ARMENTEL'S INVESTMENTS IN ARMENIA $35.5MLN IN 1ST HALF 2008

ARKA
Sep 1, 2008

YEREVAN, September 1. /ARKA/. The ArmenTel Company's (Beeline brand)
investments in Armenia reached $35.5mln in the first half 2008. The
company's press service reports that ArmenTel's clients had numbered
655,000 by June 30, 2008, - a 26% increase in the 2nd quarter 2008
as compared with the corresponding period last year.

ArmenTel's operating income before depreciation and amortization
(OIBDA) totaled $30.5mln in the 2nd quarter 2008, the shares of mobile
communication and fixed-line communications being $10.3mln and $20mln
respectively - a 4.1% increase as compared with the 1st quarter 2008.

In the 1st quarter 2008, the net operating income of the VimpelCom
Company (sole owner of the ArmenTel CJSC) totaled $64.7mln - a 10.8%
increase as compared with the corresponding period last year, and a
9.5% increase against the 1st quarter 2008.

In the 2nd quarter 2008, the company recorded a 3.8% increase in
the average MOU (monthly output per user) against the 1st quarter -
164.9 min.

The average revenue per user (ARPU) reached $15.3.