S Proposed Acquisition of Kyivstar

Comments regarding VimpelCom’s proposed acquisition of Kyivstar

Key corporate governance issues have to be resolved before Telenor is willing to discuss a possible merger between VimpelCom and Kyivstar.

This is the initial response from Telenor's executive Vice President and head of Telenor's operations in Central and East Europe, Jan Edvard Thygesen, to a letter from VimpelCom's CEO Alexander Izosimov, proposing that VimpelCom acquire Ukrainian mobile operator Kyivstar, where Telenor holds 56.3 per cent of the shares and Alfa the remaining 43.5 per cent.

Telenor regrets that such confidential information has been leaked to the press.

Telenor and Altimo, both being major shareholders in VimpelCom and Kyivstar, have important unresolved governance issues. These issues need to be discussed and resolved before Telenor is prepared to enter into such discussions.

Telenor is ready to work constructively with Altimo and all other shareholders, but insists that proper corporate governance must be re-established and that contractual obligations must be respected.

Telenor has applied to the Russian Federal Antimonopoly Service (FAS) to increase its ownership in VimpelCom to up to 45 per cent and has previously considered VimpelCom as having the potential to be Telenor's main vehicle for mobile expansion into the CIS.

Telenor has been committed to the telecom markets in Russia and the Ukraine since 1992 and has a long-term perspective on its industrial positions and value creation in these countries.

A key issue would also be the position of Russian authorities with respect to Telenor's long-term industrial ambitions. This issue also needs to be resolved.

Further information: Dag Melgaard, Vice President Corporate Communications Telenor ASA, tel: (+47) 901 92 000, e-mail: [email protected]

Kai Rosenberg, Vice President Corporate Communications Telenor ASA, tel: (+47) 915 54 357, e-mail: [email protected]

Telenor Group is one of the world's major mobile operators. We keep our customers connected in our markets across Scandinavia and Asia. Our more than 30,000 employees are committed to responsible business conduct and being our customers' favourite partner in digital life. Connecting the world has been Telenor's domain for more than 160 years, and we are driven by a singular vision: to empower societies.