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 Private Issuer

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

the Securities Exchange Act of 1934

For the month of May 2009

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 the registrant by furnishing the information contained in this Form 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: May 13, 2009

	By:	/s/ Alexander Y. Torbakhov
	Name:	Alexander Y. Torbakhov
	Title:	General Director

LOGO

VIMPELCOM ANNOUNCES FOURTH QUARTER AND AUDITED ANNUAL 2008 FINANCIAL AND OPERATING RESULTS

Moscow and New York (May 13, 2009) - Open Joint Stock Company “Vimpel-Communications” (“VimpelCom” or the “Company”) (NYSE: VIP), the 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, 2008.

Full Year 2008 Financial and Operating Highlights

•

Net operating revenues reached $10,117 million, an increase of 41.1% versus 2007.

•

OIBDA reached $4,860 million, an increase of 35.1% versus 2007.

•

Consolidated OIBDA margin was 48.0%, including 48.9% in Russia and 51.4% in Kazakhstan.

•

Net income totaled $524 million, a reduction of 64.2% versus 2007, reflecting strong adverse currency impact and charges related to impairment loss.

•

Operating cash flow for the year amounted to $3,422 million.

Fourth Quarter 2008 Financial and Operating Highlights

•

Net operating revenues reached $2,555 million, an increase of 27.1% versus 4Q07.

•

OIBDA reached $1,124 million, an increase of 22.4% versus 4Q07.

•

Consolidated OIBDA margin was 44.0% including the fixed-line business.

•

Net loss amounted to $816 million, reflecting $1,012 million loss due to currency devaluation and $443 million impairment loss.

•

Mobile subscribers increased by 3.3 million versus 3Q08, reaching 61.0 million.

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

Commenting on today’s announcement, Boris Nemsic, Chief Executive Officer of VimpelCom, said, “2008 was an important year in the development of VimpelCom. We significantly expanded both the scale and scope of our business. Our consolidated revenues passed the $10 billion mark and the consolidated OIBDA margin stayed close to 50%. Operating cash flow exceeded $3.4 billion. The scale and scope of our business, good cash flow generation and a broad range of anti-crisis measures we have been implementing make us confident that VimpelCom will be able to get through the period of macroeconomic uncertainty and sustain its leadership position”.

In commenting on the announcement, Elena Shmatova, Chief Financial Officer of VimpelCom, said, “Considering the importance and scarcity of liquidity in the current market environment we continue to optimize our debt portfolio. The signing of loan agreements with Sberbank in March was one of the steps we are taking in this regard.”

The economic turmoil in the fourth quarter of 2008 marked the beginning of a different economic environment, which will test the robustness of the business. Our operations in Russia and the CIS showed resilience, delivering 41.1% growth in net operating revenues year-on-year, but more importantly maintaining local currency revenues in line with the previous quarter.

At the same time, in the first months of 2009, we see that the economic conditions in all our markets are deteriorating with a substantial drop in industrial production and growing unemployment. We anticipate that these developments could have a negative impact on the telecom sector. Therefore, while defending our market position, we continue to focus our efforts on cost reduction, operational excellence and effective cash management.

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

Key Consolidated Financial and Operating Results


CONSOLIDATED OPERATIONS (US$, millions)	4Q 2008		4Q 2007^**		y-o-y		3Q 2008		q-o-q		2008		2007^**		y-o-y
Net operating revenues	2,555		2,010		27.1	%	2,843		-10.1	%	10,117		7,171		41.1	%
OIBDA*	1,124		918		22.4	%	1,388		-19.0	%	4,860		3,597		35.1	%
OIBDA margin, %	44.0	%	45.7	%			48.8	%			48.0	%	50.2	%
Net income (loss)	-816		368		n/a		269		n/a		524		1,463		-64.2	%
Net income (loss) per common share, (US$)	-16.12		7.25				5.31				10.34		28.78
Net income (loss) per ADS equivalent, (US$)	-0.81		0.36				0.27				0.52		1.44
Capital expenditures	855.5		795.8		7.5	%	692.9		23.5	%	2,570.8		1,772.8		45.0	%
Mobile subscribers (‘000)	61,029		51,740		18.0	%	57,758		5.7	%	61,029		51,740		18.0	%
Broadband subscribers (‘000)	1,206		n/a				780				1,206		n/a

*	See definitions in Attachment A.

**	2007 figures here and below do not include Golden Telecom operations


*Net operating revenues 4Q 2008^ (US$ millions)**	Russia	CIS	Eliminations	Total
Mobile business	1,797	354	-3	2,148
Fixed business	439	73	-13	499
Eliminations	-79	-7	-6	-92
Total net operating revenue	2,157	420	-22	2,555

*	Due to the increasing integration between different parts of our business, we include inter-company transactions in the reported revenues of geographic and business segments, and indicate the amount of inter-company eliminations within and between the segments.

While we have not seen a direct immediate impact of the economic crisis on our operations during the fourth quarter, our financial results were affected by the sharp devaluation of local currencies in Russia and Ukraine.

This resulted in a $1,012 million quarterly net foreign exchange loss related primarily to revaluation of our long-term foreign currency debt. Furthermore, a significant drop in currency exchange rates and increased risk perception resulted in a $443 million impairment of goodwill and long-lived assets related to acquisitions made in Russia and Ukraine.

Consequently, our fourth quarter income statement showed a net loss of $816 million. If we exclude the foreign currency exchange losses and impairment losses, our income before tax, adjusted for the fourth quarter would have been $639 million (Attachment F).

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

As of year end our debt obligations due in 2009 constituted approximately $1,909 million. Our closing cash balance on December 31^st was $915 million.

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

Russia - Financial and Operating Results


RUSSIA (US$ millions)	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
Net operating revenues	2,157		1,702		26.7	%	2,426		-11.1	%	8,619		6,094		41.4	%
OIBDA	948		773		22.6	%	1,215		-22.0	%	4,215		3,101		35.9	%
OIBDA margin, %	43.9	%	45.4	%			50.1	%			48.9	%	50.9	%
SG&A	667		633		5.4	%	627		6.4	%	2,384		1,903		25.3	%
including Sales & Marketing Expenses	246		186		32.3	%	203		21.2	%	787		600		31.2	%
including General & Administrative Costs	421		447		-5.8	%	424		-0.7	%	1,597		1,303		22.6	%
SG&A percentage	30.9	%	37.2	%			25.8	%			27.7	%	31.2	%
Net income (loss)	-445		364		n/a		259		n/a		880		1,422		-38.1	%

Our quarterly revenues in Russia showed year-on-year growth of 26.7% in US dollar terms. In local currency terms, the revenues grew by 40.0%. The quarterly consolidated OIBDA margin in Russia was 43.9%, down from 50.1% reported in the previous quarter.

In the mobile segment, we reported 5.6% year-on-year growth in quarterly mobile revenues in US dollar terms or 16.7% in ruble terms. Mobile OIBDA margin decreased to 46.7% when compared to 54.2% reported in the previous quarter mainly due to focused seasonal sales efforts, more intensive marketing activities and costs of 3G handsets sales launched during the quarter.

The mobile business remains competitively very agile and capable of responding effectively to market challenges. Our retail distribution strategy is paying off, as we added more than 5 million active mobile subscribers in the second half of 2008. Usage in the fourth quarter remained stable as illustrated by flat MOU.

Our fixed-line revenue increased by 10.9% in local currency terms in fourth quarter 2008 compared to the third quarter 2008. OIBDA margin remained stable reflecting our cost reduction efforts and ability to defend our price levels. However, deteriorating macroeconomic factors forced us to recognize a $315 million impairment loss related to our acquisition of Golden Telecom in February 2008.

We continue increasing our foothold in the fast growing residential broadband market in Russia providing both fixed and mobile solutions. By the year end we operated FTTB networks in 47 cities and 3G networks in 40 cities. In the fourth quarter of 2008 our total number of residential broadband subscribers in Russia including FTTB and 3G increased by 0.4 million subscribers and reached 1.2 million.

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results


RUSSIA REVENUES (US$ millions)	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
Net operating revenues	2,157		1,702		26.7	%	2,426		-11.1	%	8,619		6,094		41.4	%
Mobile revenues	1,797		1,702		5.6	%	2,037		-11.8	%	7,372		6,094		21.0	%
Fixed revenues	439		n/a				445		-1.3	%	1,429		n/a
Eliminations	-79		n/a				-56		n/a		-182		n/a

RUSSIA OIBDA DEVELOPMENT (US$ millions)	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
OIBDA Total	948		773		22.6	%	1,215		-22.0	%	4,215		3,101		35.9	%
Mobile OIBDA	840		773		8.7	%	1,104		-23.9	%	3,872		3,101		24.9	%
Fixed OIBDA	108		n/a				111		-2.7	%	343		n/a
Total OIBDA margin, %	43.9	%	45.4	%			50.1	%			48.9	%	50.9	%
Mobile OIBDA margin, %	46.7	%	45.4	%			54.2	%			52.5	%	50.9	%
Fixed OIBDA margin, %	24.6	%	n/a				24.9	%			24.0	%	n/a

RUSSIA OPERATING DEVELOPMENT	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
Mobile subscribers (‘000)	47,677		42,221		12.9	%	45,093		5.7	%	47,677		42,221		12.9	%
Subscriber market share^*), %	25.4	%	29.9	%			25.1	%			25.4	%	29.9	%
MOU, min	227.8		204.1		11.6	%	228.5		-0.3	%	219.1		192.1		14.1	%
ARPU mobile, US$	12.5		13.5		-7.4	%	15.2		-17.8	%	13.9		12.6		10.3	%
Broadband subscribers (‘000)	1,182		n/a				764		54.7	%	1,182		n/a

Subscriber market share data presented here and in the following country tables are published by AC&M-Consulting. Starting from January 1, 2008 VimpelCom’s subscriber market share is being reported solely on the basis of active subscribers, while previously it was based on registered subscribers. The drop in the reported market share in the fourth quarter of 2008 as compared to the fourth quarter of 2007 is caused by the change of reporting methodology.

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

CIS - Financial and Operating Results


CIS OPERATIONS (US$ millions)	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
Net operating revenues	419.6		314.4		33.5	%	439.8		-4.6	%	1,564.3		1,091.2		43.4	%
OIBDA	179.3		145.2		23.5	%	174.7		2.6	%	652.6		495.9		31.6	%
OIBDA margin, %	42.7	%	46.2	%			39.7	%			41.7	%	45.4	%
SG&A	116.9		83.9		39.3	%	121.4		-3.7	%	448.0		304.6		47.1	%
including Sales & Marketing Expenses	39.5		33.1		19.3	%	39.1		1.0	%	141.6		108.3		30.7	%
including General & Administrative Costs	77.4		50.8		52.4	%	82.3		-6.0	%	306.4		196.3		56.1	%
SG&A percentage	27.9	%	26.7	%			27.6	%			28.6	%	27.9	%
Net income (loss)	-278.5		4.6		n/a		13.3		n/a		-257.1		40.5		n/a

Our total quarterly revenues from the CIS markets increased year-on-year by 33.5% to approximately $420 million and OIBDA grew by 23.5% to $179 million. The CIS markets now represent 16% of the total group consolidated revenues and OIBDA.

In 2008, we observed both a good increase in subscriber numbers and strong annual revenue growth across all markets where we operate. During the turbulent fourth quarter the CIS business showed resilience and maintained stable margin levels, as we had not yet seen the full impact of the economic crisis.

The currency devaluation in Ukraine during the fourth quarter resulted in a foreign exchange loss of $231 million and triggered an impairment write off of $90 million related to our operations of URS.

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

CIS Revenues Development


KAZAKHSTAN (US$ mln)	4Q 2008	4Q 2007	y-o-y		3Q 2008	q-o-q		2008	2007	y-o-y
Net operating revenues	196.9	174.6	12.8	%	198.6	-0.9	%	743.6	610.5	21.8	%
Mobile	193.7	174.6	10.9	%	195.9	-1.1	%	734.2	610.5	20.3	%
Fixed	7.1	n/a			6.0	18.3	%	19.1	n/a
Elimination	-3.9	n/a			-3.3			-9.7	n/a

UKRAINE (US$ mln)	4Q 2008	4Q 2007	y-o-y		3Q 2008	q-o-q		2008	2007	y-o-y
Net operating revenues	70.5	34.5	104.3	%	94.2	-25.2	%	280.7	111.6	151.5	%
Mobile	47.5	34.5	37.7	%	68.2	-30.4	%	197.8	111.6	77.2	%
Fixed	26.4	n/a			32.5	-18.8	%	96.1	n/a
Elimination	-3.4	n/a			-6.5			-13.2	n/a

ARMENIA (US$ mln)	4Q 2008	4Q 2007	y-o-y		3Q 2008	q-o-q		2008	2007	y-o-y
Net operating revenues	63.7	59.8	6.5	%	68.8	-7.4	%	256.2	235.8	8.7	%
Mobile	27.2	23.5	15.7	%	31.6	-13.9	%	108.0	92.4	16.9	%
Fixed	36.5	36.3	0.6	%	37.2	-1.9	%	148.2	143.4	3.3	%
Elimination	0.0	0.0			0.0			0.0	0.0

UZBEKISTAN (US$ mln)	4Q 2008	4Q 2007	y-o-y		3Q 2008	q-o-q		2008	2007	y-o-y
Net operating revenues	66.5	36.5	82.2	%	58.4	13.9	%	216.4	108.1	100.2	%
Mobile	63.5	36.5	74.0	%	55.5	14.4	%	207.1	108.1	91.6	%
Fixed	3.0	n/a			2.9	3.4	%	9.3	n/a
Elimination	0.0	n/a			0.0			0.0	n/a

TAJIKISTAN (US$ mln)	4Q 2008	4Q 2007	y-o-y		3Q 2008	q-o-q		2008	2007	y-o-y
Net operating revenues	16.4	8.1	102.5	%	14.8	10.8	%	50.8	23.8	113.4	%
Mobile	16.4	8.1	102.5	%	14.8	10.8	%	50.8	23.8	113.4	%

GEORGIA (US$ mln)	4Q 2008	4Q 2007	y-o-y		3Q 2008	q-o-q		2008	2007	y-o-y
Net operating revenues	5.9	0.9	555.6	%	5.4	9.3	%	17.7	1.5	1080	%
Mobile	5.9	0.9	555.6	%	5.4	9.3	%	17.7	1.5	1080	%

CIS (US$ mln)	4Q 2008	4Q 2007	y-o-y		3Q 2008	q-o-q		2008	2007	y-o-y
Net operating revenues	419.6	314.4	33.5	%	439.8	-4.6	%	1,564.3	1,091.2	43.4	%
Mobile	354.1	278.1	27.3	%	371.2	-4.6	%	1,315.0	947.8	38.7	%
Fixed	73.0	36.3	101.1	%	78.6	-7.1	%	272.7	143.4	90.2	%
Elimination	-7.5	0.0			-10.0			-23.4	0.0

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

CIS OIBDA Development


KAZAKHSTAN (US$ mln)	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
OIBDA total	97.7		92.2		6.0	%	106.1		-7.9	%	382.2		322.6		18.5	%
Mobile	93.8		92.2		1.7	%	102.9		-8.8	%	372.5		322.6		15.5	%
Fixed	3.9		n/a				3.2		21.9	%	9.7		n/a
OIBDA Margin, %	49.6	%	52.8	%			53.4	%			51.4	%	52.8	%

UKRAINE (US$ mln)	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
OIBDA total	11.6		3.6		222.2	%	-1.6		n/a		22.5		0.5		4400	%
Mobile	5.7		3.6		58.3	%	-8.9		n/a		0.4		0.5		-20.0	%
Fixed	5.9		n/a				7.3		-19.2	%	22.1		n/a
OIBDA margin, %	16.5	%	10.4	%			n/a				8.0	%	0.4	%

ARMENIA (US$ mln)	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
OIBDA total	31.7		32.5		-2.5	%	33.5		-5.4	%	124.6		122.7		1.5	%
Mobile	12.5		9.7		28.9	%	13.9		-10.1	%	47.0		45.8		2.6	%
Fixed	19.2		22.8		-15.8	%	19.6		-2.0	%	77.6		76.9		0.9	%
OIBDA Margin, %	49.8	%	54.3	%			48.7	%			48.6	%	52.0	%

UZBEKISTAN (US$ mln)	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
OIBDA total	34.2		17.8		92.1	%	33.0		3.6	%	115.9		54.7		111.9	%
Mobile	33.0		17.8		85.4	%	32.0		3.1	%	112.8		54.7		106.2	%
Fixed	1.2		n/a				1.0		20.0	%	3.1		n/a
OIBDA Margin, %	51.4	%	48.8	%			56.5	%			53.6	%	50.6	%

TAJIKISTAN (US$ mln)	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
OIBDA total	5.3		1.4		278.6	%	4.8		10.4	%	14.0		2.8		400.0	%
Mobile	5.3		1.4		278.6	%	4.8		10.4	%	14.0		2.8		400.0	%
OIBDA Margin, %	32.3	%	17.3	%			32.4	%			27.6	%	11.8	%

GEORGIA (US$ mln)	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
OIBDA total	-1.2		-2.3		n/a		-1.1		n/a		-6.6		-7.4		n/a
Mobile	-1.2		-2.3		n/a		-1.1		n/a		-6.6		-7.4		n/a
OIBDA Margin, %	n/a		n/a				n/a				n/a		n/a

CIS (US$ mln)	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
OIBDA total	179.3		145.2		23.5	%	174.7		2.6	%	652.6		495.9		31.6	%
Mobile	149.1		122.4		21.8	%	143.6		3.8	%	540.1		419.0		28.9	%
Fixed	30.2		22.8		32.5	%	31.1		-2.9	%	112.5		76.9		46.3	%
OIBDA margin, %	42.7	%	46.2	%			39.7	%			41.7	%	45.4	%

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

CIS Operating Highlights


KAZAKHSTAN	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
Mobile subscribers (‘000)	6,270		4,604		36.2	%	5,614		11.7	%	6,270		4,604		36.2	%
Subscriber market share^*), %	43.4	%	46.5	%			41.2	%			43.4	%	46.5	%
MOU, min	100.5		98.9		1.6	%	108.1		-7.0	%	104.3		94.6		10.3	%
ARPU mobile, US$	10.8		13.0		-16.9	%	12.1		-10.7	%	11.7		13.1		-10.7	%

UKRAINE	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
Mobile subscribers (‘000)	2,052		1,941		5.7	%	2,403		-14.6	%	2,052		1,941		5.7	%
Subscriber market share^*), %	3.6	%	4.8	%			4.3	%			3.6	%	4.8	%
MOU, min	230.0		183.2		25.5	%	261.5		-12.0	%	231.8		163.2		42.0	%
ARPU mobile, US$	7.0		5.6		25.0	%	9.7		-27.8	%	7.6		4.7		61.7	%
Broadband subscribers (‘000)	24		n/a				16		50.0	%	24		n/a
ARPU broadband, US$	13.5		n/a				15.7		-14.0	%	15.3		n/a

ARMENIA	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
Mobile subscribers (‘000)	544		442		23.1	%	784		-30.6	%	544		442		23.1	%
Subscriber market share^*), %	21.2	%	26.1	%			30.5	%			21.2	%	26.1	%
MOU, min	150.0		171.8		-12.7	%	139.9		7.2	%	152.1		169.9		-10.5	%
ARPU mobile, US$	13.6		17.4		-21.8	%	13.9		-2.2	%	14.6		16.7		-12.6	%

UZBEKISTAN	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
Mobile subscribers (‘000)	3,636		2,120		71.5	%	3,148		15.5	%	3,636		2,120		71.5	%
Subscriber market share^*), %	29.6	%	37.3	%			29.8	%			29.6	%	37.3	%
MOU, min	288.6		283.4		1.8	%	298.5		-3.3	%	287.8		274.0		5.0	%
ARPU mobile, US$	6.5		6.8		-4.4	%	6.5		0.0	%	6.4		7.1		-9.9	%

TAJIKISTAN	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
Mobile subscribers (‘000)	625		339		84.4	%	527		18.6	%	625		339		84.4	%
Subscriber market share^*), %	18.3	%	18.1	%			18.3	%			18.3	%	18.1	%
MOU, min	243.4		216.3		12.5	%	255.9		-4.9	%	238.9		220.6		8.3	%
ARPU mobile, US$	9.6		9.0		6.7	%	10.4		-7.7	%	9.5		9.7		-2.1	%

GEORGIA	4Q 2008		4Q 2007		y-o-y		3Q 2008		q-o-q		2008		2007		y-o-y
Mobile subscribers (‘000)	225		73		208.2	%	189		19.0	%	225		73		208.2	%
Subscriber market share^*), %	6.0	%	3.5	%			5.3	%			6.0	%	3.5	%
MOU, min	129.8		121.5		6.8	%	109.8		18.2	%	113.6		102.5		10.8	%
ARPU mobile, US$	9.7		9.0		7.8	%	9.9		-2.0	%	9.0		7.4		21.6	%

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

*	Source: AC&M-Consulting. The drop in the reported market share is caused by the fact that starting from January 1, 2008 VimpelCom’s market share is calculated on the basis of active subscribers, while before that date it was based on registered subscribers.

Other Operations

In October 2008, VimpelCom made a $267 million cash contribution to the charter capital of GTEl-Mobile, our joint-venture in Vietnam. The funds will be used for establishing operations, including the network rollout. We expect the commercial launch of the network in Vietnam in mid-summer of 2009.

Our operations in Cambodia are also developing according to plan and we expect commercial launch of the network in May of 2009.

OTHER (US$ mln)

4Q
2008

4Q
2007

y-o-y

3Q
2008

q-o-q

2008

2007

y-o-y

OIBDA total

-3.3

n/a

-2.2

n/a

-8.1

n/a

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

Recent Developments

•

On April 24, 2009, the Board of Directors recommended to the General Shareholders Meeting to forego dividend payments related to 2008.

•

As of March 31, 2009, the Company had repaid 100% of the debt which came due in the first quarter of 2009 (or $549 million calculated using the exchange rate as of December 31, 2008).

•

On March 2, 2009, the Board of Directors appointed Alexander Torbakhov as the General Director of VimpelCom and Boris Nemsic as the CEO of VimpelCom, effective from April 2, 2009.

•

On March 10, 2009, the Company entered into a loan agreement with Sberbank to borrow 8 billion rubles for three years at a maximum annual interest rate of 19% and $250 million for four years at a maximum annual interest rate of 13%.

•

On March 17, 2009, Jean-Pierre Vandromme, Executive Vice-President for Russian operations, resigned from the Company.

•

In an effort to more accurately reflect the underlying operational performance the Company decided to change the reporting currency to the Russian ruble, which is the functional currency of core market operations. The changes become effective starting from the first quarter of 2009. Our selected financial indicators in local currencies are presented in Attachment E.

* * *

For more information on financial and operating data for specific countries, please refer to the supplementary file FinancialOperatingQ42008.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

The Company’s management will discuss its fourth quarter and annual 2008 results during a conference call and slide presentation on May 13, 2009 at 6:30 pm Moscow time (10:30 am ET). 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 May 20, 2009. The slide presentation webcast will also be available for download on VimpelCom’s website http://www.vimpelcom.com.

The VimpelCom Group consists of telecommunications operators providing voice and data services through a range of mobile, fixed and broadband technologies. The Group includes companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia, Armenia, as well as Vietnam and Cambodia, in territories with a total

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

population of about 340 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, and management’s expectations about the Company’s ability to meet its obligations. 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 continued volatility in the economies in the markets in which the Company operates, unforeseen developments from competition, governmental regulation of the telecommunications industries and general political uncertainties in the markets in which the Company operates 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, if the Company is unable to successfully integrate newly-acquired businesses, including Golden Telecom, and other factors. There can be no assurance that such risks and uncertainties 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, 2007 and other public filings made by the Company with the United States Securities and Exchange Commission, which risk factors are incorporated herein by reference. VimpelCom disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.

For more information, please contact:


Alexey Subbotin		Mateo Millett
VimpelCom		FD
Tel: 7(495) 910-5977		Tel: 1-617 897-1533
Investor_Relations@vimpelcom.com		mateo.millett@fdashtonpartners.com

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

- Definitions and tables are attached –

Attachment A: Definitions

Mobile 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.

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

Broadband subscribers are those subscribers in the registered subscriber base who were a party to a revenue generating activity in the past three months. Such activities include monthly internet access using FTTB, xDSL and WiFi technologies as well as mobile home internet service via USB modems.

CIS Geographic Segment for the purpose of VimpelCom reporting includes our operations in the following countries: Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Armenia and Georgia.

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

General and administrative costs (G&A) include salaries and outsourcing costs, including related social contributions required by Russian law; stock price-based compensation expenses; repair and maintenance expenses; rent, including lease payments for base station sites; utilities; other miscellaneous expenses, such as insurance, operating taxes, license fees, and accounting, audit and legal fees.

Households passed are households located within buildings, in which indoor installation of all the FTTB equipment necessary to install terminal residential equipment has been completed.

Market share of subscribers for each relevant area is calculated by dividing the estimated number of our mobile subscribers in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia, respectively, by the total estimated number of mobile subscribers in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia, respectively, and is provided by AC&M-Consulting.

Mobile services are wireless voice and data transmission services excluding WiFi.

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 mobile subscribers during the period and dividing by the number of months in that period.

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

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

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

Sales and marketing costs (S&M) include marketing, advertising and dealer commissions expenses.

Take-up rate for the FTTB network is calculated by dividing the number of FTTB subscribers by the total number of households passed.

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

Attachment B: VimpelCom financial statements

Open Joint Stock Company “Vimpel-Communications”

Condensed Consolidated Statements of Operations


	Three months ended						Year ended
	December 31,						December 31,
	*(unaudited)*
	2008			2007			2008			2007
	*(In thousands of US dollars , except per share (ADS) amounts)*
Operating revenues:
Service revenues	$	2,489,532		$	2,006,440		$	9,999,850		$	7,161,833
Sales of equipment and accessories		64,417			2,307			107,946			6,519
Other revenues		3,944			2,504			17,190			6,528

Total operating revenues		2,557,893			2,011,251			10,124,986			7,174,880
Revenue based tax		(2,558	)		(1,305	)		(8,054	)		(3,782	)

Net operating revenues		2,555,335			2,009,946			10,116,932			7,171,098

Operating expenses:
Service costs		578,825			365,653			2,262,570			1,309,287
Cost of equipment and accessories		59,322			1,592			101,282			5,827
Selling general and administrative expenses		787,212			715,892			2,838,508			2,206,322
Depreciation		378,642			331,725			1,520,184			1,171,834
Amortization		94,520			56,040			360,980			218,719
Impairment loss		442,747			—			442,747			—
Provision for doubtful accounts		5,995			8,399			54,711			52,919

Total operating expenses		2,347,263			1,479,301			7,580,982			4,964,908


Operating income		208,072			530,645			2,535,950			2,206,190
Other income and expenses:
Interest income		14,241			11,554			71,618			33,021
Interest expense		(153,595	)		(50,274	)		(495,634	)		(194,839	)
Net foreign exchange (loss)/gain		(1,011,996	)		21,614			(1,142,276	)		72,955
Equity in net loss of associates		(63,719	)		(211	)		(61,020	)		(211	)
Other (expenses)/income, net		804			31,588			(17,404	)		3,240

Total other income and expenses		(1,214,265	)		14,271			(1,644,716	)		(85,834	)

Income (loss) before income taxes and minority interest		(1,006,193	)		544,916			891,234			2,120,356
Income tax expense (benefit)		(208,877	)		159,225			303,934			593,928
Minority interest in net earnings of subsidiaries		18,412			17,583			62,966			63,722

Net income (loss)		(815,728	)		368,108			524,334			1,462,706

Net income (loss) per common share	$	(16.12	)	$	7.25		$	10.34		$	28.78
Net income (loss) per ADS equivalent	$	(0.81	)	$	0.36		$	0.52		$	1.44

Weighted average common shares outstanding (thousands)		50,617			50,777			50,700			50,818

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

Open Joint Stock Company “Vimpel-Communications”

Condensed Consolidated Balance Sheets


	December 31, 2008		December 31, 2007
	*(In thousands of US dollars)*
Assets
Current assets:
Cash and cash equivalents	$	914,683	$	1,003,711
Trade accounts receivable		475,667		281,396
Other current assets		1,016,157		441,810

Total current assets		2,406,507		1,726,917

Non–current assets
Property and equipment, net		6,425,873		5,497,819
Telecommunication licenses, net		764,783		915,211
Other intangible assets, net		4,359,772		1,302,318
Investments in associates		493,550		5,908
Other assets		1,274,668		1,120,711

Total non–current assets		13,318,646		8,841,967

Total assets	$	15,725,153	$	10,568,884


Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	896,112	$	697,816
Customer advances and deposits		454,738		423,611
Short-term debt		1,909,221		526,512
Accrued liabilities		554,231		351,762

Total current liabilities		3,814,302		1,999,701

Deferred income taxes		644,475		576,276
Long-term debt		6,533,705		2,240,097
Other non-current liabilities		122,825		52,614

Minority Interest		221,040		288,410

Shareholders’ equity		4,388,806		5,411,786

Total liabilities and shareholders’ equity	$	15,725,153	$	10,568,884

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

Open Joint Stock Company “Vimpel-Communications”

Condensed Consolidated Statements of Cash Flows


	Year ended December 31,
	2008			2007
	*(In thousands of US dollars)*
Net cash provided by operating activities	$	3,421,858		$	3,037,690

Purchases of property and equipment		(2,002,452	)		(1,238,305	)
Purchases of intangible assets		(75,012	)		(73,814	)
Acquisition of subsidiaries, net of cash acquired		(4,134,609	)		(301,355	)
Investments in associates		(491,265	)		—
Loan granted		(350,000	)		—
Short-term deposits		43,179			(42,356	)
Exercise of escrow cash deposit		200,170			(200,170	)
Purchase of minority interest in consolidated subsidiaries		(992,825	)		—
Purchases of other assets, net		(367,227	)		(378,552	)

Net cash used in investing activities		(8,170,041	)		(2,234,552	)

Proceeds from bank and other loans		6,209,392			666,348
Proceeds from sale of treasury stock		25,488			39,787
Purchase of treasury shares		(114,476	)		(81,069	)
Repayments of bank and other loans		(721,222	)		(472,545	)
Payment of dividends		(587,302	)		(331,885	)
Payments of fees in respect of debt issues		(68,159	)		(14,380	)

Net cash provided by/(used in) financing activities		4,743,721			(193,744	)

Effect of exchange rate changes on cash and cash equivalents		(84,566	)		49,823


Net (decrease)/ increase in cash and cash equivalents		(89,028	)		659,217
Cash and cash equivalents at beginning of period		1,003,711			344,494

Cash and cash equivalents at end of period	$	914,683		$	1,003,711


Supplemental cash flow information
Cash paid during the period:
Income tax	$	647,597		$	601,939
Interest		406,020			201,259
Non-cash activities:
Equipment acquired under financing agreements		2,726			48,514
Accounts payable for equipment and other long-lived assets		448,218			417,478
Issue of promissory notes		81,660			—
Non-cash discounts from suppliers of equipment		2,464			(5,441	)
Acquisitions:
Fair value of assets acquired		2,645,655			84,125
Fair value of minority interest acquired		206,129			41,636
Difference between the amount paid and the fair value of net assets acquired		3,517,062			182,034
Consideration for the acquisition of subsidiaries		(5,348,180	)		(291,928	)

Change in fair value of liabilities assumed	$	1,020,666		$	15,867

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

Attachment C: Reconciliation Tables (Unaudited)

Reconciliation of Consolidated OIBDA

(In millions of US dollars)


OIBDA Consolidated Total	4Q 2008		4Q 2007		3Q 2008		2008		2007
OIBDA	1,124		918		1,388		4,860		3,597
Depreciation	(379	)	(331	)	(400	)	(1,520	)	(1,172	)
Amortization	(94	)	(56	)	(98	)	(361	)	(219	)
Impairment loss	(443	)	0		0		(443	)	0
Operating income	208		531		890		2,536		2,206

Reconciliation of Consolidated OIBDA Margin

OIBDA Margin Consolidated Total	4Q 2008		4Q 2007		3Q 2008		2008		2007
OIBDA margin	44.0	%	45.7	%	48.8	%	48.0	%	50.2	%
Less: Depreciation as a percentage of net operating revenues	(14.9	)%	(16.5	)%	(14.1	)%	(15.0	)%	(16.3	)%
Less: Amortization as a percentage of net operating revenues	(3.7	)%	(2.8	)%	(3.4	)%	(3.5	)%	(3.1	)%
Less: Impairment loss as a percentage of net operating revenues	(17.3	)%	0.0	%	0.0	%	(4.4	)%	0.0	%
Operating income as a percentage of net operating revenues	8.1	%	26.4	%	31.3	%	25.1	%	30.8	%

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

Attachment D: Capex Development


CAPEX (in US$ millions)	4Q 2008	4Q 2007	y-o-y		3Q 2008	q-o-q		2008	2007	y-o-y
Total capex	855.5	795.8	7.5	%	692.9	23.5	%	2,570.8	1,772.8	45.0	%
Russia	641.5	467.2	37.3	%	504.1	27.3	%	1,776.4	1,072.5	65.6	%
CIS	203.5	328.6	-38.1	%	186.8	8.9	%	775.1	700.3	10.7	%
Kazakhstan	79.7	96.4	-17.3	%	77.1	3.4	%	254.8	213.9	19.1	%
Ukraine	57.8	55.2	4.7	%	46.9	23.2	%	185.4	156.5	18.5	%
Armenia	23.7	44.3	-46.5	%	19.1	24.1	%	78.3	90.8	-13.8	%
Uzbekistan	17.2	83.6	-79.4	%	28.4	-39.4	%	176.3	133.9	31.7	%
Tajikistan	18.0	20.2	-10.9	%	6.4	181.3	%	45.1	45.5	-0.9	%
Georgia	7.1	28.9	-75.4	%	8.9	-20.2	%	35.2	59.7	-41.0	%
Other	10.5	n/a			2.0	425.0	%	19.3	n/a

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

Attachment E: Key Financial Results in Local Currencies

Russia


RUSSIA (RUB millions)	4Q 2008		3Q 2008		q-o-q
Net operating revenues	58,748		58,803		-0.1	%
OIBDA	25,751		29,395		-12.4	%
OIBDA margin, %	43.8	%	50.0	%

Ukraine


UKRAINE (UAH millions)	4Q 2008		3Q 2008	q-o-q
Net operating revenues	424		457	-7.2	%
OIBDA	75		-8	n/a
OIBDA margin, %	17.7	%	n/a

LOGO

VimpelCom Announces Fourth Quarter and Twelve Months 2008 Financial and Operating Results

Attachment F: Reconciliation of Net Income Adjusted to Net Loss Reported


Adjusted Consolidated Net Income (in US$ millions)	4Q 2008
Net income (loss) reported	(816	)
Net foreign exchange loss	(1,012	)
Russia fixed goodwill impairment	(315	)
Ukraine goodwill and LLA impairment	(90	)
DVBH/DVBT licenses write off	(38	)
Income before tax, adjusted	639

Income tax effect on above mentioned transactions	(252	)
Adjusted net income	387

LOGO

VimpelCom

4Q08 and FY08 Financial and Operating

Results

2009

Beeline 2009

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, to the Company's strategy, development plans and anticipated

performance

during

the

economic

crisis.

The

forward-looking

statements

are

based

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 continued volatility in the

economies in the markets in which the Company operates, unforeseen developments from

competition, governmental regulation of the telecommunications industries and general political

uncertainties in the markets in which the Company operates and/or litigation with third parties.

The actual outcome may differ materially from these statements as a result of continued volatility

in the economies in the markets in which the Company operates, unforeseen developments from

competition, governmental regulation of the telecommunications industries and general political

uncertainties in the markets in which the Company operates and/or litigation with third parties.

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, 2007

and other public filings made by the Company with the United States Securities and Exchange

Commission, which risk factors are incorporated herein by reference. 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.

2009

Beeline 2009

Participants

Presentation

Q&A Session

will be joined by:

Kent McNeley,

VP, Chief Marketing Officer

Dmitry Pleskonos,

Executive VP, Business Development CIS

Andrey Patoka,

VP, Head of B2B Russia

Alexander Torbakhov, General Director

Boris Nemsic, Chief Executive Officer

Elena Shmatova, CFO

2009

Beeline 2009

2008 in Brief

•

Record revenue of $10.1 billion generating OIBDA of $4.9

billion and operating cash flow of $3.4 billion

•

VimpelCom transformed into an integrated telecom operator

with diversified revenue base and wide geographic footprint

•

Strategic shifts in the distribution strategy resulted in a

significant improvement in sales

•

Acquisition of licenses in Vietnam and Cambodia and start of

network development in both countries

•

Strong cash position coupled with a set of anti-crisis measures

should ensure the Company’s ability to navigate through the

macroeconomic turmoil

2009

Beeline 2009

2008 Financial Highlights

Revenue

, $ mln

Net Income, $ mln

OIBDA, $ mln

OIBDA Margin, %

48.0%

50.2%

50.4%

48.9%

48.6%

46.1%

2003

2004

2005

2006

2007

2008

+41.1%

10,117

7,171

4,868

3,211

2,113

1,330

2003

2004

2005

2006

2007

2008

-64.2%

229

350

615

811

1,463

524

2003

2004

2005

2006

2007

2008

+35.1%

4,860

3,597

2,452

1,571

1,027

613

2003

2004

2005

2006

2007

2008

* Here and thereafter relates to net

operating revenue

2009

Beeline 2009

Quarterly Financial Dynamics

Revenue, $ mln

Net Income (Loss), $ mln

OIBDA, $ mln

OIBDA Margin, %

+27.1%

1,956

2,010

2,108

2,611

2,843

2,555

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

+22.4%

1,124

1,388

1,223

1,126

918

1,015

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

51.9%

45.7%

53.4%

46.8%

48.8%

44.0%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

-816

269

470

601

368

458

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

2009

Beeline 2009

601

470

269

-816

524

1Q08

2Q08

3Q08

4Q08

FY2008

185

-1,012

-1,142

-341

1Q08

2Q08

3Q08

4Q08

FY2008

Net Income Analysis

Net Income/Loss 2008, $ mln

Net Loss 4Q08 Analysis, $ mln

FX Gain/Loss in 2008, $ mln

* Net loss adjusted for FX loss and goodwill and long-lived assets

(LLA) impairment, DVBH/DVBT licenses write-off before tax

effect on these adjustments

639

-1,012

-443

-816

4Q08 Income before

tax, adjusted*

FX Loss

Goodwill and LLA

Impairment,

DVBT/DVBH

licenses write-off

Net loss reported

2009

Beeline 2009

Financial Position

* LTM OIBDA constitutes the sum of the lines: LTM Operating income

and LTM Depreciation, amortization and impairment loss. LTM

stands

for

“last

twelve

months”

reporting

date.

cases

when

OIBDA is part of financial ratios it is deemed to be calculated in

accordance with the reconciliation tables in the Company’s earnings

release.

Balance Sheet

OIBDA vs

CAPEX, $ mln

OIBDA vs

Debt, $ mln

3,368

3,597

3,956

4,282

4,654

4,860

411

527

969

1,248

1,748

1,909

0.8

1.8

1.7

3Q 07

4Q 07

1Q 08

2Q 08

3Q08

4Q08

OIBDA LTM

Short-term Debt

Total Debt/OIBDA

3,368

3,597

3,956

4,282

4,654

4,860

1,511

1,828

2,157

2,511

2,571

1,773

25%

26%

25%

23%

3Q 07

4Q 07

1Q 08

2Q 08

3Q08

4Q08

OIBDA LTM

CAPEX LTM

CAPEX/Revenue

($ mln)

Dec 31,

2008

Dec 31,

2007

Dec 31,

2006

Cash and Cash Equivalents

915

1,004

344

Total Assets

15,725

10,569

8,437

Total Debt

8,443

2,767

2,489

-Short-term

1,909

527

424

-Long-term

6,534

2,240

2,065

Shareholders' Equity

4,389

5,412

3,943

LTM OIBDA*

4,860

3,597

2,452

LTM Depreciation, amortization

and impairment loss

2,324

1,391

1,055

LTM Operating Income

2,536

2,206

1,397

LTM Interest

496

195

186

Debt/Equity

1.9

0.5

0.6

Debt/OIBDALTM

1.7

0.8

1.0

OIBDA/Interest

9.8

18.4

13.2

Debt/Assets

0.54

0.26

0.30

Net Debt

7,528

1,763

2,145

2009

Beeline 2009

Fixed, 56%

Floating,

44%

Debt Profile as of December 31, 2008

Debt Maturity Schedule, $ mln

Debt Composition

USD; 75%

RUR; 15%

EUR; 10%

52%

45%

Banks,

Vendors,

Bonds,

* $609 million paid as of April 30, 2009 (at the rate of

December 31, 2008)

1 000

600

1,909

1 992

324

1 503

1 098

648

287

549

426

1Q09

2Q09

3Q09

4Q09

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2009

Beeline 2009

Russia: Total Operations

CAPEX, $ mln

Revenue*, $ mln

OIBDA ($ mln) and OIBDA Margin

CAPEX / Revenue LTM

* Total revenue adjusted for eliminations between

fixed and mobile segments in Russia

2,426

2,239

2,157

1,797

1,653

1,702

1,675

1,862

2,037

1,797

414

445

132

439

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

1,215

1,060

993

948

959

773

871

1,104

969

840

52.7%

45.4%

55.3%

47.3%

43.9%

50.1%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

Mobile

Fixed

OIBDA Margin

467

642

207

217

504

424

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

17%

18%

17%

18%

20%

21%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

2009

Beeline 2009

Russia: Mobile Highlights

Mobile ARPU & MOU

Revenue, $ mln

OIBDA & OIBDA Margin

Subscribers, mln

+12.9%

41.8

42.2

42.1

45.1

47.7

42.5

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

13.4

13.5

13.2

14.7

15.2

12.5

228

209

204

199

220

229

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

150

300

ARPU ($)

MOU (min)

+5.6%

1,653

1,702

1,675

1,862

2,037

1,797

500

1000

1500

2000

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

840

1,104

969

959

773

871

52.7%

45.4%

57.3%

52.0%

54.2%

46.7%

500

1000

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

OIBDA ($ mln)

OIBDA Margin

2009

Beeline 2009

Russia: Fixed Revenue

Revenue, $ mln

Business Segment, $ mln

Wholesale Segment, $ mln

Residential Segment, $ mln

GT revenue

VIP revenue

+21.3%

376

132

414

445

244

362

324

439

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

192

207

213

172

193

124

201

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

144

160

186

129

139

190

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

2009

Beeline 2009

11.3

11.4

14.5

15.2

17.1

16.6

16.9

15.5

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

Russia: Residential Broadband Development

FTTB

Households Passed (mln) & Take-up Rate

(pro-forma)

Broadband Revenue, $ mln

(pro-forma)

Broadband Subscribers, ‘000

(pro-forma)

Broadband ARPU, $

(pro-forma)

* Fiber-to-the-Building

Fixed Residential BB

7.2

3.0

3.8

4.1

5.5

5.9

8.4%

8.9%

8.8%

9.2%

10.3%

8.6%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q08

10%

12%

14%

16%

18%

20%

22%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

310

428

530

604

764

1,182

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

Mobile Internet (USB modems)

2009

Beeline 2009

10.8

13.6

11.6

12.3

12.1

13.0

113

110

108

101

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

20.0

40.0

60.0

80.0

100.0

120.0

140.0

ARPU ($)

MOU (min)

Kazakhstan: Operating & Financial Highlights

Revenue ($ mln) & OIBDA Margin

Capex

/ Revenue (LTM)

Mobile Subscribers, mln

Mobile ARPU & MOU

+36.2%

5.1

4.8

6.3

4.6

4.3

5.6

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

30%

35%

34%

38%

34%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

197

199

185

163

175

167

52.7%

52.8%

50.4%

52.0%

53.4%

49.6%

80.00

100.00

120.00

140.00

160.00

180.00

200.00

220.00

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

Revenue

OIBDA Margin

2009

Beeline 2009

Ukraine: Operating & Financial Highlights

Revenue* ($ mln) & OIBDA Margin

Capex

/ Revenue (LTM)

Mobile Subscribers, mln

Mobile ARPU & MOU

* Total revenue adjusted for eliminations between fixed

and mobile segments in Ukraine

+5.7%

2.2

2.0

1.9

2.1

2.4

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

7.0

5.8

5.6

6.1

7.5

9.7

230

262

231

210

183

168

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

120

170

220

270

ARPU ($)

MOU (min)

171%

140%

110%

86%

75%

66%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

16.5%

-1.7%

13.2%

7.1%

10.4%

17.6%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

-30.0%

20.0%

70.0%

Mobile

Fixed

OIBDA Margin

2009

Beeline 2009

Armenia: Operating & Financial Highlights

Revenue* ($ mln) & OIBDA Margin

Capex

/ Revenue (LTM)

Mobile Subscribers, ‘000

Mobile ARPU & MOU

* Total revenue adjusted for eliminations between fixed

and mobile segments in Armenia

13.6

17.6

17.4

16.1

15.3

13.9

150

140

165

159

172

181

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

130

180

Mobile ARPU ($)

Mobile MOU (min)

31%

39%

41%

42%

39%

27%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

+23.1%

447

544

442

520

655

784

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

51.9%

54.3%

49.2%

46.8%

48.7%

49.8%

0.00

20.00

40.00

60.00

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Mobile

Fixed

OIBDA Margin

2009

Beeline 2009

Uzbekistan: Operating & Financial Highlights

Revenue ($ mln) & OIBDA Margin

Capex

/ Revenue (LTM)

Mobile Subscribers, mln

Mobile ARPU & MOU

51.4%

56.5%

53.5%

52.9%

48.8%

56.0%

0.00

20.0

40.0

60.0

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Revenue

OIBDA Margin

82%

130%

151%

134%

124%

80%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

71.5%

2.8

2.4

3.1

1.6

2.1

3.6

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

6.5

7.6

6.8

5.8

6.6

6.5

289

299

295

265

283

290

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

130

180

230

280

ARPU($)

MOU (min)

2009

Beeline 2009

South-East Asian Operations

Vietnam

Population: 86.1 mln.

Penetration: ~58%*

GDP per capita: $2,900**

GDP growth rate in 2008: 6.2%

Cambodia

Population: 14.2 mln.

Penetration: ~25%*

GDP per capita: $2,100**

GDP growth rate in 2008: 6.8%

Source: Global Mobile, Company estimates

PPP

adjusted;

Source:

CIA

World

Factbook.

•

In October 2008, VimpelCom contributed $267

million in cash to its joint venture in Vietnam to

finance first year network rollout

•

Network rollout and development of distribution in

progress in both countries

•

Despite the economic crisis economies both in

Vietnam and Cambodia continue to grow

•

Starting commercial operations in Cambodia in May

of 2009 and in Vietnam in mid-summer of 2009

2009

Beeline 2009

New Management as of April 2, 2009

Alexander Torbakhov

General Director

Ex-General Director of Life

Insurance at Rosgosstrakh,

Russia’s largest insurance

company

Boris Nemsic

Chief Executive Officer

Ex-Chief Executive Officer of

the Telekom Austria Group

Corporate functions:

•

Finance

•

Human Resources

•

Legal & Regulatory

•

Government Relations

Operational Management:

•

Russia

•

CIS

•

International Business

•

Marketing and Sales

•

Procurement

•

Technology

2009

Beeline 2009

Summary

•

2008 was a transformational year delivering strong

operational performance

•

Adjusting to the new reality, current management focus is on

operational excellence, cash flow generation and debt

repayment

•

CAPEX guidance for 2009 is between 12% and 15% of

consolidated revenue

•

Scale, scope and efficiency of operations form a solid

foundation for the future

2009

Beeline 2009

APPENDICES

2009

Beeline 2009

Map of Operations

Population: 46.2 mln.

Acquired: Nov. 2005

Penetration: 121%

GDP* 7,800

Population: 7.2 mln.

Acquired: Jan. 2006

Penetration: 48%

GDP* 1,800

Population: 3.2 mln.

Acquired: Nov. 2006

Penetration: 79%

GDP* 6,600

Population: 27.1 mln.

Acquired: Jan. 2006

Penetration: 45%

GDP* 2,700

Population: 4.5 mln.

Acquired: Jul. 2006

Penetration: 83%

GDP* 5,000

Population: 15.6 mln.

Acquired: Sept. 2004

Penetration: 93%

GDP* 12,000

Population: 86.1 mln.

JVA signed: Jul. 2008

Penetration: ~58%

GDP* 2,900

Population: 14.2 mln.

Acquired : Jul. 2008

Penetration: ~25%

GDP* 2,100

*GDP(PPP), $ per capita

Source: CIA World Factbook; AC&M-Consulting; Global Mobile

Population: 142.0 mln.

Penetration: 132%

GDP*: 15,800

2009

Beeline 2009

Source: Prime TASS, National Banks of the CIS

countries

FOREX Development

1.550

306.5

1358

3.41

6.21

120.2

27.27

Average

Rate

4Q08

1.446

307.2

1306

3.43

4.96

120.6

23.63

Average

Rate

2Q08

1.476

307.3

1300

3.44

5.05

120.7

23.52

Closing

Rate

1.556

307.9

1295

3.46

5.05

120.4

24.26

Average

Rate

1.592

304.6

1290

3.46

5.05

120.6

24.55

Opening

rate

1Q08

1.405

302.1

1330

3.41

4.86

119.8

25.25

Closing

Rate

1.409

302.3

1319

3.42

4.85

120.0

24.25

Average

Rate

3Q08

1.418

302.7

1310

3.43

4.85

120.8

23.46

Closing

Rate

Currency

1.667

GEL

Closing

Rate

306.7

AMD

1393

UZS

3.45

TJS

7.70

UAH

120.8

KZT

29.38

RUB

2009

Beeline 2009

Composition

the

CIS

Business

2008

Revenues, $ mln

CAPEX, $ mln

OIBDA, $ mln

70.5

63.7

16.4

5.9

419.6

66.5

196.9

Kazakhstan

Ukraine

Uzbekistan

Armenia

Tajikistan

Georgia

CIS Total

97.7

34.2

31.7

5.3

179.3

-1.2

11.6

Kazakhstan

Ukraine

Uzbekistan

Armenia

Tajikistan

Georgia

CIS Total

18.0

7.1

203.5

17.2

79.7

57.8

23.7

Kazakhstan

Ukraine

Uzbekistan

Armenia

Tajikistan

Georgia

CIS Total

2009

Beeline 2009

CIS Mobile: Financial Highlights

Kazakhstan

Ukraine

Uzbekistan

Revenue, $ mln

OIBDA, $ mln

Armenia

Tajikistan

Georgia

167

175

162

183

196

194

-9

103

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

0.3

0.9

16.4

5.9

5.4

3.9

2.4

8.1

14.8

11.2

8.4

7.7

-2.0

-2.3

-2.2

-2.1

-1.1

-1.2

1.6

1.4

1.3

2.6

4.8

5.3

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

2009

Beeline 2009

CIS Mobile: Active Subscribers, mln

Kazakhstan

Ukraine

Uzbekistan

Armenia

Tajikistan

Georgia

2.2

1.9

2.0

2.1

2.4

2.1

1.6

2.1

2.4

2.8

3.1

3.6

4.3

4.6

4.8

5.1

5.6

6.3

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

0.27

0.34

0.38

0.44

0.53

0.62

0.03

0.07

0.15

0.17

0.19

0.23

0.54

0.78

0.65

0.52

0.44

0.45

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

2009

Beeline 2009

CIS Mobile: ARPU & MOU Development

Kazakhstan

Ukraine

Uzbekistan

Armenia

Tajikistan

Georgia

10.8

12.1

12.3

11.6

13.0

13.6

7.0

9.7

7.5

6.1

5.6

5.8

6.5

6.6

5.8

6.8

7.6

289

299

295

265

283

290

230

262

231

210

183

168

101

108

110

113

0.0

6.0

12.0

18.0

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

140

210

280

16.1

15.3

13.9

6.3

17.4

13.6

9.6

17.6

9.7

9.9

8.2

7.4

9.0

10.4

9.4

8.0

9.0

10.8

172

181

159

165

140

150

230

216

206

241

256

243

122

110

130

0.0

6.0

12.0

18.0

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

140

210

280

ARPU ($)

MOU (min)

2009

Beeline 2009

CIS Mobile: Subscriber Market Shares*

Kazakhstan

Ukraine

Uzbekistan

Armenia

Tajikistan

Georgia

* Source: AC&M Consulting. The drop in reported market

share is mainly caused by the change of reporting

methodology to active subscriber base

40%

43%

41%

47%

40%

47%

53%

49%

51%

47%

54%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

VIP

K'Cell

Other

34%

37%

36%

30%

31%

49%

48%

50%

48%

46%

49%

21%

19%

17%

14%

12%

11%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

VIP

Uzdunrobita

Coscom

Other

4.7%

3.5%

1.6%

5.0%

6.0%

5.0%

45%

48%

52%

41%

42%

46%

48%

50%

53%

52%

54%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

VIP

Geocell

Magticom

21%

31%

30%

27%

26%

34%

79%

69%

66%

74%

73%

70%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

VIP

Vivacell

16%

18%

17%

18%

17%

10%

75%

77%

78%

75%

73%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

VIP

TT Mobile

Others

42%

43%

42%

43%

33%

32%

35%

36%

37%

14%

16%

17%

18%

19%

20%

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

VIP

Kievstar

UMC

Astelit

Other

2009

Beeline 2009

Reconciliation of Consolidated OIBDA and

OIBDA Margin (Unaudited)

(US$ millions)

Dec 31,

2008

Sept 30,

2008

June 30,

2008

March 31,

2008

Dec 31,

2007

Sept 30,

2007

OIBDA

1,124

1,388

1,223

1,126

918

1,015

Depreciation

(379)

(400)

(385)

(357)

(331)

(286)

Amortization

(94)

(98)

(101)

(67)

(56)

(55)

Impairment loss

(443)

Operating Income

208

890

737

702

531

674

OIBDA margin

44.0%

48.8%

46.8%

53.4%

45.7%

51.9%

Less: Depreciation as % of

net operating revenues

(14.9%)

(14.1%)

(14.7%)

(16.9%)

(16.5%)

(14.6%)

Less: Amortization as % of

net operating revenues

(3.7%)

(3.4%)

(3.9%)

(3.2%)

(2.8%)

Less: Impairment loss as %

of net operating revenues

(17.3%)

0.0%

Operating Income

8.1%

31.3%

28.2%

33.3%

26.4%

34.5%

Reconciliation of OIBDA to operating income

Reconciliation of OIBDA margin to operating income as percentage of

net operating revenue

Three months ended

VIP-Group

(in US$ millions, unless stated otherwise)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	1,488		1,717		1,956		2,010		2,108		2,611		2,843		2,555
Gross margin	1,221		1,403		1,590		1,643		1,675		2,012		2,149		1,917
Gross margin, %	82.1	%	81.7	%	81.3	%	81.7	%	79.5	%	77.1	%	75.6	%	75.0	%
OIBDA	766		897		1,015		918		1,126		1,223		1,388		1,124
OIBDA, %	51.5	%	52.2	%	51.9	%	45.7	%	53.4	%	46.8	%	48.8	%	44.0	%
SG&A	439		494		557		716		528		774		749		787
including Sales & Marketing Expenses	136		167		186		219		187		215		242		285
including advertising	52		67		66		92		69		89		86		101
including General & Administrative Costs	303		327		371		497		341		559		507		502
SG&A, %	29.5	%	28.8	%	28.5	%	35.6	%	25.0	%	29.6	%	26.3	%	30.8	%
Net income (loss)	277		359		458		368		601		470		269		-816
Capital Expenditures	303.5		334.8		338.8		795.8		358.5		664.0		692.9		855.5

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	1,454		1,682		1,918		1,974		1,944		2,178		2,402		2,148
including Mobile Interconnect	209		241		270		303		300		323		355		326
Mobile OIBDA	750		878		996		896		1,072		1,104		1,248		989
Mobile OIBDA, %	51.6	%	52.2	%	51.9	%	45.4	%	55.1	%	50.7	%	52.0	%	46.0	%

Subscribers (‘000)	45,784		47,702		50,686		51,740		52,293		53,707		57,758		61,029

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	34.2		35.2		37.6		36.3		175.1		476.6		510.0		498.6
including business segment	0.0		0.0		0.0		0.0		74.4		227.1		235.0		218.2
including wholesale segment	0.0		0.0		0.0		0.0		50.6		165.7		194.2		197.6
including residential segment	34.2		35.2		37.6		36.3		50.2		83.7		80.8		82.8
Fixed OIBDA	16.2		18.5		19.5		22.8		55.0		120.4		141.8		138.3
Fixed OIBDA, %	47.4	%	52.6	%	51.9	%	62.8	%	31.4	%	25.3	%	27.8	%	27.7	%

Broadband subscribers (‘000)	0		0		0		0		534		610		780		1,206
Broadband services ARPU, blended, US$	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a

OTHER	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Other revenues									0.0		0.0		0.0		0.0
Other OIBDA									-1.0		-1.6		-2.2		-3.3
Other OIBDA, %									n/a		n/a		n/a		n/a

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
OIBDA	766		897		1,015		918		1,126		1,223		1,388		1,124
Depreciation	(269	)	(285	)	(286	)	(331	)	(357	)	(385	)	(400	)	(379	)
Amortization	(53	)	(54	)	(55	)	(56	)	(67	)	(101	)	(98	)	(94	)
Impairment loss	0		0		0		0		0		0		0		(443	)
Operating income	444		558		674		531		702		737		890		208

OIBDA margin total	51.5	%	52.2	%	51.9	%	45.7	%	53.4	%	46.8	%	48.8	%	44.0	%
Less: Depreciation as a percentage of net operating revenues	(18.1	)%	(16.6	)%	(14.6	)%	(16.5	)%	(16.9	)%	(14.7	)%	(14.1	)%	(14.9	)%
Less: Amortization as a percentage of net operating revenues	(3.6	)%	(3.1	)%	(2.8	)%	(2.8	)%	(3.2	)%	(3.9	)%	(3.4	)%	(3.7	)%
Less: Impairment loss as a percentage of net operating revenues	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	(17.3	)%
Operating income as a percentage of net operating revenues	29.8	%	32.5	%	34.5	%	26.4	%	33.3	%	28.2	%	31.3	%	8.1	%

Russia

(in US$ millions, unless stated otherwise)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	1,279		1,460		1,653		1,702		1,797		2,239		2,426		2,157
Gross margin	1,065		1,209		1,363		1,410		1,445		1,730		1,852		1,619
Gross margin, %	83.3	%	82.8	%	82.5	%	82.8	%	80.4	%	77.3	%	76.3	%	75.1	%
OIBDA	676		780		871		773		993		1,060		1,215		948
OIBDA, %	52.9	%	53.4	%	52.7	%	45.4	%	55.3	%	47.3	%	50.1	%	43.9	%
SG&A	375		419		477		633		433		657		627		667
including Sales & Marketing Expenses	114		141		159		186		158		181		203		246
including advertising	42		56		56		79		56		74		72		86
including General & Administrative Costs	261		278		318		447		276		476		424		421
SG&A, %	29.3	%	28.7	%	28.9	%	37.2	%	24.1	%	29.3	%	25.8	%	30.9	%
Net income (loss)	280		356		423		364		616		449		259		-445
Capital Expenditures	199.6		189.0		216.9		467.2		207.1		423.7		504.1		641.5

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	1,279		1,460		1,653		1,702		1,675		1,862		2,037		1,797
including Mobile Interconnect	171		203		224		253		253		270		289		263
Mobile OIBDA	676		780		871		773		959		969		1,104		840
Mobile OIBDA, %	52.9	%	53.4	%	52.7	%	45.4	%	57.3	%	52.0	%	54.2	%	46.7	%

Subscribers (‘000)	38,631		40,140		41,802		42,221		42,079		42,485		45,093		47,677
ARPU, US$	10.9		12.3		13.4		13.5		13.2		14.7		15.2		12.5
MOU, min	160.9		192.6		208.9		204.1		198.7		220.3		228.5		227.8
Churn 3 months active base (quarterly), %	n/a		7.5	%	8.1	%	9.1	%	9.2	%	8.7	%	7.7	%	9.0	%
Subscriber market share, %	31.2	%	30.9	%	30.4	%	29.9	%	25.0	%	24.6	%	25.1	%	25.4	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	0		0		0		0		132		414		445		439
including business segment	0		0		0		0		68		207		213		201
including wholesale segment	0		0		0		0		50		160		186		190
including residential segment	0		0		0		0		14		47		46		48
Fixed OIBDA	0		0		0		0		34		91		111		108
Fixed OIBDA, %	0		0		0		0		25.8	%	22.0	%	24.9	%	24.6	%

Broadband subscribers (‘000)	0		0		0		0		530		604		764		1,182
Broadband services ARPU, blended, US$	0		0		0		0		17.6		16.9		15.4		13.7

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
OIBDA	676		780		871		773		993		1,060		1,215		948
Depreciation	(232	)	(240	)	(250	)	(268	)	(288	)	(310	)	(331	)	(293	)
Amortization	(29	)	(29	)	(29	)	(31	)	(35	)	(61	)	(54	)	(52	)
Impairment loss	0		0		0		0		0		0		0		(315	)
Operating income	415		511		592		474		670		689		830		288

OIBDA margin total	52.9	%	53.4	%	52.7	%	45.4	%	55.3	%	47.3	%	50.1	%	43.9	%
Less: Depreciation as a percentage of net operating revenues	(18.2	)%	(16.4	)%	(15.1	)%	(15.8	)%	(16.1	)%	(13.8	)%	(13.7	)%	(28.1	)%
Less: Amortization as a percentage of net operating revenues	(2.3	)%	(2.0	)%	(1.8	)%	(1.8	)%	(1.9	)%	(2.7	)%	(2.2	)%	(2.4	)%
Less: Impairment loss as a percentage of net operating revenues	0		0		0		0		0		0		0		(33.2	)%
Operating income as a percentage of net operating revenues	32.4	%	35.0	%	35.8	%	27.8	%	37.3	%	30.8	%	34.2	%	13.4	%

CIS

(in US$ millions, unless stated otherwise)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	210.9		260.1		305.7		314.4		316.9		388.1		439.8		419.6
Gross margin	156.8		194.7		226.2		232.9		230.8		282.0		298.0		298.1
Gross margin, %	74.3	%	74.9	%	74.0	%	74.1	%	72.8	%	72.7	%	67.8	%	71.0	%
OIBDA	90.0		116.9		144.0		145.2		134.3		164.4		174.7		179.3
OIBDA, %	42.7	%	44.9	%	47.1	%	46.2	%	42.3	%	42.4	%	39.7	%	42.7	%
SG&A	65.1		76.4		79.4		83.9		94.3		115.4		121.4		116.9
including Sales & Marketing Expenses	22.3		26.0		27.3		33.1		29.0		33.9		39.1		39.5
including advertising	9.2		10.7		10.5		13.0		13.4		15.4		14.5		15.3
including General & Administrative Costs	42.8		50.4		52.1		50.8		65.3		81.5		82.3		77.4
SG&A, %	30.9	%	29.4	%	26.0	%	26.7	%	29.8	%	29.7	%	27.6	%	27.9	%
Net income (loss)	-3.1		3.7		35.6		4.6		-14.3		22.3		13.3		-278.5
Capital Expenditures	103.9		145.8		121.9		328.6		146.0		238.9		186.8		203.5

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	176.7		224.9		268.1		278.1		270.9		318.9		371.2		354.1
including Mobile Interconnect	38.1		37.7		45.3		50.4		47.0		53.3		66.2		63.7
Mobile OIBDA	73.8		98.4		124.5		122.4		112.8		134.7		143.6		149.1
Mobile OIBDA, %	41.8	%	43.8	%	46.4	%	44.0	%	41.7	%	42.2	%	38.7	%	42.1	%

Subscribers (‘000)	7,153		7,562		8,884		9,519		10,214		11,222		12,665		13,352

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	34.2		35.2		37.6		36.3		47.0		74.1		78.6		73.0
including business segment	0.0		0.0		0.0		0.0		6.5		20.1		22.1		18.0
including wholesale segment	0.0		0.0		0.0		0.0		3.8		14.2		17.4		16.4
including residential segment	34.2		35.2		37.6		36.3		36.7		39.8		39.1		38.6
Fixed OIBDA	16.2		18.5		19.5		22.8		21.5		29.7		31.1		30.2
Fixed OIBDA, %	47.4	%	52.6	%	51.9	%	62.8	%	45.7	%	40.1	%	39.6	%	41.4	%

Broadband subscribers (‘000)	0		0		0		0		12		13		16		24
Broadband services ARPU, blended, US$	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
OIBDA	90.0		116.9		144.0		145.2		134.3		164.4		174.7		179.3
Depreciation	(36.5	)	(44.9	)	(35.7	)	(62.8	)	(69.7	)	(75.3	)	(67.6	)	(85.2	)
Amortization	(24.8	)	(25.4	)	(26.2	)	(25.5	)	(32.3	)	(39.3	)	(44.7	)	(42.7	)
Impairment loss	0		0		0		0		0		0		0		(90.1	)
Operating income	28.7		46.6		82.1		56.9		32.3		49.8		62.4		(38.7	)

OIBDA margin total	42.7	%	44.9	%	47.1	%	46.2	%	42.3	%	42.4	%	39.7	%	42.7	%
Less: Depreciation as a percentage of net operating revenues	(17.3	%)	(17.2	%)	(11.6	%)	(20.0	%)	(21.9	%)	(19.5	%)	(15.3	%)	(20.2	%)
Less: Amortization as a percentage of net operating revenues	(11.8	%)	(9.8	%)	(8.6	%)	(8.1	%)	(10.2	%)	(10.1	%)	(10.2	%)	(10.2	%)
Less: Impairment loss as a percentage of net operating revenues	0		0		0		0		0		0		0		(21.5	%)
Operating income as a percentage of net operating revenues	13.6	%	17.9	%	26.9	%	18.1	%	10.2	%	12.8	%	14.2	%	(9.2	%)

Kazakhstan

(in US$ millions, unless stated otherwise)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	119.4		149.3		167.1		174.6		162.8		185.3		198.6		196.9
Gross margin	88.2		112.0		122.1		128.4		118.9		140.8		152.6		148.8
Gross margin, %	73.9	%	75.0	%	73.1	%	73.5	%	73.0	%	76.0	%	76.8	%	75.6	%
OIBDA	62.0		80.3		88.1		92.2		82.0		96.4		106.1		97.7
OIBDA, %	51.9	%	53.8	%	52.7	%	52.8	%	50.4	%	52.0	%	53.4	%	49.6	%
SG&A	25.4		31.7		32.7		33.8		34.8		43.5		45.9		50.4
including Sales & Marketing Expenses	11.0		14.2		13.8		17.1		12.9		15.1		17.6		22.7
including advertising	3.7		4.5		5.0		5.5		4.7		5.8		5.5		8.8
including General & Administrative Costs	14.4		17.5		18.9		16.7		21.9		28.4		28.3		27.7
SG&A, %	21.3	%	21.2	%	19.6	%	19.4	%	21.4	%	23.5	%	23.1	%	25.6	%
Net income (loss)	13.1		16.4		21.7		19.8		14.1		19.5		29.9		76.4
Capital Expenditures	31.2		45.8		40.5		96.4		42.6		55.4		77.1		79.7

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	119.4		149.3		167.1		174.6		162.1		182.5		195.9		193.7
including Mobile Interconnect	20.5		26.5		28.5		33.0		28.4		30.9		32.2		31.4
Mobile OIBDA	62.0		80.3		88.1		92.2		81.6		94.2		102.9		93.8
Mobile OIBDA, %	51.9	%	53.8	%	52.7	%	52.8	%	50.3	%	51.6	%	52.5	%	48.4	%

Subscribers (‘000)	3,501		3,858		4,343		4,604		4,777		5,098		5,614		6,270
ARPU, US$	12.2		13.6		13.6		13.0		11.6		12.3		12.1		10.8
MOU, min	72.3		88.8		112.7		98.9		99.1		109.7		108.1		100.5
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		9.8	%	9.5	%	7.6	%	7.4	%	7.3	%
Subscriber market share, %	50.2	%	49.3	%	47.3	%	46.5	%	39.5	%	39.6	%	41.2	%	43.4	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	0		0		0		0		1.1		4.9		6.0		7.1
including business segment	0		0		0		0		0.3		1.0		0.8		1.0
including wholesale segment	0		0		0		0		0.8		3.9		5.2		6.0
including residential segment	0		0		0		0		0		0		0.003		0.05
Fixed OIBDA	0		0		0		0		0.4		2.2		3.2		3.9
Fixed OIBDA, %	0		0		0		0		36.4	%	44.9	%	53.3	%	54.9	%

Broadband subscribers (‘000)	0		0		0		0		0		0		0		0
Broadband services ARPU, blended, US$	0		0		0		0		0		0		0		0

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
OIBDA	62.0		80.3		88.1		92.2		82.0		96.4		106.1		97.7
Depreciation	(15.9	)	(17.5	)	(14.9	)	(20.2	)	(21.6	)	(25.7	)	(24.0	)	(28.7	)
Amortization	(9.2	)	(9.5	)	(9.1	)	(9.7	)	(9.7	)	(11.1	)	(15.9	)	(16.0	)
Operating income	36.9		53.3		64.1		62.3		50.7		59.6		66.2		53

OIBDA margin total	51.9	%	53.8	%	52.7	%	52.8	%	50.4	%	52.0	%	53.4	%	49.6	%
Less: Depreciation as a percentage of net operating revenues	(13.3	%)	(11.7	%)	(8.9	%)	(11.5	%)	(13.3	%)	(13.8	%)	(12.1	%)	(14.6	%)
Less: Amortization as a percentage of net operating revenues	(7.7	%)	(6.4	%)	(5.4	%)	(5.6	%)	(6.0	%)	(6.0	%)	(8.0	%)	(8.1	%)
Operating income as a percentage of net operating revenues	30.9	%	35.7	%	38.4	%	35.7	%	31.1	%	32.2	%	33.3	%	26.9	%

Ukraine

(in US$ millions, unless stated otherwise)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	16.3		23.8		37.0		34.5		44.8		71.2		94.2		70.5
Gross margin	9.5		13.5		23.3		20.9		26.7		39.5		31.6		33.9
Gross margin, %	58.3	%	56.7	%	63.0	%	60.6	%	59.6	%	55.5	%	33.5	%	48.1	%
OIBDA	-6.5		-3.1		6.5		3.6		3.2		9.4		-1.6		11.6
OIBDA, %	n/a		n/a		17.6	%	10.4	%	7.1	%	13.2	%	n/a		16.5	%
SG&A	16.0		16.5		16.5		17.5		23.4		30.0		32.7		21.6
including Sales & Marketing Expenses	5.8		5.5		5.3		5.2		6.7		7.9		8.7		4.7
including advertising	3.9		3.7		2.7		3.5		4.7		5.1		4.5		1.9
including General & Administrative Costs	10.2		11.0		11.2		12.3		16.7		22.1		24.0		16.9
SG&A, %	98.2	%	69.3	%	44.6	%	50.7	%	52.2	%	42.1	%	34.7	%	30.6	%
Net income (loss)	-18.4		-17.2		-6.4		-17.6		-19.7		-5.8		-36.7		-323.1
Capital Expenditures	29.3		46.0		26.0		55.2		26.6		54.1		46.9		57.8

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	16.3		23.8		37.0		34.5		36.4		45.7		68.2		47.5
including Mobile Interconnect	5.4		7.6		10.9		10.9		11.5		13.4		20.0		14.8
Mobile OIBDA	-6.5		-3.1		6.5		3.6		1.1		2.5		-8.9		5.7
Mobile OIBDA, %	n/a		n/a		17.6	%	10.4	%	3.0	%	5.5	%	n/a		12.0	%

Subscribers (‘000)	1,953		1,822		2,212		1,941		1,971		2,111		2,403		2,052
ARPU, US$	3.0		4.2		5.8		5.6		6.1		7.5		9.7		7.0
MOU, min	138.0		159.9		168.2		183.2		210.2		231.0		261.5		230.0
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		35.8	%	20.1	%	16.9	%	15.9	%	32.2	%
Subscriber market share, %	4.5	%	5.2	%	5.1	%	4.8	%	3.5	%	3.8	%	4.3	%	3.6	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	0		0		0		0		8.9		28.4		32.5		26.4
including business segment	0		0		0		0		5.5		16.9		19.0		14.8
including wholesale segment	0		0		0		0		3.0		10.2		12.2		10.2
including residential segment	0		0		0		0		0.4		1.3		1.4		1.4
Fixed OIBDA	0		0		0		0		2.1		6.9		7.3		5.9
Fixed OIBDA, %	0		0		0		0		23.6	%	24.3	%	22.5	%	22.3	%
Broadband subscribers (‘000)	0		0		0		0		12		13		16		24
Broadband services ARPU, blended, US$	0		0		0		0		15.0		15.4		15.7		13.5

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
OIBDA	(6.5	)	(3.1	)	6.5		3.6		3.2		9.4		(1.6	)	11.6
Depreciation	(3.2	)	(4.3	)	(4.5	)	(13.0	)	(11.2	)	(15.0	)	(18.0	)	(14.9	)
Amortization	(5.2	)	(5.2	)	(5.2	)	(3.1	)	(7.2	)	(12.4	)	(12.8	)	(10.3	)
Impairment loss	—		—		—		—		—		—		—		(90.1	)
Operating income	(14.9	)	(12.6	)	(3.2	)	(12.5	)	(15.2	)	(18.0	)	(32.4	)	(103.7	)

OIBDA margin total	n/a		n/a		17.6	%	10.4	%	7.1	%	13.2	%	n/a		16.5	%
Less: Depreciation as a percentage of net operating revenues	n/a		n/a		(12.1	)%	(37.6	)%	(24.9	)%	(21.1	)%	n/a		(21.2	)%
Less: Amortization as a percentage of net operating revenues	n/a		n/a		(14.1	)%	(9.0	)%	(16.1	)%	(17.4	)%	n/a		(14.6	)%
Less: Impairment loss as a percentage of net operating revenues	n/a		n/a		0.0	%	0.0	%	0.0	%	0.0	%	n/a		(127.8	)%
Operating income as a percentage of net operating revenues	n/a		n/a		(8.6	)%	(36.2	)%	(33.9	)%	(25.3	)%	n/a		(147.1	)%

Uzbekistan

(in US$ millions, unless stated otherwise)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	18.2		23.2		30.2		36.5		39.5		52.0		58.4		66.5
Gross margin	15.2		20.0		25.8		31.0		33.4		43.0		48.6		52.8
Gross margin, %	83.5	%	86.2	%	85.4	%	84.9	%	84.6	%	82.7	%	83.2	%	79.4	%
OIBDA	8.7		11.4		16.9		17.8		20.9		27.8		33.0		34.2
OIBDA, %	47.8	%	49.1	%	56.0	%	48.8	%	52.9	%	53.5	%	56.5	%	51.4	%
SG&A	6.4		8.4		8.7		13.1		12.3		14.9		15.4		18.3
including Sales & Marketing Expenses	2.8		2.5		3.9		5.3		4.9		5.1		6.6		7.1
including advertising	0.7		0.9		1.1		1.4		2.0		1.9		2.3		2.3
including General & Administrative Costs	3.6		5.9		4.8		7.8		7.4		9.8		8.8		11.2
SG&A, %	35.2	%	36.2	%	28.8	%	35.9	%	31.1	%	28.7	%	26.4	%	27.5	%
Net income (loss)	2.5		4.3		6.9		6.0		7.5		14.4		22.0		11.8
Capital Expenditures	7.9		18.5		23.8		83.6		48.0		82.8		28.4		17.2

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	18.2		23.2		30.2		36.5		38.7		49.5		55.5		63.5
including Mobile Interconnect	0.002		0.003		0.004		0.005		0.006		0.009		0.010		3.418
Mobile OIBDA	8.7		11.4		16.9		17.8		20.6		27.2		32.0		33.0
Mobile OIBDA, %	47.8	%	49.1	%	56.0	%	48.8	%	53.2	%	54.9	%	57.7	%	52.0	%

Subscribers (‘000)	1,106.3		1,192.4		1,586.9		2,119.6		2,422.2		2,754.2		3,148.0		3,636.2
ARPU, US$	6.7		7.2		7.6		6.8		5.8		6.6		6.5		6.5
MOU, min	242.2		265.6		289.8		283.4		265.3		294.6		298.5		288.6
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		11.2	%	12.8	%	13.1	%	14.2	%	14.9	%
Subscriber market share, %	33.1	%	32.7	%	35.6	%	37.3	%	33.6	%	31.2	%	29.8	%	29.6	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	0		0		0		0		0.8		2.6		2.9		3.0
including business segment	0		0		0		0		0.7		2.3		2.3		2.2
including wholesale segment	0		0		0		0		0.03		0.1		0.1		0.1
including residential segment	0		0		0		0		0.06		0.2		0.5		0.7
Fixed OIBDA	0		0		0		0		0.3		0.6		1.0		1.2
Fixed OIBDA, %	0		0		0		0		37.5	%	23.1	%	34.5	%	40.0	%
Broadband subscribers (‘000)	0		0		0		0		0		0		0		0
Broadband services ARPU, blended, US$	0		0		0		0		0		0		0		0

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
OIBDA	8.7		11.4		16.9		17.8		20.9		27.8		33.0		34.2
Depreciation	(3.1	)	(3.3	)	(4.0	)	(5.1	)	(6.7	)	(6.8	)	(7.2	)	(8.9	)
Amortization	(3.4	)	(3.4	)	(3.4	)	(3.5	)	(3.8	)	(3.7	)	(3.8	)	(4.6	)
Operating income	2.2		4.7		9.5		9.2		10.4		17.3		22.0		20.7

OIBDA margin total	47.8	%	49.1	%	56.0	%	48.8	%	52.9	%	53.5	%	56.5	%	51.4	%
Less: Depreciation as a percentage of net operating revenues	(17.0	)%	(14.1	)%	(13.2	)%	(14.0	)%	(17.0	)%	(13.1	)%	(12.3	)%	(13.4	)%
Less: Amortization as a percentage of net operating revenues	(18.7	)%	(14.7	)%	(11.3	)%	(9.6	)%	(9.6	)%	(7.1	)%	(6.5	)%	(6.9	)%
Operating income as a percentage of net operating revenues	12.1	%	20.3	%	31.5	%	25.2	%	26.3	%	33.3	%	37.7	%	31.1	%

Armenia

(in US$ millions, unless stated otherwise)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	54.1		58.4		63.4		59.8		59.1		64.7		68.8		63.7
Gross margin	42.4		46.0		49.8		47.3		45.8		50.0		52.6		48.7
Gross margin, %	78.4	%	78.8	%	78.5	%	79.1	%	77.5	%	77.3	%	76.5	%	76.5	%
OIBDA	27.3		30.1		32.9		32.5		29.1		30.3		33.5		31.7
OIBDA, %	50.5	%	51.5	%	51.9	%	54.3	%	49.2	%	46.8	%	48.7	%	49.8	%
SG&A	14.2		14.8		15.9		13.4		16.7		18.7		18.5		16.7
including Sales & Marketing Expenses	1.7		2.2		2.4		3.5		2.7		3.8		3.7		2.5
including advertising	0.6		0.8		0.8		1.7		1.2		1.6		1.1		1.2
including General & Administrative Costs	12.5		12.6		13.5		9.9		14.0		14.9		14.8		14.2
SG&A, %	26.2	%	25.3	%	25.1	%	22.4	%	28.3	%	28.9	%	26.9	%	26.2	%
Net income (loss)	2.6		4.0		16.0		0.3		-15.0		-1.3		3.7		-12.0
Capital Expenditures	5.4		20.4		20.7		44.3		14.6		20.9		19.1		23.7

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	19.9		23.2		25.8		23.5		22.9		26.4		31.6		27.2
including Mobile Interconnect	12.0		3.2		4.1		4.2		4.5		5.3		8.0		7.1
Mobile OIBDA	11.1		11.6		13.4		9.7		10.4		10.3		13.9		12.5
Mobile OIBDA, %	55.8	%	50.0	%	51.9	%	41.3	%	45.4	%	39.0	%	44.0	%	46.0	%

Subscribers (‘000)	439.9		471.0		447.0		442.4		520.4		654.5		783.6		544.3
ARPU, US$	14.5		17.3		17.6		17.4		16.1		15.3		13.9		13.6
MOU, min	141.3		185.1		181.0		171.8		158.9		164.9		139.9		150.0
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		12.3	%	28.8	%	13.1	%	18.5	%	45.7	%
Subscriber market share, %	37.3	%	33.5	%	33.6	%	26.1	%	26.9	%	30.5	%	30.5	%	21.2	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	34.2		35.2		37.6		36.3		36.2		38.3		37.2		36.5
including business segment	0.0		0.0		0.0		0.0		0.0		0.0		0.0		0.0
including wholesale segment	0.0		0.0		0.0		0.0		0.0		0.0		0.0		0.0
including residential segment	34.2		35.2		37.6		36.3		36.2		38.3		37.2		36.5
Fixed OIBDA	16.2		18.5		19.5		22.8		18.7		20.0		19.6		19.2
Fixed OIBDA, %	47.4	%	52.6	%	51.9	%	62.8	%	51.7	%	52.2	%	52.7	%	52.6	%

Broadband subscribers (‘000)	0		0		0		0		0		0		0		0
Broadband services ARPU, blended, US$	0		0		0		0		0		0		0		0

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
OIBDA	27.3		30.1		32.9		32.5		29.1		30.3		33.5		31.7
Depreciation	(13.9	)	(18.7	)	(10.6	)	(21.9	)	(27.0	)	(22.8	)	(13.2	)	(26.4	)
Amortization	(5.9	)	(5.9	)	(7.0	)	(7.7	)	(10.1	)	(9.8	)	(10.0	)	(9.9	)
Operating income	7.5		5.5		15.3		2.9		(8.0	)	(2.3	)	10.3		(4.6	)

OIBDA margin total	50.5	%	51.5	%	51.9	%	54.3	%	49.2	%	46.8	%	48.7	%	49.8	%
Less: Depreciation as a percentage of net operating revenues	(25.7	)%	(32.0	)%	(16.8	)%	(36.6	)%	(45.6	)%	(35.3	)%	(19.2	)%	(41.5	)%
Less: Amortization as a percentage of net operating revenues	(10.9	)%	(10.1	)%	(11.0	)%	(12.9	)%	(17.1	)%	(15.1	)%	(14.5	)%	(15.5	)%
Operating income as a percentage of net operating revenues	13.9	%	9.4	%	24.1	%	4.8	%	(13.5	)%	(3.6	)%	15.0	%	(7.2	)%

Tajikistan

(in US$ millions, unless stated otherwise)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	2.9		5.2		7.7		8.1		8.4		11.2		14.8		16.4
Gross margin	1.6		3.2		5.2		5.1		5.2		7.2		10.0		11.5
Gross margin, %	55.2	%	61.5	%	67.5	%	63.0	%	61.9	%	64.3	%	67.6	%	70.1	%
OIBDA	-0.3		0.1		1.6		1.4		1.3		2.6		4.8		5.3
OIBDA, %	n/a		1.9	%	20.8	%	17.3	%	15.5	%	23.2	%	32.4	%	32.3	%
SG&A	1.9		3.1		3.5		3.5		4.0		4.5		5.2		6.2
including Sales & Marketing Expenses	0.8		1.3		1.5		1.4		1.2		1.4		1.7		1.7
including advertising	0.3		0.7		0.5		0.5		0.6		0.6		0.5		0.5
including General & Administrative Costs	1.1		1.8		2.0		2.1		2.8		3.1		3.5		4.5
SG&A, %	65.5	%	59.6	%	45.5	%	43.2	%	47.6	%	40.2	%	35.1	%	37.8	%
Net income (loss)	-1.0		-1.8		-0.3		-2.5		-1.2		-3.0		-0.3		-0.7
Capital Expenditures	13.5		5.7		6.1		20.2		7.2		13.5		6.4		18.0

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	2.9		5.2		7.7		8.1		8.4		11.2		14.8		16.4
including Mobile Interconnect	0.2		0.4		1.7		2.1		2.0		2.9		4.7		5.4
Mobile OIBDA	-0.3		0.1		1.6		1.4		1.3		2.6		4.8		5.3
Mobile OIBDA, %	n/a		1.9	%	20.8	%	17.3	%	15.5	%	23.2	%	32.4	%	32.3	%

Subscribers (‘000)	145.3		204.9		268.4		339.4		377.9		435.3		526.6		624.6
ARPU, US$	8.7		10.1		10.8		9.0		8.0		9.4		10.4		9.6
MOU, min	205.8		224.2		230.3		216.3		205.8		241.1		255.9		243.4
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		5.3	%	8.6	%	9.7	%	10.6	%	12.7	%
Subscriber market share, %	11.2	%	15.2	%	16.7	%	18.1	%	16.5	%	17.4	%	18.3	%	18.3	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	0		0		0		0		0		0		0		0
including business segment	0		0		0		0		0		0		0		0
including wholesale segment	0		0		0		0		0		0		0		0
including residential segment	0		0		0		0		0		0		0		0
Fixed OIBDA	0		0		0		0		0		0		0		0
Fixed OIBDA, %	0		0		0		0		0		0		0		0

Broadband subscribers (‘000)	0		0		0		0		0		0		0		0
Broadband services ARPU, blended, US$	0		0		0		0		0		0		0		0


Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
OIBDA	(0.3	)	0.1		1.6		1.4		1.3		2.6		4.8		5.3
Depreciation	(0.3	)	(0.6	)	(0.9	)	(1.5	)	(1.7	)	(3.1	)	(3.1	)	(3.5	)
Amortization	(0.2	)	(0.2	)	(0.2	)	(0.2	)	(0.2	)	(0.3	)	(0.2	)	(0.2	)
Operating income	(0.8	)	(0.7	)	0.5		(0.3	)	(0.6	)	(0.8	)	1.5		1.6

OIBDA margin total	n/a		1.9	%	20.8	%	17.3	%	15.5	%	23.2	%	32.4	%	32.3	%
Less: Depreciation as a percentage of net operating revenues	n/a		(11.6	)%	(11.7	)%	(18.5	)%	(20.2	)%	(27.6	)%	(20.9	)%	(21.3	)%
Less: Amortization as a percentage of net operating revenues	n/a		(3.8	)%	(2.6	)%	(2.5	)%	(2.4	)%	(2.7	)%	(1.4	)%	(1.2	)%
Operating income as a percentage of net operating revenues	n/a		(13.5	)%	6.5	%	(3.7	)%	(7.1	)%	(7.1	)%	10.1	%	9.8	%

Georgia

(in US$ millions, unless stated otherwise)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	0.0		0.2		0.3		0.9		2.4		3.9		5.4		5.9
Gross margin	0.0		0.0		0.0		0.2		0.8		1.6		2.6		2.6
Gross margin, %	n/a		n/a		10.0	%	26.7	%	33.3	%	41.0	%	48.1	%	44.1	%
OIBDA	-1.2		-1.9		-2.0		-2.3		-2.2		-2.1		-1.1		-1.2
OIBDA, %	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a
SG&A	1.2		1.9		2.1		2.6		3.0		3.7		3.7		3.8
including Sales & Marketing Expenses	0.2		0.3		0.4		0.6		0.6		0.6		0.8		0.9
including advertising	0.0		1.2		0.3		0.4		0.3		0.4		0.6		0.6
including General & Administrative Costs	1.0		1.6		1.7		2.0		2.4		3.1		2.9		2.9
SG&A, %	n/a		950.0	%	700.0	%	288.9	%	125.0	%	94.9	%	68.5	%	64.4	%
Net income (loss)	-1.9		-2.0		-2.3		-1.4		0.1		-1.5		-5.3		-30.7
Capital Expenditures	16.6		9.4		4.8		28.9		7.0		12.2		8.9		7.1

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	0.03		0.2		0.3		0.9		2.4		3.9		5.4		5.9
including Mobile Interconnect	0		0		0.1		0.2		0.6		0.9		1.3		1.5
Mobile OIBDA	-1.2		-1.9		-2.0		-2.3		-2.2		-2.1		-1.1		-1.2
Mobile OIBDA, %	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a

Subscribers (‘000)	7.3		14.0		26.6		72.7		146.2		168.6		189.0		225.1
ARPU, US$	3.2		4.8		6.3		9.0		7.4		8.2		9.9		9.7
MOU, min	47.9		82.5		85.1		121.5		87.1		89.3		109.8		129.8
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		17.6	%	1.4	%	16.8	%	13.8	%	11.7	%
Subscriber market share, %	0.4	%	0.8	%	1.6	%	3.5	%	4.7	%	4.9	%	5.3	%	6.0	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues	0		0		0		0		0		0		0		0
including business segment	0		0		0		0		0		0		0		0
including wholesale segment	0		0		0		0		0		0		0		0
including residential segment	0		0		0		0		0		0		0		0
Fixed OIBDA	0		0		0		0		0		0		0		0
Fixed OIBDA, %	0		0		0		0		0		0		0		0

Broadband subscribers (‘000)	0		0		0		0		0		0		0		0
Broadband services ARPU, blended, US$	0		0		0		0		0		0		0		0



Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008
OIBDA	(1.2	)	(1.9	)	(2.0	)	(2.3	)	(2.2	)	(2.1	)	(1.1	)	(1.2	)
Depreciation	(0.1	)	(0.5	)	(0.8	)	(1.1	)	(1.5	)	(1.9	)	(2.1	)	(2.7	)
Amortization	(0.9	)	(1.2	)	(1.3	)	(1.3	)	(1.3	)	(2.0	)	(2.0	)	(1.8	)
Operating income	(2.2	)	(3.6	)	(4.1	)	(4.7	)	(5.0	)	(6.0	)	(5.2	)	(5.7	)

OIBDA margin total	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a
Less: Depreciation as a percentage of net operating revenues	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a
Less: Amortization as a percentage of net operating revenues	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a
Operating income as a percentage of net operating revenues	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a

Other

(in US$ millions, unless stated otherwise)


CONSOLIDATED	Q1 2007	Q2 2007	Q3 2007	Q4 2007	Q1 2008	Q2 2008	Q3 2008	Q4 2008
Net operating revenues	0	0	0	0	0.0	0.0	0.0	0.0
Gross margin	0	0	0	0	0.0	0.0	0.0	0.0
Gross margin, %	0	0	0	0	n/a	n/a	n/a	n/a
OIBDA	0	0	0	0	-1.0	-1.6	-2.2	-3.3
OIBDA, %	0	0	0	0	n/a	n/a	n/a	n/a
SG&A	0	0	0	0	0.9	1.4	2.1	3.2
including Sales & Marketing Expenses	0	0	0	0	0.0	0.0	0.0	0.1
including advertising	0	0	0	0	0.0	0.0	0.0	0.0
including General & Administrative Costs	0	0	0	0	0.0	0.0	0.0	3.1
SG&A, %	0	0	0	0	n/a	n/a	n/a	n/a
Net income (loss)	0	0	0	0	-0.8	-1.5	-3.5	-92.3
Capital Expenditures	0	0	0	0	5.4	1.4	2.0	10.5

MOBILE	Q1 2007	Q2 2007	Q3 2007	Q4 2007	Q1 2008	Q2 2008	Q3 2008	Q4 2008
Net operating revenues	0	0	0	0	0	0	0	0
including Mobile Interconnect	0	0	0	0	0	0	0	0
Mobile OIBDA	0	0	0	0	0	0	0	0
Mobile OIBDA, %	0	0	0	0	0	0	0	0

Subscribers (‘000)	0	0	0	0	0	0	0	0
ARPU, US$	0	0	0	0	0	0	0	0
MOU, min	0	0	0	0	0	0	0	0
Churn 3 months active base (quarterly), %	0	0	0	0	0	0	0	0
Subscriber market share, %	0	0	0	0	0	0	0	0

FIXED	Q1 2007	Q2 2007	Q3 2007	Q4 2007	Q1 2008	Q2 2008	Q3 2008	Q4 2008
Net operating revenues	0	0	0	0	0	0	0	0
including business segment	0	0	0	0	0	0	0	0
including wholesale segment	0	0	0	0	0	0	0	0
including residential segment	0	0	0	0	0	0	0	0
Fixed OIBDA	0	0	0	0	0	0	0	0
Fixed OIBDA, %	0	0	0	0	0	0	0	0

Broadband subscribers (‘000)	0	0	0	0	0	0	0	0
Broadband services ARPU, blended, US$	0	0	0	0	0	0	0	0


OTHER	Q1 2007	Q2 2007	Q3 2007	Q4 2007	Q1 2008		Q2 2008		Q3 2008		Q4 2008
Net operating revenues					0.0		0.0		0.0		0.0
OIBDA					-1.0		-1.6		-2.2		-3.3
OIBDA, %					n/a		n/a		n/a		n/a
					0		0		0		0

Reconciliation of OIBDA total	Q1 2007	Q2 2007	Q3 2007	Q4 2007	Q1 2008		Q2 2008		Q3 2008		Q4 2008
OIBDA	0	0	0	0	(1.0	)	(1.6	)	(2.2	)	(3.3	)
Depreciation	0	0	0	0	(0.0	)	0.0		(0.1	)	(0.1	)
Amortization	—	—	—	—	—		—		—		—
Impairment loss	—	—	—	—	—		0.0		0.0		(37.6	)
Operating income	0	0	0	0	(1.0	)	(1.6	)	(2.3	)	(41.0	)

OIBDA margin total	n/a	n/a	n/a	n/a	n/a		n/a		n/a		n/a
Less: Depreciation as a percentage of net operating revenue	n/a	n/a	n/a	n/a	n/a		n/a		n/a		n/a
Less: Amortization as a percentage of net operating revenue	n/a	n/a	n/a	n/a	n/a		n/a		n/a		n/a
Less: Impairment loss	n/a	n/a	n/a	n/a	n/a		n/a		n/a		n/a
Operating income as a percentage of net operating revenue	n/a	n/a	n/a	n/a	n/a		n/a		n/a		n/a