Subject: [NEXTEL-1] Russian network posts strong results

From: Marcel <[email-masked]>
Date: Fri, 22 Nov 2002 03:08:41 -0500

Russian network posts strong results
Russia's VimpelCom has reported net operating revenues of US$221.1 million for the first
nine months of this year, a 93.8% increase from the US$114.1 million reported for the same
period in 2001. Net income came to US$40.5 million, an increase of 191.0% from the US$13.9
million reported for the third quarter of 2001. The Company's EBITDA margin for the third
quarter of 2002 was approximately 46.4%.

As of September 30, 2002, VimpelCom had approximately 4.03 million subscribers on its
wireless networks and networks operated by VimpelCom's subsidiaries, including 3.31
million subscribers in the Moscow license area, representing a total year-to-year growth
of approximately 172%. As of today, VimpelCom's total number of subscribers is 4.52
million, with 3.53 million subscribers in the Moscow license area and 0.99 million
subscribers in the regions outside of Moscow.

Using independent sources to estimate the number of subscribers of the Company's
competitors in the Moscow license area, VimpelCom estimates that its market share in the
Moscow license area was 52.7% at the end of the third quarter of 2002, a significant
improvement compared to the Company's estimated market share of 39.8% reported at the end
of the third quarter of 2001.

Commenting on today's announcement, Jo Lunder, Chief Executive Officer of VimpelCom, said,
"We are very pleased with our third quarter results. Our growth was faster than expected
and we are confident of our ability to continue to take advantage of the great potential
of the Russian market. In addition to maintaining our strong position in Moscow, we have
made significant progress in our national expansion, and now have 34 GSM networks in
commercial operation outside of Moscow. With the recently completed second tranche of
investment in VimpelCom-Region, we expect our national expansion will continue to proceed
at a fast pace. "

The Company's financial results include the activities of VimpelCom-Region, which holds
the Company's GSM licenses for areas outside of Moscow. As in previous quarters, in the
third quarter of 2002, VimpelCom-Region's expenses exceeded its revenues as the company
continues to launch new regional networks and upgrade the existing networks in its
licensed territories.

Posted to the site on 22-Nov-02

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