Telenor Says New Arbitration Brought By Alfa Has No Merit

FORNEBU, NORWAY and MOSCOW by approximately one year, and that VimpelCom and Eco Telecom suffered harm as a result. Eco Telecom is claiming damages of US$1 billion. Telenor believes this proceeding has no merit, and will defend it vigorously.

"Alfa recently lost both the VimpelCom and Kyivstar-related arbitration proceedings brought by Telenor," said Telenor Chief Press Spokesman Dag Melgaard. "It is hard to see this claim as anything but an attempt by Alfa to pressure Telenor and attract media attention with its frivolous US$1 billion damage claim. VimpelCom's purchase of URS was an overpriced, non-transparent transaction. URS's weak performance since it was acquired by VimpelCom has confirmed that this was a bad deal for VimpelCom shareholders."

Telenor owns 33.6% of VimpelCom's shares of common stock and 29.9% of VimpelCom's voting capital stock. The arbitration proceeding brought by Alfa will be conducted in Geneva, Switzerland under the UNCITRAL Arbitration Rules before a panel of three arbitrators.

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Further information: Dag Melgaard Vice President Group Communications Telenor ASA tel: [phone] e-mail: [e-mail]