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25 Jul 2000

VimpelCom announces sale of American depository shares and guaranteed convertible notes

Moscow and New York (July 25, 2000) - Open Joint Stock Company "Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP), a leading provider of mobile telecommunications services in Russia, announced today the sale of 4,417,192 American Depositary Shares ("ADSs") at $215/8 per ADS, the closing market price of VimpelCom's ADS on July 24, 2000, and $68,000,000 aggregate principal amount of 5.5% Guaranteed Convertible Notes due 2005. In addition, VimpelCom announced the sale of 2,400,532 ADSs at $215/8 per ADS to its strategic investor Telenor Invest AS.

UBS Warburg acted as sole bookrunner and lead manager and Donaldson, Lufkin & Jenrette and Morgan Stanley Dean Witter as joint lead managers of the public offerings. Troika Dialog, a Russian investment bank, acted as financial adviser to VimpelCom.

VimpelCom is a leading wireless telecommunications service company in Russia, operating under the "Bee Line" family of brand names, which are among the most recognized brand names in Russia. VimpelCom's license portfolio covers approximately 70% of Russia's population (100 million people), including the City of Moscow and the Moscow Region, which is the Company's primary market. 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." VimpelCom's newly issued ADSs are listed on the NYSE under the temporary symbol "VIPT," and its convertible notes are listed on the NYSE under the symbol "VIP0A05."


This press release contains "forward-looking statements," as that phrase is defined in Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements relate to the Company's development and 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 unforeseen developments from competition, governmental regulations of the wireless telecommunications industry, general political uncertainties in Russia and general economic developments in Russia and other factors. As a result of such risks and uncertainties, there can be no assurance that the effects of competition or current or future changes in the political, economic and social environment or current or future regulation of the Russian telecommunications industry 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, 1999 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:
Valery Goldin
VimpelCom (Moscow)
7(095) 974-5888

Sigrid Peterson
Edelman Financial Worldwide
1(212) 704 8284