Framgang i samtalene mellom Telenor og VimpelCom om kjøpet av Kyivstar

(22. mai 2006, Fornebu) I to separate møter med ledelsen i VimpelCom og Altimo om det foreslåtte VimpelCom-oppkjøpet av det ukrainske mobilselskapet Kyivstar har Telenor nok en gang sagt seg villig til å selge sin 56,5 prosents andel i Kyivstar til VimpelCom. Telenor har samtidig indikert mulig fleksibilitet når det gjelder oppgjørsform fra VimpelCom, forutsatt at det foreligger en avtale med Altimo om en separasjonsmekanisme og at russiske antimonopol-myndigheter (FAS) har gitt sin godkjenning. Telenor ser ingen lovlige eller formelle hindringer for å godkjenne en økning i eksisterende eierandel i VimpelCom, slik at en separasjonsmekanisme kan komme på plass.

“Både Telenor og VimpelCom håper å komme til enighet om vilkår knyttet til denne transaksjonen i nær framtid,” sier Jan Edvard Thygesen, konserndirektør og leder for Telenors operasjoner i Sentral- og Øst-Europa. “Slik vi ser det, gjenstår bare to hindringer i samtalene med VimpelCom og Altimo; en endelig avtale med Alfa om separasjonsmekanismen og en FAS-godkjenning som vil gjøre det mulig for Telenor og Alfa å anskaffe ytterligere andeler i VimpelCom. Vi håper begge disse sakene kan bli løst raskt og vi er glade for at VimpelComs ledelse deler dette synet.”

Telenor offentliggjør samtidig et brev til Altimo datert den 10. mai 2006, som inkluderer detaljer om transaksjonsprisen og prosessen, forholdet til minoritetsaksjonærene, hvordan separasjonsmekanismen utløses og behov for godkjenning hos FAS. Brevet innholder detaljerte vilkårskrav med blant annet en beskrivelse av en auksjonsliknende separasjonsprosedyre og en obligatorisk utvidelse av den vinnende tilbudsprisen til alle VimpelComs aksjonærer. “Liknende separasjonsmekanismer har vært brukt tidligere, og Alfa skulle ikke være ukjent med slike arrangement,” sier Thygesen. “Det har vært flere positive møter og korrespondanse mellom Telenor og Alfa siden 20. mars og det er gjort betydelig framgang når det gjelder prinsippet om en separasjonsmekanisme. Dersom Altimo fortsetter å vise den samme gode vilje i framtidige møter, tror vi en avtale om utestående saker kan være nært forestående.”

Telenors foreslåtte separasjonsmekanisme er basert på følgende prinsipper:

• En åpen og transparent prosess

• En minste tilbudspris ikke lavere enn et seks måneders vektet gjennomsnitt av VimpelComs aksjepris

• En gjentatt budrunde der høyeste tilbud vinner

• Vinneren av budrunden må også tilby all øvrige aksjonærer å kjøpe deres aksjer til en pris som ikke er lavere enn vinnerbudet

• Separasjonsmekanismen kan trigges uten vilkår av begge parter når som helst etter gjennomføringen av Kyivstar-transaksjonen

• FAS-godkjenning er gitt og forblir gyldig

Telenor mener at å sette vilkår for retten til å utløse en separasjonsmekanisme vil skape et incentiv til at den ene parten kan blokkere en rettmessig separasjon ved å hevde at vilkårene for utøvelsen ikke er blitt møtt. “Vår posisjon er ikke et ønske om å utløse en eparasjone i seg selv, men vi er ikke parat til å legge Kyivstar på bordet med mindre aksjonærforholdene i VimpelCom bringes permanent i orden gjennom å etablere en separasjonsmekanisme. Det er grunnen til at dette er et viktig vilkår for oss,” sier Thygesen.

Dag Melgaard, pressetalsmann, Telenor ASA, tlf: (+47) 901 92 000, epost:

Kjell Morten Johnsen, Senior Vice President og leder av Telenor Russia, tlf: (+47) 907 39 887, epost:

Altimo

11 Savvinskaya nab.

Moscow 119435

Russia

Attn: Alexei Reznikovich

Chief Executive Officer

Fornebu, May 10, 2006

Dear Alexei,

We were pleased to achieve further progress during our videoconference meeting on April 27th. In particular, with regard to the separation mechanism, your agreement to our proposal that any mechanism should be transparent, symmetrical, fair to all parties, and effective from the closing of the proposed Kyivstar transaction establishes a good basis for further discussions.

We would like to follow up on two key matters: first, the key principles and rationale of our proposed structure for the separation mechanism; and second, a more detailed timetable that mirrors the parallel discussions the parties are having with VimpelCom concerning the proposed Kyivstar transaction.

We have already highlighted that our proposed separation mechanism should be based on the following principles:

Below we elaborate on the rationale for these key principles in more detail.

With regard to the separation price and process, we believe achieving a full valuation in a transparent and fair process is clearly the most favorable outcome to all, including minorities. A multiple-round bidding process within a defined time-frame should enable us to achieve the highest value that each party is able to offer in a transparent, auction-type procedure. To ensure the bona fide nature of the bidding process, we envisage that each party would be required to put up a substantial deposit in respect of its bids, as well as represent and undertake that it is bidding for its own account and not with a view to re-sell to a third party. If the winning bidder were to breach such undertaking, it would, among other things, lose its deposit.

We also appreciate that there may be other separation mechanisms, but none appear as well-suited to the current situation and agreed principles. A roulette mechanism, which you mentioned, for example, favors the non-initiating party, and can therefore act as an incentive to try to pressure the other party to trigger by creating problems around VimpelCom’s business or governance, which is hardly something we wish to encourage. In addition, it is unlikely to achieve the same valuation as would result from a multi-round bid process.

In our meeting you raised the question of whether minorities should automatically receive the same price as may be paid by Telenor or Alfa under the separation mechanism. You asked us to consider that since Alfa and Telenor effectively control VimpelCom this could justify that a premium be paid to the selling shareholder, relative to the price offered to the minority shareholders.

As we said during our meeting, we believe that minority shareholders should benefit from a full value exit opportunity at the time of any change of control (

, same price as is paid by Alfa or Telenor), as well as have the option to remain shareholders should they choose not to sell. As you are aware, this should be the outcome under the new mandatory tender offer rules in the Joint Stock Company Law that will take effect on July 1, 2006. However, as these rules are not yet in effect, we believe an explicit agreement between Telenor and Alfa on this point is important and consistent with our agreed principle of fairness to all parties.

One of the important issues raised at our meeting was the trigger for the separation mechanism. You asked that we consider the inclusion of triggering events, which would allow either party to invoke the separation mechanism, and by way of example you referred to possible future breaches of the VimpelCom Shareholders Agreement as potential triggering events. We have given this serious consideration, and we do not believe that such a mechanism can perform its primary role- that of ensuring proper cohabitation between shareholders and avoiding the type of issues Telenor has faced in the past – unless each party knows that the other party can require a prompt separation at any time. We believe that attaching conditions to the right to trigger would create an incentive for a party to seek to block a justifiable separation event by claiming that conditions for the exercise of such trigger have not been met. You are no doubt aware of similar situations in Russia in which parties have included such conditions and litigation or arbitration has ensued over whether the separation mechanism has been legitimately triggered.

Having said this, let me emphasize that our position on the separation agreement is not driven by a desire to trigger the separation for its own sake. We would be pleased to return to a constructive partnership, but as you are aware, we are not prepared to bring Kyivstar into VimpelCom unless the shareholder issues in Vimpelcom are permanently addressed through the establishment of a separation mechanism. We trust that you will understand why this is a necessary condition for us.

The other important issue raised in our meeting was that of third party approvals. Clearly, the minority shareholder approvals of the proposed VimpelCom/Kyivstar transaction will be aided by the implementation of the separation mechanism we are proposing, because minority shareholders will know they will be treated fairly in the event of the separation mechanism being triggered. Secondly, in relation to the required FAS approval, we expect that when Alfa and Telenor have reached an agreement on a separation mechanism, such approval will be forthcoming. For the separation mechanism to be effective, such FAS approval will need to be in place.

Having now spent more time with VimpelCom and its advisers we have been able to develop parallel timetables for both the proposed VimpelCom/Kyivstar transaction and the separation mechanism between Alfa and Telenor. The key milestones are summarized below:

In our last meeting you stated that you would wish to move quickly, as we do ourselves. Please find attached our proposed term sheet regarding the separation mechanism. We look forward to receiving your prompt feedback and we hope that we can meet shortly afterwards to continue our discussions.

Yours sincerely,

Jan Edvard Thygesen

Executive Vice President

and Head of Eastern/Central Europe