• Altimo claims that Telenor is unreasonable in demanding FAS approval to buy up to 100% of VimpelCom shares

o In order for a separation mechanism to be effective, both parties involved must apply for and receive in advance approval from the Russian Federal Antimonopoly Service (FAS) to buy up to 100% of VimpelCom shares. This is due to the combined requirements of the Russian Federation Joint Stock Company Law and the Antimonopoly Law.

o Telenor has never asked for an “unlimited” FAS approval – this would be inconsistent with the RF Antimonopoly Law.

o Telenor has spoken with both VimpelCom and Altimo about the need for the three parties to approach the FAS in an organized way and demonstrate that all three are in agreement on the proposed Kyivstar transaction. Telenor believes that the FAS and the Russian government expect Altimo and VimpelCom to act in a coordinated way with Telenor on this issue.

o There is no current legal basis upon which the FAS can refuse to grant approval to Telenor’s application to acquire up to 100% of VimpelCom shares.

• Altimo claims that Telenor is undermining talks by refusing to sign a non-disclosure agreement (NDA).

o If appropriate at a future stage of negotiations, Telenor will sign an NDA. Telenor sees no need for such an agreement under the current circumstances.

o From the start, the circumstances of the proposed Kyivstar transaction have been somewhat unusual: VimpelCom's initial confidential proposal concerning the transaction was leaked to the press before Telenor even had an opportunity to respond to it. As a result, since that time, all discussions between the parties have been subject to media scrutiny.

o Telenor’s policy is to be as transparent and open about the progress of negotiations as possible in order to prevent any misinformation or misrepresentations by any party and to keep other shareholders in VimpelCom informed.

o Telenor is unwilling to enter into an NDA in a situation in which it is the only party honoring the NDA and the other party or parties are selectively leaking information to the media in order to improve their negotiating positions or score PR victories. Telenor's experience with Alfa to date has been that Alfa is willing to violate the terms of agreements to which it is a party when it suits Alfa's business purposes.

o Altimo asked for an NDA from Telenor prior to yesterday's (22 May 2006) meeting with the full knowledge that they had planned a press conference and press release BEFORE the meeting.

• Altimo refuses to accept Telenor’s proposal that no conditions be attached to or third parties be involved in the separation mechanism.

o Similar separation mechanisms have been used in other deals, and Alfa is no stranger to such arrangements

o Any conditions or involvement of third parties would give rise to an increased likelihood of lawsuits and other claims – meaning Alfa could continue to violate agreements and be confident that Telenor would not be able to trigger the separation mechanism without facing years of litigation.

o It is not Telenor’s position that the separation mechanism should be triggered simply to end our partnership with Alfa. If Alfa were to change its behavior, it is possible the parties could return to the constructive partnership that we have had in the past. But there must be structure in place to provide for a clean separation in the event this does not occur.

• Altimo claims that Telenor is pursuing “unending” lawsuits against VimpelCom and its management

o The party pursuing “unending” lawsuits has been Alfa, both in Russia and recently in Ukraine where seven different lawsuits have been initiated by various Alfa affiliates

o Telenor has launched three lawsuits against VimpelCom in connection with the URS transaction, which we believe was overpriced and lacked business merit, in addition to being authorized by a shareholder meeting convened and held in violation of Russian law and VimpelCom's charter

o We believe that unwinding the URS transaction is in the best interests of VimpelCom and its shareholders

o These lawsuits would not be necessary if Alfa and VimpelCom’s management had not violated the law and VimpelCom’s charter.

• Altimo claims that VimpelCom’s offer to buy Kyivstar will soon expire

o As Altimo is aware, large transactions of this nature are complex and require a number of steps to complete, as indicated in the tentative timetable in Telenor’s letter to Altimo dated 10 May

o No transaction can realistically be completed in “the coming days.”

o Telenor, Altimo and VimpelCom have discussed transaction roadmaps that contemplate the process taking some months

• Altimo’s spokesman says talks with Telenor have ended

o Telenor is puzzled by the statements of Altimo’s spokesman, Mr. Babaev, which are contrary to what Altimo's representatives expressed in their 22 May videoconference with Telenor. Telenor has therefore written a letter to Altimo’s management requesting clarification on this and other issues.