VimpelCom Announces Fourth Quarter and Audited Annual 2006 Financial and Operating Results

MOSCOW and NEW YORK, April 12 /PRNewswire-FirstCall/ -- Open Joint Stock Company "Vimpel-Communications" ("VimpelCom" or the "Company") , a leading provider of wireless telecommunications services in Russia and the Commonwealth of Independent States (CIS) today announced its financial and operating results for the quarter and year ended December 31, 2006.

Attachments A, B and C present definitions for certain terms used in this press release, the condensed consolidated financial statements of VimpelCom and tables with relevant reconciliations of non-U.S. GAAP financial measures to their most directly comparable U.S. GAAP financial measures. Selected financial and operating results are also reported for each of the countries where VimpelCom was operating as of December 31, 2006.

Financial and Operating Highlights 2006 * Net operating revenues reached $4,868.0 million, an increase of 51.6% as compared with 2005. * OIBDA reached $2,451.8 million, OIBDA margin was 50.4%, an all-time record for the Company. * Net income totaled $811.5 million, an increase of 31.9% as compared with 2005. * Capital expenditures (excluding acquisitions) totaled $1,512.1 million. * Operating cash flow was $1,971.3 million, leading to the first ever positive free cash flow of $459.2 million. * Entry into the markets of Uzbekistan, Georgia and Armenia increased the population in the territories covered by the Company's license portfolio to 240 million. * Subscriber base grew to approximately 55.1 million as of December 31, 2006, including 7.0 million in the CIS countries outside of Russia. The fourth quarter of 2006 * Net operating revenues reached $1,451.4 million in the fourth quarter, a year-on-year increase of 59.4% and a quarter-on-quarter increase of 6.8%. * OIBDA reached $689.8 million, a year-on-year increase of 64.4%. * OIBDA margin was 50.3% in Russia and 47.5% for the Company. * ARPU grew to $8.9 as compared with $7.1 and $8.7 recorded for fourth quarter of 2005 and the third quarter of 2006, respectively. It was the first time ever that VimpelCom reported ARPU growth in the fourth quarter. * Net income totaled $198.0 million, a year-on-year increase of 30.4%. * Operating cash flow was $540.4 million, a year-on-year increase of 46.3%. * Market share leadership (49.5%) achieved in Kazakhstan after two full years of operations.

Commenting on today's announcement, Alexander Izosimov, Chief Executive Officer of VimpelCom, said, "2006 was another great year for VimpelCom. The Company continued to show strong revenue growth in excess of 50%, leading to almost $5 billion in turnover. We achieved a record OIBDA margin of 50.4%. Also, for the first time in its history, VimpelCom recorded positive free cash flow (before acquisitions) in the amount of $459.2 million.

"During 2006, we successfully dealt with challenges in Russia related to a more demanding competitive landscape and the introduction of a 'calling party pays' regime. We turned around the declining ARPU trend and secured ARPU growth during the last three quarters. It allowed us to maintain high growth rates in revenue and OIBDA in 2006 in spite of a greatly reduced influx of new subscribers. We expect our business in Russia to continue to expand primarily due to the increased usage of our services as living standards improve with the rapid growth of the Russian economy.

"In 2006, we added approximately 10 million new subscribers to reach the figure of 55 million. For the first time our new additions were almost equally split between Russia and the countries of the CIS, with the largest additions from Kazakhstan (1.8 million) where we became the market leader and from Ukraine (1.6 million). In the future, we expect our subscriber growth will come primarily from the countries outside of Russia."

Key Consolidated Operating Indicators Three months 4Q2006 4Q2005 Change, 3Q2006 Change, 4Q06/ 4Q06/ 4Q05 3Q06 Subscribers, end of period (EOP) 55,135,700 45,430,300 21.4% 52,381,500 5.3% % of prepaid 96.5% 96.9% 96.8% Churn, quarterly 9.0% 8.3% 9.8% ARPU (US$) 8.9 7.1 25.4% 8.7 2.3% MOU, (min) 126.5 106.5 18.8% 121.7 3.9% SAC, (US$) 17.4 14.1 23.4% 16.7 4.2% Year 2006 2005 Change, Y-on-Y Subscribers, end of period (EOP) 55,135,700 45,430,300 21.4% % of prepaid 96.5% 96.9% Churn, quarterly 35.1% 30.4% ARPU (US$) 8.0 7.5 6.7% MOU, (min) 117.9 101.4 16.3% SAC, (US$) 16.1 13.2 22.0%

High level of churn is typical for predominantly prepaid markets like Russia and the CIS. It becomes more pronounced with the reduction of gross sales in Russia.

In addressing the churn issue, the Company is focused on protecting its revenue base by employing a segmented approach with the emphasis on higher ARPU consumer segments.

Key Consolidated Financial Indicators Three months 4Q2006 4Q2005 Change, 3Q2006 Change, 4Q06/ 4Q06/ 4Q05 3Q06 Net operating revenues (US$,000) 1,451,412 910,421 59.4% 1,358,853 6.8% OIBDA (US$, 000) 689,825 419,692 64.4% 717,796 -3.9% OIBDA margin 47.5% 46.1% 52.8% Gross margin (US$, 000) 1,179,453 757,443 55.7% 1,109,219 6.3% Gross margin percentage 81.3% 83.2% 81.6% SG&A (US$, 000) 478,423 335,666 42.5% 387,236 23.5% SG&A percentage 33.0% 36.9% 28.5% Net income (US$, 000) 197,950 151,748 30.4% 268,370 -26.2% Net income per share (US$) 3.89 2.97 5.28 Net income per ADS (US$) 0.97 0.74 1.32 Year 2006 2005 Change, Y-on-Y Net operating revenues (US$,000) 4,867,978 3,211,118 51.6% OIBDA (US$, 000) 2,451,783 1,571,310 56.0% OIBDA margin 50.4% 48.9% Gross margin (US$, 000) 3,977,246 2,668,700 49.0% Gross margin percentage 81.7% 83.1% SG&A (US$, 000) 1,503,615 1,085,807 38.5% SG&A percentage 30.9% 33.8% Net income (US$, 000) 811,489 615,131 31.9% Net income per share (US$) 15.94 12.05 Net income per ADS (US$) 3.98 3.01

In 2006, VimpelCom's capital expenditures totaled $1,512.1 million (excluding acquisitions) which is $123.2 million less than capital expenditures for 2005. In the fourth quarter of 2006 VimpelCom invested approximately $534.0 million for the purchase of long-lived assets and $449.0 million for the acquisition of ArmenTel in Armenia.

Consolidated figures represent the combined effect of the Company's operations in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia.

RUSSIA Three months 4Q2006 4Q2005 Change, 3Q2006 Change, 4Q06/ 4Q06/ 4Q05 3Q06 Net operating revenues*) (million US$) 1,280.8 859.2 49.1% 1,228.1 4.3% including interconnect revenue 167.8 19.1 778.5% 133.5 25.7% OIBDA (million US$) 645.1 404.1 59.6% 666.4 -3.2% OIBDA margin 50.3% 47.0% 54.2% Gross margin (million US$) 1061.1 724.7 46.4% 1016.3 4.4% Gross margin percentage 82.8% 84.3% 82.7% SG&A (million US$) 406.6 318.5 27.7% 346.2 17.4% SG&A percentage 31.7% 37.1% 28.2% Net income (million US$) 222.2 153.2 45.0% 280.0 -20.6% ARPU (US$) 8.9 7.0 27.1% 8.6 3.5% ARPUACT (active subscribers), (US$) 10.9 8.4 29.8% 10.6 2.8% MOU (min.) 129.8 109.5 18.5% 123.2 5.4% MOUACT (active subscribers) (min) 157.9 131.4 20.2% 151.9 3.9% SAC (US$) 21.8 14.3 52.4% 18.3 19.1% Subscribers, EOP 48,141,200 43,096,700 11.7% 47,651,000 1.0% Active subscribers, EOP 39,782,700 35,936,400 10.70% 38,790,400 2.6% Subscriber market share, EOP 31.7% 34.3% 32.4% Year 2006 2005 Change, Y-on-Y Net operating revenues*) (million US$) 4,400.3 3,032.9 45.1% including interconnect revenue 411.9 39.9 932.3% OIBDA (million US$) 2,303.5 1,508.0 52.8% OIBDA margin 52.3% 49.7% Gross margin (million US$) 3652.2 2550.4 43.2% Gross margin percentage 83.0% 84.1% SG&A (million US$) 1330.8 1032.0 29.0% SG&A percentage 30.2% 34.0% Net income (million US$) 854.8 619.8 37.9% ARPU (US$) 7.9 7.4 6.8% ARPUACT (active subscribers), (US$) 9.6 8.5 12.9% MOU (min.) 120.1 103.6 15.9% MOUACT (active subscribers) (min) 145.9 120.4 21.2% SAC (US$) 17.9 13.3 34.6% Subscribers, EOP 48,141,300 43,096,700 11.7% Active subscribers, EOP 39,782,700 35,936,400 10.7% Subscriber market share, EOP 31.7% 34.3% *) Excluding inter-company transactions.

In Russia, financial and operating results for the fourth quarter of 2006 confirmed the trends that emerged earlier in the year, namely, stabilizing prices and growth in MOU and ARPU. In fact, growth in MOU in the usually weak fourth quarter resulted in ARPU growth. This allowed the Company to increase its revenue in Russia on a quarter-to-quarter basis even with a substantially reduced subscriber growth rate.

Selling, general and administrative expenses (SG&A) as a percentage of net operating revenues decreased to 31.7% in the fourth quarter of 2006 from 37.1% recorded for the same quarter a year ago. An increase of SG&A in the fourth quarter of 2006 as compared with the third quarter of 2006 was connected to a number of seasonal and one-off factors, such as more intensive marketing activities during the New Year campaign and a 30 percent stock price appreciation during the fourth quarter of 2006 which led to additional accruals reflected in the fourth quarter in connection with the employee stock option plan.

Notwithstanding these factors, our OIBDA margin of 50.3% reported for the fourth quarter of 2006 was our best ever reported in Russia for the fourth quarter. For the full year 2006 we also reported the highest ever OIBDA margin of 52.3%.

Net income for the fourth quarter of 2006 grew by 45.0% as compared with the same quarter a year ago. The growth rate was less than that of OIBDA as we took a reserve based on the interim results of our litigation with the tax inspectorate. The litigation is connected with the tax audit for 2003-2004. While the litigation is continuing, we reserved $15.8 million for value added taxes as other losses and $26.7 million in income tax.

In 2006, VimpelCom's capital expenditures in Russia totaled $1,049.5 million (excluding acquisitions) which is $449.3 million less than the same figure in 2005.

KAZAKHSTAN Three months 4Q2006 4Q2005 Change, 3Q2006 Change, 4Q06/ 4Q06/ 4Q05 3Q06 Net operating revenues*) (million US$) 112.4 49.2 128.50% 103.5 8.6% including interconnect revenue 26.3 11.8 122.9% 24 9.60% OIBDA (million US$) 35.7 17.0 110.00% 49 -27.10% OIBDA margin 31.6% 34.2% 47.0% Gross margin (million US$) 77.3 31.7 143.8% 71.9 7.5% Gross margin percentage 68.4% 63.8% 69.0% SG&A (million US$) 40.2 14.8 171.6% 22.5 78.7% SG&A percentage 35.6% 29.7% 21.6% Net income (million US$) -4.4 2.5 -0.6 ARPU (US$) 10.8 9.1 18.7% 11.3 -4.4% ARPUACT (active subscribers), (US$) 13.8 10.3 34.0% 14.4 -4.2% MOU (min.) 60.8 43.4 40.1% 68.6 -11.4% MOUACT (active subscribers) (min) 78.0 49.2 58.5% 87.5 -10.9% SAC (US$) 8.8 11.4 -22.8% 8.5 3.5% Subscribers, EOP 3,826,500 2,050,300 86.6% 3,230,400 18.5% Active subscribers, EOP 3,052,900 1,813,900 68.3% 2,596,300 17.6% Subscriber market share, EOP 49.5% 37.2% 46.9% Year 2006 2005 Change, Y-on-Y Net operating revenues*) (million US$) 350.0 176.1 98.8% including interconnect revenue 81.3 42.7 90.4% OIBDA (million US$) 140.6 64.7 117.3% OIBDA margin 40.0% 36.5% Gross margin (million US$) 240.0 117.2 104.8% Gross margin percentage 68.2% 66.2% SG&A (million US$) 96.5 51.3 88.1% SG&A percentage 27.4% 29.0% Net income (million US$) 9.9 -0.6 ARPU (US$) 10.1 10.5 -3.8% ARPUACT (active subscribers), (US$) 12.6 11.3 11.5% MOU (min.) 56.8 51.3 10.7% MOUACT (active subscribers) (min) 70.4 55.3 27.3% SAC (US$) 8.2 12.1 -32.2% Subscribers, EOP 3,826,500 2,050,300 86.6% Active subscribers, EOP 3,052,900 1,813,900 68.3% Subscriber market share, EOP 49.5% 37.2% *) Excluding inter-company transactions.

2006 was an exceptionally good year for the Company's operations in Kazakhstan where we actively pursued our strategy of rapid expansion. According to an independent source, we took the lead in subscriber numbers with an estimated market share of 49.5%.

We essentially doubled our net operating revenues and more than doubled OIBDA in 2006. The 2006 OIBDA margin of 40.0% was also higher than in the previous year. Profitability in the fourth quarter of 2006 was adversely affected by seasonal effects (particularly by the decline in MOU) and increased sales, general and administrative expenses mostly related to the year-end marketing and advertising activities and further network and IT systems development.

UKRAINE Three months 4Q2006 4Q2005 Change, 3Q2006 Change, 4Q06/ 4Q06/ 4Q05 3Q06 Net operating revenues*) (US$, million) 14.3 2.0 615.0% 11.5 24.3% including interconnect revenue 4.5 0.6 650.0% 3.6 25.0% OIBDA (million US$) -10.5 -1.4 -6.1 Gross margin (million US$) 7.3 1.1 563.6% 7.3 0.0% Gross margin percentage 49.3% 55.0% 58.9% SG&A (million US$) 17.6 2.4 633.3% 13.5 30.4% SG&A percentage 118.9% 120.0% 108.9% Net income (million US$) -21.5 -4 -13.0 ARPU (US$) 3.4 4.1 -17.1% 5.5 -38.2% ARPUACT (active subscribers), (US$) 4.2 4.3 -2.3% 6.7 -37.3% MOU (min.) 122.4 34.6 253.8% 139.0 -11.9% MOUACT (active subscribers) (min) 149.1 36.2 311.9% 168.4 -11.5% SAC (US$) 6.6 9.2 -28.3% 12.3 -46.3% Subscribers, EOP 1,876,100 256,800 630.6% 938,700 99.9% Active subscribers, EOP 1,523,700 249,200 511.4% 766,100 98.9% Subscriber market share, EOP 3.8% 0.9% 2.4% Year 2006 2005 Change, Y-on-Y Net operating revenues*) (US$, million) 33.7 2.0 1585.0% including interconnect revenue 10.6 0.6 1666.7% OIBDA (million US$) -34.7 -1.4 Gross margin (million US$) 16.5 1.1 1400.0% Gross margin percentage 46.9% 55.0% SG&A (million US$) 50.7 2.4 2012.5% SG&A percentage 144.0% 120.0% Net income (million US$) -61.0 -4.0 ARPU (US$) 4.1 4.1 0.0% ARPUACT (active subscribers), (US$) 5.0 4.3 16.3% MOU (min.) 121.8 34.6 252.0% MOUACT (active subscribers) (min) 149.7 36.2 313.5% SAC (US$) 10.0 9.2 8.7% Subscribers, EOP 1,876,100 256,800 630.6% Active subscribers, EOP 1,523,700 249,200 511.4% Subscriber market share, EOP 3.8% 0.9% *) Excluding inter-company transactions.

In Ukraine, 2006 was the first year that we conducted our own operations, which started in mid-April with the launch of our Beeline brand. Although our business in Ukraine is still relatively small it has become a significant source of new subscribers. During the fourth quarter of 2006 we almost doubled our subscriber base and increased our net operating revenues by 24.3% compared with the third quarter of 2006. At the same time, seasonal effects and a disproportionate price-based response from the incumbents to new entrants resulted in a substantial deterioration of market conditions in Ukraine. Consequently, the Company recorded a decrease in MOU and ARPU and deterioration in its OIBDA and net income. The Company intends to meet the new challenges by focusing on building our subscriber base and growing market share.

We continue to litigate Telenor's three claims challenging the URS acquisition. VimpelCom has prevailed in each court case to date. However, to date in two of the cases Telenor has requested that the Supreme Arbitration Court of Russia consider their appeals and a panel of three judges decided to transfer one of the cases to the Russian Supreme Arbitration Court. The panel cited its disagreement with certain conclusions reached by the lower courts. The panel's view is not binding upon the Supreme Arbitration Court.

NEW OPERATIONS Three months Year 4Q2006 3Q2006 Change, 2006 4Q06/3Q06 Uzbekistan Net operating revenues*) (million US$) 15.8 15.7 0.6% 55.4 OIBDA (million US$) 7.8 9.5 -17.9% 32.1 OIBDA margin 49.1% 60.5% 57.7% Gross margin (million US$) 13.9 14.0 -0.7% 48.8 Gross margin percentage 87.1% 89.0% 87.7% SG&A (million US$) 5.9 4.5 31.1% 16.5 SG&A percentage 37.3% 28.3% 29.6% Net income (million US$) 0.4 3.2 -87.5% 8.2 ARPU (US$) 8.8 11.1 -20.7% 10.4 ARPUACT (active subscribers), (US$) 9.8 11.8 -16.9% 11.9 MOU (min.) 240.1 285.0 -15.8% 279.5 MOUACT (active subscribers) (min) 268.8 304.8 -11.8% 320.5 SAC (US$) 5.8 8.6 -33.0% 7.2 Subscribers, EOP 766,500 546,900 40.2% 766,500 Active subscribers, EOP 700,500 484,200 44.7% 700,500 Subscriber market share, EOP 28.2% 26.2% 28.2% *) Excluding inter-company transactions.

Business development in Uzbekistan is still at the initial phase with a penetration rate of approximately 10%. The fourth quarter of 2006 was the first full quarter of our operations after the launch of the Beeline brand in September 2006. Our focus in Uzbekistan is on subscriber growth where the Company achieved good results in the fourth quarter increasing our subscriber base by more than 40%. We continue working on upgrading our networks and services, strengthening the organization, transferring our knowledge and experience, as well as adapting our marketing strategy to the market specifics in Uzbekistan.

Three months Year 4Q2006 3Q2006 Change, 2006 4Q06/3Q06 Tajikistan Net operating revenues*) (million US$) 0.80 0.08 900.0% 1.18 including interconnect revenue 0.07 0.00 0.07 OIBDA (million US$) -1.11 -0.98 -2.45 Gross margin (million US$) 0.37 -0.03 0.52 Gross margin percentage 45.1% -37.5% 43.3% SG&A (million US$) 1.48 0.95 55.8% 2.97 SG&A percentage 180.5% 1187.5% 247.5% Net income (million US$) -1.11 -0.78 -2.40 ARPU (US$) 7.8 1.9 310.5% 4.4 ARPUACT (active subscribers), (US$) 9.0 3.1 190.3% 6.8 MOU (min.) 160.8 40.6 296.1% 77.4 MOUACT (active subscribers) (min) 187.9 69.8 169.2% 121.1 SAC (US$) 2.5 18.2 -86.3% 3.3 Subscribers, EOP 73,400 14,500 406.2% 73,400 Active subscribers, EOP 72,000 6,900 943.5% 72,000 Subscriber market share, EOP 8.9% 4.0% 8.9% *) Excluding inter-company transactions.

As in Uzbekistan, business development in Tajikistan is also at the initial phase with a penetration rate of approximately 12%. The fourth quarter of 2006 was the first full quarter of our operations after the launch of the Beeline brand in September 2006. The Company experienced explosive growth in the fourth quarter increasing its subscriber base by triple-digit numbers and more than doubling its market share. MOU and ARPU also grew by triple-digit numbers. We continue working on developing further our initial success and strengthening our position in Tajikistan.

4Q 2006 Armenia Net operating revenues (million US$) 27.37 including mobile revenues 10.45 including fixed revenues 16.92 OIBDA (million US$) 13.29 OIBDA margin 48.6% Net income (million US$) 2.93 Mobile subscribers 452,000 ARPU mobile (US$) 15.7 Fixed subscribers 608,500 ARPU fixed (US$) 18.5 Mobile subscriber market share, EOP 38.2% Total assets (million US$) 622.6

VimpelCom completed its acquisition of 90% of Armentel on November 16, 2006 and began to consolidate Armentel's results in its financial reporting from that date. At the time of the acquisition, Armentel included a fixed- line business and the second largest mobile operator in Armenia. Going forward, we will work to enhance Armentel's position in the mobile market and we will continue to operate the fixed-line network, exploring fixed-to-mobile convergence opportunities.

The Company's management will discuss its fourth quarter and annual 2006 results during a conference call and slide presentation on April 12, 2007 at 6:30 pm Moscow time (10:30 am ET in New York). The call and slide presentation may be accessed via webcast at the following URL address http://www.vimpelcom.com/. The conference call replay and the slide presentation webcast will be available through April 19, 2007 and May 11, 2007, respectively. The slide presentation will also be available for download on VimpelCom's website http://www.vimpelcom.com/.

The VimpelCom Group includes cellular companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan and Tajikistan, and recently acquired companies in Georgia and Armenia. The VimpelCom Group's cellular license portfolio covers a territory with a population of about 240 million. This includes 77 regions of Russia (136.5 million people, representing 94% of the Russia's population), and the entire territories of Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia, and Armenia. 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".

Although the fourth quarter and annual 2006 U.S. GAAP financial statements were approved by the requisite majority of our board, the three directors on our board who were nominated by our shareholder Telenor East Invest AS and who are officers of Telenor or its affiliates voted against approval.

This press release contains "forward-looking statements", as the phrase is defined in Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements relate to the Company's strategic and development plans, including network development plans, and developments in the telecommunications markets in which the Company operates. These and other forward-looking statements 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 regulation of the telecommunications industries in Russia and the CIS, general political uncertainties in Russia and the CIS and general economic developments in Russia and the CIS, the Company's ability to continue to grow its overall revenues and its subscriber base, continued volatility in the world economy 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 and CIS telecommunications industries will not have a material adverse effect on the VimpelCom Group. There can be no assurance that the Company will prevail in its litigation with Telenor challenging the URS acquisition or that an adverse decision by the Supreme Arbitration Court or any other court in the Company's litigation with Telenor regarding the URS acquisition will not adversely impact the outcome to VimpelCom in the other pending lawsuits brought by Telenor against the Company challenging the URS acquisition. In addition, there can be no assurances that additional claims will not be made by Telenor or other third parties regarding the Company's acquisition of URS or other matters. In the event a decision unfavorable to the Company becomes binding in any pending or future court cases, including a decision for monetary damages and/or to unwind the URS acquisition, it could have an adverse effect on the Company, its business, its expansion strategy and its financial results. 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, 2005 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.

-- Definitions and tables are attached -- Attachment A: Definitions

Subscriber is an authorized user of cellular services, using one SIM card (GSM) with one or several selective numbers or one handset (DAMPS) with one selective number. The number of subscribers includes employees using cellular services and excludes guest roamers and users of test SIM cards (GSM) or handsets (DAMPS).

Churn rate is defined as the total number of registered subscribers disconnected from our network within a given period of time expressed as a percentage of the midpoint of subscribers in our network at the beginning and end of that period. Contract subscribers are disconnected if they have not paid their bills for 2 months and prepaid subscribers are disconnected 6 months after their services have been blocked. We typically block a prepaid subscriber's service in two cases: (1) their balance drops to $0 or below, and (2) an account shows no chargeable activity within 6 months. The Company retains the right to change its disconnect policy to reflect changes in business or regulatory environment.

Active subscribers are those who in the past three months made a transaction which brought revenue to the Company.

Prepaid subscribers are those subscribers who pay for their services in advance.

OIBDA is a non-U.S. GAAP financial measure. OIBDA, previously referred to as EBITDA by the Company, is defined as operating income before depreciation and amortization. The Company believes that OIBDA provides useful information to investors because it is an indicator of the strength and performance of our business operations, including our ability to finance capital expenditures, acquisitions and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under U.S. GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Our OIBDA calculations are commonly used as bases for some investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the wireless telecommunications industry. OIBDA should not be considered in isolation as an alternative to net income, operating income or any other measure of performance under U.S. GAAP. OIBDA does not include our need to replace our capital equipment over time. Reconciliation of OIBDA to operating income, the most directly comparable U.S. GAAP financial measure, is presented below in the tables section.

OIBDA margin is OIBDA expressed as a percentage of total net operating revenues. Reconciliation of OIBDA margin to operating income as a percentage of total net operating revenues, the most directly comparable U.S. GAAP financial measure, is presented below in the tables section.

Gross margin is defined as total operating revenues less service costs and cost of handsets and accessories sold.

Gross margin percentage is gross margin expressed as a percentage of total operating revenues.

Each ADS represents 0.25 of one share of common stock. This ratio was established effective November 22, 2004. Previously each ADS represented 0.75 of one share of common stock.

ARPU (Monthly Average Revenue per User), a non-U.S. GAAP financial measure, is calculated for each month in the relevant period by dividing the Company's service revenue during that month, including roaming revenue and interconnect revenue, but excluding revenue from connection fees, sales of handsets and accessories and other non-service revenue, by the average number of the Company's subscribers during the month. Reconciliation of ARPU to service revenues and connection fees, the most directly comparable U.S. GAAP financial measure, is presented below in the tables section. The Company believes that ARPU provides useful information to investors because it is an indicator of the performance of the Company's business operations and assists management in budgeting. The Company also believes that ARPU provides management with useful information concerning usage and acceptance of the Company's services. ARPU should not be viewed in isolation or an alternative to other figures reported under U.S. GAAP.

ARPUACT is ARPU calculated with regard to active subscribers.

MOU (Monthly Average Minutes of Use per User) is calculated for each month of the relevant period by dividing the total number of minutes of usage for incoming and outgoing calls during that month (excluding guest roamers) by the average number of subscribers during the month.

MOUACT is MOU calculated with regard to active subscribers.

SAC (Average Acquisition Cost Per User), a non-U.S. GAAP financial measure, is calculated as dealers' commissions (for sales and bonus for exclusivity* ), advertising expenses and handset subsidies for the relevant period divided by the number of new subscribers added during the relevant period. Reconciliation of SAC to selling, general and administrative expenses, the most directly comparable U.S. GAAP financial measure, is presented below in the tables section. The Company believes that SAC in growing markets provides useful information to investors because it is an indicator of the performance of the Company's business operations and assists management in budgeting. The Company also believes that SAC assists management in quantifying the incremental costs to acquire a new subscriber. SAC should not be viewed in isolation or as an alternative to other figures reported under U.S. GAAP.

Market share of subscribers for each relevant area is calculated by dividing the estimated number of our subscribers in Russia, Kazakhstan, Ukraine, Uzbekistan and Tajikistan, respectively, by the total estimated number of subscribers in Russia, Kazakhstan, Ukraine, Uzbekistan and Tajikistan, respectively. Subscriber statistics for these countries are taken from reports published by consulting agencies specializing in the

telecommunications industry in Russia and the CIS, reports of other mobile operators, or are estimated by the Company.

*) Dealers' bonus for exclusivity which we previously counted as a part of general and administrative expenses is now included in the dealers' commission expense. Historical numbers including SAC were recalculated accordingly.

Attachment B: VimpelCom financial statements Open Joint Stock Company "Vimpel-Communications" Condensed Consolidated Statements of Operations Three months ended Years ended December 31, December 31, 2006 2005 2006 2005 Unaudited (In thousands of US dollars, except per share (ADS) amounts) Operating revenues: Service revenues and connection fees US$1,447,054 US$900,916 US$4,847,661 US$3,175,221 Sales of handsets and accessories 4,252 7,507 19,265 30,478 Other revenues 657 1,998 2,931 5,419 Total operating revenues 1,451,963 910,421 4,869,857 3,211,118 Revenue based taxes (551) - (1,879) - Net operating revenues 1,451,412 910,421 4,867,978 3,211,118 Operating expenses: Service costs 267,736 145,764 872,388 514,124 Cost of handsets and accessories 4,223 7,214 18,344 28,294 Selling, general and administrative expenses 478,423 335,666 1,503,615 1,085,807 Depreciation and amortization 315,181 182,465 1,054,464 593,278 Provision for doubtful accounts 11,205 2,085 21,848 11,583 Total operating expenses 1,076,768 673,194 3,470,659 2,233,086 Operating income 374,644 237,227 1,397,319 978,032 Other income and expenses: Interest income 4,436 4,152 15,471 8,658 Other income 5,250 6,248 9,768 18,647 Interest expense (46,602) (40,035) (186,404) (147,448) Other expense (27,817) (6,125) (48,612) (24,500) Net foreign exchange gain 10,667 7,211 24,596 7,041 Total other income and expenses (54,066) (28,549) (185,181) (137,602) Income before income taxes, minority interest and cumulative effect of change in accounting principle 320,578 208,678 1,212,138 840,430 Provision for income taxes 127,831 54,324 390,663 221,901 Minority interest in net earnings (losses) of subsidiaries (5,203) 2,606 8,104 3,398 Income before cumulative effect of change in accounting principle US$197,950 US$151,748 US$813,371 US$615,131 Cumulative effect of changes in accounting principles - - (1,882) - Net income US$197,950 US$151,748 US$811,489 US$615,131 Net income per common share US$3.89 US$2.97 US$15.94 US$12.05 Net income per ADS equivalent US$0.97 US$0.74 US$3.98 US$3.01 Weighted average common shares outstanding (thousands) 50,859 51,023 50,911 51,066 Open Joint Stock Company "Vimpel-Communications" Condensed Consolidated Balance Sheets December 31, December 31, 2006 2005 (In thousands of US dollars) Assets Current assets: Cash and cash equivalents US$ 344,494 US$ 363,646 Accounts receivable 311,991 144,197 Other current assets 468,071 453,582 Total current assets 1,124,556 961,425 Non-current assets Property and equipment, net 4,615,675 3,211,112 Telecommunication licenses and allocation of frequencies, net 924,809 826,948 Goodwill 775,223 477,495 Other intangible assets, net 257,917 196,356 Other assets 738,366 633,700 Total non-current assets 7,311,990 5,345,611 Total assets US$ 8,436,546 US$ 6,307,036 Liabilities and shareholders' equity Current liabilities: Accounts payable US$ 671,532 US$ 544,961 Due to related parties 421 709 Customer advances and deposits 314,375 309,647 Bank loans, current portion 358,211 278,537 Rouble denominated bonds - 104,230 Accrued liabilities 267,437 181,268 Total current liabilities 1,611,976 1,419,352 Deferred income taxes 528,025 371,008 Bank loans, less current portion 1,980,726 1,540,043 Accrued liabilities, less current portion 115,050 47,458 Minority interest 257,859 188,626 Shareholders' equity 3,942,910 2,740,549 Total liabilities and shareholders' equity US$ 8,436,546 US$ 6,307,036 Open Joint Stock Company "Vimpel-Communications" Condensed Consolidated Statements of Cash Flow Years ended December 31, 2006 2005 (In thousands of US dollars) Net cash provided by operating activities US$ 1,971,268 US$ 1,292,918 Purchase of property and equipment (1,265,549) (1,178,470) Purchase of intangible assets (31,408) (16,453) Proceeds from sale of property and equipment - 52,578 Acquisition of subsidiaries, net of cash (679,765) (308,065) Sale of shares in subsidiaries - 179,968 Purchase of other assets (310,269) (320,423) Net cash used in investing activities (2,286,991) (1,590,865) Proceeds from bank and other loans 925,183 864,418 Proceeds from sale of treasury stock 12,855 5,291 Repayments of bank and other loans (374,789) (374,682) Repayment of rouble denominated bonds (110,783) - Payments of fees in respect of debt issue (48,175) (19,669) Repayment of equipment financing obligations (72,874) (92,077) Purchase of treasury stocks (38,535) (18,374) Net cash provided by financing activities 292,882 364,907 Effect of exchange rate changes on cash and cash equivalents 3,689 (9,171) Net increase (decrease) in cash and cash equivalents (19,152) 57,789 Cash and cash equivalents at beginning of year 363,646 305,857 Cash and cash equivalents at end of year US$ 344,494 US$ 363,646 Supplemental cash flow information Cash paid during the period: Income tax US$ 354,566 US$ 198,610 Interest 188,991 140,809 Non-cash activities: Equipment acquired under financing agreements 23,458 12,628 Accounts payable for equipment and license 249,020 367,380 Accrued debt and equity offering costs - 5,195 Offset of 2009 Tendered Notes 232,766 - Deferred part of Ericsson non-cash discount in Ukraine 14,542 - Acquisitions: Fair value of assets acquired 671,997 273,147 Difference between the amount paid and the fair value of net assets acquired 268,315 112,281 Cash paid for the acquisition of subsidiaries (735,500) (310,006) Liabilities assumed US$ 204,812 US$ 75,442 Attachment C. Reconciliation tables (Unaudited) Reconciliation of OIBDA (In thousands of US dollars) Three months ended Year Ended Dec 31, Dec 31, Sept 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 OIBDA 689,825 419,692 717,796 2,451,783 1,571,310 Depreciation (265,086) (143,425) (243,593) (874,618) (451,152) Amortization (50,095) (39,040) (45,648) (179,846) (142,126) Operating income 374,644 237,227 428,555 1,397,319 978,032 Reconciliation of OIBDA Margin Three months ended Year Ended Dec 31, Dec 31, Sept Dec 31, Dec 31, 2006 2005 30, 2006 2005 2006 OIBDA margin 47.5% 46.1% 52.8% 50.4% 48.9% Less: Depreciation as a percentage of net operating revenue (18.3%) (15.7%) (17.9%) (18.0%) (14.0%) Less: Amortization as a percentage of net operating revenue (3.4%) (4.3%) (3.4%) (3.7%) (4.4%) Operating income as a percentage of net operating revenue 25.8% 26.1% 31.5% 28.7% 30.5% Reconciliation of SAC (In thousands of US dollars, except for SAC and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sept 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Selling, general and administrative expenses 478,423 335,666 387,236 1,503,615 1,085,807 Less: General and administrative expenses 354,498 213,558 276,489 1,077,660 698,707 Sales and marketing expenses, including 123,925 122,108 110,747 425,955 387,100 advertising & marketing expenses 70,614 48,042 54,239 219,833 135,248 dealers' commission expense 53,311 74,066 56,508 206,122 251,852 New gross subscribers,'000 7,125 8,659 6,614 26,465 29,246 Subscriber Acquisition Cost (SAC) (US$) 17.4 14.1 16.7 16.1 13.2 Reconciliation of ARPU (In thousands of US dollars, except for ARPU and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sept 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Service revenue and connection fees 1,430,132 900,916 1,354,305 4,830,739 3,175,22 Less: Connection fees 313 259 413 1,752 876 Less: Revenue from rent of fiber-optic channels 433 309 760 1,846 1,370 Service revenue used to calculate ARPU 1,429,386 900,348 1,353,132 4,827,141 3,172,975 Average number of subscribers, '000 53,492 42,426 51,626 50,326 35,393 Average revenue per subscriber per month (US$) 8.9 7.1 8.7 8.0 7.5 RUSSIA Reconciliation of OIBDA in Russia (In thousands of US dollars) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 OIBDA 645,144 404,113 666,354 2,303,539 1,508,045 Depreciation (229,544) (135,740) (221,973) (796,137) (430,511) Amortization (27,091) (27,998) (26,429) (104,155) (104,861) Operating income 388,509 240,375 417,952 1,403,247 972,673 Reconciliation of OIBDA Margin in Russia Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 OIBDA margin 50.3% 47.0% 54.2% 52.3% 49.7% Less: Depreciation as a percentage of net operating revenue (17.9%) (15.7%) (18.0%) (18.0%) (14.1%) Less: Amortization as a percentage of net operating revenue (2.1%) (3.3%) (2.2%) (2.4%) (3.5%) Operating income as a percentage of net operating revenue 30.3% 28.0% 34.0% 31.9% 32.1% Reconciliation of SAC in Russia (In thousands of US dollars, except for SAC and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Selling, general and administrative expenses 406,642 318,457 346,157 1,330,806 1,032,040 Less: General and administrative expenses 298,222 203,038 247,190 949,326 664,799 Sales and marketing expenses, including 108,420 115,419 98,967 381,480 367,241 advertising & marketing expenses 59,892 45,291 46,487 190,791 127,292 dealers' commission expense 48,528 70,128 52,480 190,689 239,949 New gross subscribers, '000 4,971 8,064 5,404 21,303 27,591 Subscriber Acquisition Cost (SAC) (US$) 21.8 14.3 18.3 17.9 13.3 Reconciliation of ARPU in Russia (In thousands of US dollars, except for ARPU and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Service revenue and connection fees 1,276,276 849,775 1,223,681 4,379,534 2,997,388 Less: Connection fees 308 259 410 1,744 876 Less: Revenue from rent of fiber-optic channels 433 309 760 1,846 1,370 Service revenue used to calculate ARPU 1,275,535 849,207 1,222,511 4,375,944 2,995,142 Average number of subscribers,'000 47,541 40,484 47,306 46,142 33,958 Average revenue per subscriber per month (US$) 8.9 7.0 8.6 7.9 7.4 Average number of active subscribers,'000 39,102 33,754 38,365 37,996 29,207 Average revenue per active subscriber per month (US$) 10.9 8.4 10.6 9.6 8.5 KAZAKHSTAN Reconciliation of OIBDA in Kazakhstan (In thousands of US dollars) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 OIBDA 35,744 16,979 49,023 140,580 64,665 Depreciation (21,142) (7,655) (17,981) (56,158) (20,611) Amortization (9,134) (8,245) (9,550) (36,792) (34,468) Operating income 5,468 1,079 21,492 47,630 9,586 Reconciliation of OIBDA Margin in Kazakhstan (In thousands of US dollars) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 OIBDA margin 31.6% 34.2% 47.0% 40.0% 36.5% Less: Depreciation as a percentage of net operating revenue (18.7%) (15.4%) (17.2%) (16.0%) (11.6%) Less: Amortization as a percentage of net operating revenue (8.1%) (16.6%) (9.2%) (10.5%) (19.5%) Operating income as a percentage of net operating revenue 4.8% 2.2% 20.6% 13.5% 5.4% Reconciliation of SAC in Kazakhstan (In thousands of US dollars, except for SAC and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Selling, general and administrative expenses 40,200 14,764 22,508 96,451 51,322 Less: General and administrative expenses 33,080 8,435 16,521 74,054 31,822 Sales and marketing expenses, including 7,120 6,329 5,987 22,397 19,500 advertising & marketing expenses 4,419 2,420 3,329 11,791 7,626 dealers' commission expense 2,701 3,909 2,658 10,606 11,874 New gross subscribers,'000 809 556 704 2,724 1,616 Subscriber Acquisition Cost (SAC) (US$) 8.8 11.4 8.5 8.2 12.1 Reconciliation of ARPU in Kazakhstan In thousands of US dollars, except for ARPU and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Service revenue and connection fees 112,963 49,668 104,208 351,854 176,924 Less: Connection fees Less: Revenue from rent of 0 0 0 0 0 fiber-optic channels 0 0 0 0 0 Service revenue used to calculate ARPU 112,963 49,668 104,208 351,854 176,924 Average number of subscribers,'000 3,498 1,818 3,077 2,893 1,404 Average revenue per subscriber per month (US$) 10.8 9.1 11.3 10.1 10.5 Average number of active subscribers,'000 2,728 1,604 2,412 2,332 1,303 Average revenue per active subscriber per month (US$) 13.8 10.3 14.4 12.6 11.3 UKRAINE Reconciliation of OIBDA in Ukraine (In thousands of US dollars) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 OIBDA (10,546) (1,400) (6,072) (34,690) (1,400) Depreciation (4,325) (30) (1,218) (6,478) (30) Amortization (5,722) (2,797) (5,232) (20,555) (2,797) Operating income (20,593) (4,227) (12,522) (61,723) (4,227) Reconciliation of SAC in Ukraine (In thousands of US dollars, except for SAC and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Selling, general and administrative expenses 17,624 2,445 13,466 50,703 2,445 Less: General and administrative expenses 11,346 2,086 8,841 33,235 2,086 Sales and marketing expenses, including 6,278 359 4,625 17,468 359 advertising & marketing expenses 5,144 330 3,861 14,949 330 dealers' commission expense 1,134 29 764 2,519 29 New gross subscribers,'000 948 39 375 1,752 39 Subscriber Acquisition Cost (SAC) (US$) 6.6 9.2 12.3 10.0 9.2 Reconciliation of ARPU in Ukraine (In thousands of US dollars, except for ARPU and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Service revenue and connection fees 14,652 1,952 12,320 35,024 1,952 Less: Connection fees 5 0 3 8 0 Less: Revenue from rent of fiber-optic channels 0 0 0 0 0 Service revenue used to calculate ARPU 14,647 1,952 12,317 35,016 1,952 Average number of subscribers,'000 1,425 239 741 714 239 Average revenue per subscriber per month (US$) 3.4 4.1 5.5 4.1 4.1 Average number of active subscribers,'000 1,170 228 611 582 228 Average revenue per active subscriber per month (US$) 4.2 4.3 6.7 5.0 4.3 UZBEKISTAN Reconciliation of OIBDA in Uzbekistan (In thousands of US dollars) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 OIBDA 7,815 na 9,532 32,079 na Depreciation (2,720) na (2,380) (8,376) na Amortization (3,378) na (3,268) (11,843) na Operating income 1,717 na 3,884 11,860 na Reconciliation of OIBDA Margin in Uzbekistan Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 OIBDA margin 49.1% na 60.5% 57.7% na Less: Depreciation as a percentage of net operating revenue (17.1%) na (15.1%) (15.1%) na Less: Amortization as a percentage of net operating revenue (21.2%) na (20.7%) (21.3%) na Operating income as a percentage of net operating revenue 10.8% na 24.7% 21.3% na Reconciliation of SAC in Uzbekistan (In thousands of US dollars, except for SAC and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Selling, general and administrative expenses 5,933 na 4,462 16,451 na Less: General and administrative expenses 4,287 na 3,355 12,369 na Sales and marketing expenses, including 1,646 na 1,107 4,081 na advertising & 767 na 500 1,843 na marketing expenses dealers' commission expense 879 na 607 2,238 na New gross subscribers,'000 284 na 128 569 na Subscriber Acquisition Cost (SAC) (US$) 5.8 na 8.6 7.2 na Reconciliation of ARPU in Uzbekistan (In thousands of US dollars, except for ARPU and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sep 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Service revenue and connection fees 16,446 na 16,279 57,439 na Less: Connection fees 0 na 0 0 na Less: Revenue from rent of fiber-optic channels 0 na 0 0 na Service revenue used to calculate ARPU 16,446 na 16,279 57,439 na Average number of subscribers,'000 625 na 490 461 na Average revenue per subscriber per month (US$) 8.8 na 11.1 10.4 na Average number of active subscribers,'000 558 na 458 402 na Average revenue per active subscriber per month (US$) 9.8 na 11.8 11.9 na TAJIKISTAN Reconciliation of OIBDA in Tajikistan (In thousands of US dollars) Three months ended Year Ended Dec 31, Dec 31, Sept 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 OIBDA (1,112) na (980) (2,447) na Depreciation (204) na (41) (318) na Amortization (69) na (50) (680) na Operating income (1,385) na (1,071) (3,445) na Reconciliation of SAC in Tajikistan (In thousands of US dollars, except for SAC and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sept 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Selling, general and administrative expenses 1,485 na 947 2,968 na Less: General and administrative expenses 1,325 na 885 2,741 na Sales and marketing expenses, including 160 na 62 227 na advertising & marketing expenses 91 na 62 158 na dealers' commission expense 69 na 0 69 na New gross subscribers,'000 65 na 3.4 69 na Subscriber Acquisition Cost (SAC) (US$) 2.5 na 18.2 3.3 na Reconciliation of ARPU in Tajikistan (In thousands of US dollars, except for ARPU and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sept 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Service revenue and connection fees 840 na 74 1,218 na Less: Connection fees 0 na 0 0 na Less: Revenue from rent of fiber-optic channels 0 na 0 0 na Service revenue used to calculate ARPU 840 na 74 1,218 na Average number of subscribers,'000 36 na 13 23 na Average revenue per subscriber per month (US$) 7.8 na 1.9 4.4 na Average number of active subscribers,'000 31 na 8 15 na Average revenue per active subscriber per month (US$) 9.0 na 3.1 6.8 na ARMENIA Reconciliation of OIBDA in Armenia (In thousands of US dollars) Three months ended Year Ended Dec 31, Dec 31, Sept 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 OIBDA 13,290 na na 13,290 na Depreciation (7,148) na na (7,148) na Amortization (3,928) na na (3,928) na Operating income 2,214 na na 2,214 na Reconciliation of OIBDA Margin in Armenia Three months ended Year Ended Dec 31, Dec 31, Sept 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 OIBDA margin 48.6% na na 48.6% na Less: Depreciation as a percentage of net operating revenue (26.1%) na na (26.1%) na Less: Amortization as a percentage of net operating revenue (14.4%) na na (14.4%) na Operating income as a percentage of net operating revenue 8.1% na na 8.1% na Reconciliation of mobile ARPU in Armenia (In thousands of US dollars, except for ARPU and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sept 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Service revenue and connection fees 10,451 na na 10,451 na Less: Connection fees 0 na na 0 na Less: Revenue from rent of fiber-optic channels 0 na na 0 na Service revenue used to calculate ARPU 10,451 na na 10,451 na Average number of subscribers,'000 445 na na 445 na Average revenue per subscriber per month (US$) 15.7 na na 15.7 na Average number of active subscribers,'000 447 na na 447 na Average revenue per active subscriber per month (US$) 15.6 na na 15.7 na Reconciliation of fixed ARPU in Armenia (In thousands of US dollars, except for ARPU and subscriber amounts) Three months ended Year Ended Dec 31, Dec 31, Sept 30, Dec 31, Dec 31, 2006 2005 2006 2006 2005 Service revenue and connection fees 16,922 na na 16,922 na Less: Connection fees 0 na na 0 na Service revenue used to calculate ARPU 16,922 na na 16,922 na Average number of subscribers,'000 609 na na 609 na Average revenue per subscriber per month (US$) 18.5 na na 18.5 na