strengthen corporate segment

•

Develop strong, situation-specific

value propositions in local markets

•

Explore consolidation opportunities

Extract maximum value in the

Russian business

•

Focus on subscriber growth

•

Leverage unified business platform

developed in Russia

•

Pursue acquisitions in remaining markets

Grow the business in the CIS

•

Opportunistically explore deals outside

of the CIS

•

Develop business in backbone

wholesale and residential broadband

•

Build new digital service businesses,

including media, mobile TV, payment

services, etc.

•

Explore new technologies and business

platforms

Capture attractive opportunities to

expand into new business areas

Golden Telecom: A Perfect Fit

Customer

focus

Product

focus

Geography

Consumer

Corporate

Mobile

voice

and data

Fixed voice

and data,

broadband,

wholesale

Russia,

CIS

Russia,

CIS

Infrastructure

Transport

network

Access

Bundling opportunities anticipated

Significant cost synergies and investment

savings expected

Introduce convergent products

Overlapping geographies allow for creation of

the leading pan-CIS integrated operator

Enhance VimpelCom operations in Ukraine

Scale synergies from combining networks

Enhance Golden Telecom’s wholesale

operations

Generate additional revenues from FTTB local

access network

Enable customer growth in both corporate and

residential sectors

Create cross-selling opportunities

Summary

Continued strong growth of business and solid

financial performance

•

ARPU expansion trend in Russia continues, driven by

increase in usage

•

Increased scope and profitability of operations in the

CIS countries outside of Russia

•

Strategic evolution towards a leading integrated

telecom operator

Questions and Answers

If you would like to ask a question, please press the star key followed by

the digit one on your touch-tone telephone.

Due

time

constraints,

ask

that

you

limit

yourselves

one

question

and one follow-up question.

If you are using a speakerphone, please make sure your mute button is

turned off to allow your signal to reach the equipment.

----------

Thank you for your interest in VimpelCom

For more information please visit www.vimpelcom.com or contact

Investor_Relations@vimpelcom.com

APPENDICES

Moldova

Population: 3.9 mln.

Penetration 44%

GDP* 2,200

Moldova

Population: 3.9 mln.

Penetration 44%

GDP* 2,200

Armenia

Population: 3.2 mln.

Acquired: Nov. 2006

Penetration 59%

GDP* 5,700

Armenia

Population: 3.2 mln.

Acquired: Nov. 2006

Penetration 59%

GDP* 5,700

Russia and CIS License Footprint

2G & 3G licenses

No VIP license

Ukraine

Population: 46.5 mln.

Acquired: Nov. 2005

Penetration 120%

GDP* 6,900

Ukraine

Population: 46.5 mln.

Acquired: Nov. 2005

Penetration 120%

GDP* 6,900

Georgia

Population: 4.5 mln.

Acquired: Jul. 2006

Penetration 56%

GDP* 4,200

Georgia

Population: 4.5 mln.

Acquired: Jul. 2006

Penetration 56%

GDP* 4,200

Azerbaijan

Population: 8.5 mln.

Penetration 51%

GDP* 9,000

Azerbaijan

Population: 8.5 mln.

Penetration 51%

GDP* 9,000

Turkmenistan

Population: 6.7 mln.

Penetration 6%

GDP* 9,200

Turkmenistan

Population: 6.7 mln.

Penetration 6%

GDP* 9,200

Uzbekistan

Population: 26.7 mln.

Acquired: Jan. 2006

Penetration 22%

GDP* 2,200

Uzbekistan

Population: 26.7 mln.

Acquired: Jan. 2006

Penetration 22%

GDP* 2,200

Tajikistan

Population: 7.1 mln.

Acquired: Dec. 2005

Penetration 30%

GDP* 1,600

Tajikistan

Population: 7.1 mln.

Acquired: Dec. 2005

Penetration 30%

GDP* 1,600

Kyrgyzstan

Population: 5.2 mln.

Penetration 40%

GDP* 2,000

Kyrgyzstan

Population: 5.2 mln.

Penetration 40%

GDP* 2,000

Kazakhstan

Population: 15.4 mln.

Acquired: Sept. 2004

Penetration 83%

GDP* 11,100

Kazakhstan

Population: 15.4 mln.

Acquired: Sept. 2004

Penetration 83%

GDP* 11,100

*GDP (PPP), $ per capita

Sources:

GDP data by CIA World Factbook

Population data by CIS Statistics Committee

Number of mobile subscribers by AC&M-Consulting

Belarus

Population: 9.7 mln.

Penetration 73%

GDP* 10,200

Belarus

Population: 9.7 mln.

Penetration 73%

GDP* 10,200

Russia

Population: 142.2 mln.

Penetration 122%

GDP* 14,600

Russia

Population: 142.2 mln.

Penetration 122%

GDP* 14,600

Russia

2G license only

3G license only

FOREX Development

Currency

5.9%

14.1%

-3.9%

-1.4%

0.0%

5.5%

7.2%

Change from Q4 06

2.5%

6.1%

-1.0%

-0.4%

0.0%

2.0%

3.4%

Change from Q3 07

Average quarterly FX rate to US$

7.2%

GEL

Change from 2006

16.3%

AMD

-4.0%

UZS

-1.1%

TJS

0.0%

UAH

5.3%

KZT

6.8%

RUB

Closing

FX rate to US$

*) Source: Prime TASS, National Banks of the CIS countries

Reconciliation Tables of non-U.S. GAAP Measures to

Their

Most Directly Comparable U.S. GAAP Financial

Measures

Reconciliation of OIBDA and OIBDA Margin

(Unaudited)

($'000)

Dec 31,

2007

Sept 30,

2007

June 30,

2007

March 31,

2007

Dec 31,

2006

Sept 30,

2006

OIBDA

918,410

1,015,158

896,758

766,417

689,825

717,796

Depreciation

(331,725)

(285,572)

(285,365)

(269,172)

(265,086)

(243,593)

Amortization

(56,040)

(55,583)

(53,807)

(53,289)

(50,095)

(45,648)

Operating Income

530,645

674,003

557,586

443,956

374,644

428,555

OIBDA margin

45.7%

51.9%

52.2%

51.5%

47.5%

52.8%

Less: Depreciation as % of net

operating revenues

(16.5%)

(14.6%)

(16.6%)

(18.1%)

(18.3%)

(17.9%)

Less: Amortization as % of net

operating revenues

(2.8%)

(3.1%)

(3.6%)

(3.4%)

Operating Income

26.4%

34.5%

32.5%

29.8%

25.8%

31.5%

Reconciliation of OIBDA margin to operating income as percentage

net operating revenue

Three

months

ended

Reconciliation

OIBDA

operating

income

Reconciliation of OIBDA and OIBDA Margin

Annual (Unaudited)

($'000)

Dec 31,

2007

Dec 31,

2006

Dec 31,

2005

Dec 31,

2004

Dec 31,

2003

OIBDA

3,596,743

2,451,783

1,571,310

1,026,721

613,230

Impairment loss

(7,354)

Depreciation

(1,171,834)

(874,618)

(451,152)

(281,129)

(162,769)

Amortization

(218,719)

(179,846)

(142,126)

(64,072)

(34,064)

Operating Income

2,206,190

1,397,319

978,032

674,166

416,397

OIBDA margin

50.2%

50.4%

48.9%

48.6%

46.1%

Less: Impairment loss

(0.3%)

Less: Depreciation as % of net

operating revenues

(16.3%)

(18.0%)

(14.0%)

(13.4%)

(12.2%)

Less: Amortization as % of net

operating revenues

(3.1%)

(3.7%)

(4.4%)

(3.0%)

(2.6%)

Operating Income

30.8%

28.7%

30.5%

31.9%

31.3%

Reconciliation

OIBDA

margin

operating

income

percentage

net

operating

revenue

Reconciliation

OIBDA

operating

income

Year

Ended

Reconciliation of OIBDA and ARPU

in Russia (Unaudited)

($'000)

Dec 31,

2007

Sept 30,

2007

June 30,

2007

March 31,

2007

Dec 31,

2006

Sept 30,

2006

OIBDA

773,338

871,163

779,828

676,476

645,144

666,354

Depreciation

(269,036)

(249,781)

(240,387)

(232,681)

(229,544)

(221,973)

Amortization

(30,602)

(29,470)

(28,478)

(28,536)

(27,091)

(26,429)

Operating Income

473,700

591,912

510,963

415,259

388,509

417,952

Service revenue and

connection fees

1,697,465

1,650,358

1,457,896

1,276,754

1,276,276

1,223,681

Less: Connection fees

386

184

164

169

308

410

Less: Revenue from rent of

fiber-optic channels

1,546

1,003

983

964

433

760

Service revenue used to

calculate ARPU

1,695,533

1,649,171

1,456,749

1,275,621

1,275,535

1,222,511

Average number of active

subscribers ('000)

41,881

40,933

39,359

39,021

39,102

38,365

ARPU (US$)

13.5

13.4

12.3

10.9

10.6

Reconciliation of OIBDA to operating income

Reconciliation of ARPU to service revenue and connection fees

Three months ended

Reconciliation of OIBDA and ARPU

in Kazakhstan (Unaudited)

($'000)

Dec 31,

2007

Sept 30,

2007

June 30,

2007

March 31,

2007

Dec 31,

2006

Sept 30,

2006

OIBDA

92,171

88,127

80,317

62,007

35,744

49,023

Depreciation

(20,139)

(14,983)

(17,537)

(15,817)

(21,142)

(17,981)

Amortization

(9,673)

(9,091)

(9,419)

(9,154)

(9,134)

(9,550)

Operating Income

62,359

64,053

53,361

37,036

5,468

21,492

Service revenue and

connection fees

174,624

167,122

149,326

119,399

112,963

104,208

Less: Connection fees

Less: Revenue from rent of

fiber-optic channels

Service revenue used to

calculate ARPU

174,624

167,122

149,326

119,399

112,963

104,208

Average number of active

subscribers ('000)

4,468

4,107

3,655

3,271

2,728

2,412

ARPU (US$)

13.0

13.6

12.2

13.8

14.4

Reconciliation of ARPU to service revenue and connection fees

Three months ended

Reconciliation of OIBDA to operating income

Reconciliation of OIBDA and ARPU in

Ukraine (Unaudited)

($'000)

Dec 31,

2007

Sept 30,

2007

June 30,

2007

March 31,

2007

Dec 31,

2006

Sept 30,

2006

OIBDA

3,643

6,455

(3,073)

(6,518)

(10,546)

(6,072)

Depreciation

(13,036)

(4,417)

(4,330)

(3,203)

(4,325)

(1,218)

Amortization

(3,096)

(5,210)

(5,234)

(5,210)

(5,722)

(5,232)

Operating Income

(12,489)

(3,172)

(12,637)

(14,931)

(20,593)

(12,522)

Service revenue and

connection fees

34,095

36,523

23,436

16,158

14,652

12,320

Less: Connection fees

112

Less: Revenue from rent of fiber-

optic channels

Service revenue used to

calculate ARPU

34,095

36,411

23,400

16,153

14,647

12,317

Average number of active subscribers

('000)

2,037

2,081

1,847

1,781

1,170

611

ARPU (US$)

5.6

5.8

4.2

3.0

4.2

6.7

Three months ended

Reconciliation

OIBDA

operating

income

Reconciliation

ARPU

service

revenue

and

connection

fees

Reconciliation of OIBDA and ARPU in

Uzbekistan (Unaudited)

($'000)

Dec 31,

2007

Sept 30,

2007

June 30,

2007

March 31,

2007

Dec 31,

2006

Sept 30,

2006

OIBDA

17,756

16,923

11,388

8,664

7,815

9,532

Depreciation

(5,088)

(4,011)

(3,312)

(3,097)

(2,720)

(2,380)

Amortization

(3,480)

(3,438)

(3,414)

(3,383)

(3,378)

(3,268)

Operating Income

9,188

9,474

4,662

2,184

1,717

3,884

Service revenue and

connection fees

37,769

31,159

24,009

18,778

16,446

16,279

Less: Connection fees

Less: Revenue from rent of fiber-

optic channels

Service revenue used to

calculate ARPU

37,769

31,159

24,009

18,778

16,446

16,279

Average number of active subscribers

('000)

1,847

1,372

1,109

930

558

458

ARPU (US$)

6.8

7.6

7.2

6.7

9.8

11.8

Reconciliation of ARPU to service revenue and connection fees

Three months ended

Reconciliation of OIBDA to operating income

Reconciliation of ARPU in Armenia

(Unaudited)

($'000)

Dec 31,

2007

Sept 30,

2007

June 30,

2007

March 31,

2007

Dec 31,

2006

Dec 31,

2007

Sept 30,

2007

June 30,

2007

March 31,

2007

Dec 31,

2006

Service revenue and

connection fees

23,290

25,623

23,208

19,912

10,451

36,299

37,551

35,214

34,242

16,922

Less: Connection fees

129

(271)

Less: Revenue from rent

of fiber-optic channels

Service revenue used

to calculate ARPU

23,224

25,559

23,189

19,783

10,451

36,570

37,463

35,159

34,242

16,922

Average number of active

subscribers ('000)

444

483

446

456

409

622

611

608

607

609

ARPU (US$)

17.4

17.6

17.3

14.5

17.0

19.6

20.4

19.3

18.8

18.5

Reconciliation of ARPU to service revenue and connection fees

Three Months Ended

MOBILE

FIXED

Definitions

Registered subscriber

is an authorized user of cellular services, using one SIM card (GSM/3G) with one or several selective

numbers or one handset (DAMPS/CDMA) with one selective number. The number of subscribers includes employees using

cellular services and excludes guest roamers and users of test SIM cards or handsets.

Active subscribers

are those subscribers in the registered subscriber base who were a party to a revenue generating activity in the

past three months and remain in the base at the end of the reported period. Such activities include all incoming and outgoing calls,

subscriber fee accruals, debits related to service, outgoing SMS, MMS, data transmission and receipt sessions, but do not include

incoming SMS and MMS sent by our Company or abandoned calls.

ARPU

(Monthly Average Revenue per User), a non-U.S. GAAP financial measure, is calculated by dividing the Company’s

service revenue during the relevant period, including roaming revenue and interconnect revenue, but excluding revenue from

connection fees, sales of handsets and accessories and other non-service revenue, by the average number of the Company’s active

subscribers during the period and dividing by the number of months in that period. Reconciliation of ARPU to service revenues

and connection fees, the most directly comparable U.S. GAAP financial measure, is presented above in the tables section. The

Company believes that ARPU provides useful information to investors because it is an indicator of the performance of the

Company’s business operations and assists management in budgeting. The Company also believes that ARPU provides

management with useful information concerning usage and acceptance of the Company’s services. ARPU should not be viewed

in isolation or an alternative to other figures reported under U.S. GAAP.

MOU

(Monthly Average Minutes of Use per User) is calculated by dividing the total number of minutes of usage for incoming

and outgoing calls during the relevant period (excluding guest roamers) by the average number of active subscribers during the

period and dividing by the number of months in that period.

Market share

of subscribers for each country is calculated by dividing the estimated number of the subscribers of a particular

company by the total estimated number of subscribers in that country. Market share data is published by consulting agencies

specializing in the telecommunications industry in Russia and the CIS and generally based on registered subscribers.

Net debt

is calculated as a total interest-bearing debt minus cash and cash equivalents

Free cash flow

is calculated as operating cash flow minus accrued capital expenditures before acquisitions

Average quarterly FX rate to US$

for the CIS countries is calculated as the sum of average exchange rates for each month

within a quarter divided by three months