3G Mobile Services Live In Russia

Europe : VimpelCom, Russia's leading mobile operator, and Alcatel are demonstrating new 3G/UMTS mobile applications and services live at the Svyaz-Expocomm trade fair.

Inset is Sergei M. Avdeev VP Network Development at VempelCom who is quoted below.

For the very first time in Russia, the visitors can take a look at the communications technology of tomorrow by watching live television, at any place, at any time on mobile handsets. As well as this, video-telephony users are the first in Russia to see and hear each other in full mobility, whilst one can also watch what is happening "live" in various countries in Europe and in Asia. All these multimedia calls are made using full 3GPP-compliant mobile handsets communicating over Alcatel's Evolium? 3G/UMTS Core and Radio solutions combined with appropriate Alcatel application platforms.

This Russian Premiere follows the mobile video-telephony international calls that Alcatel has conducted in Europe and in Asia for over a year, linking various 3G/UMTS pilot networks deployed by Alcatel in France, Germany, Italy, Netherlands, Portugal, Spain, Sweden, as well as in Kuala Lumpur, Shanghai, Taipei or Tokyo.

Furthermore, visitors can enjoy playing interactive games with people across the world, watching the latest music video clips or movie previews, as well as surfing the Internet via 3G/UMTS handsets. Long-term strategic cooperation between Alcatel and VimpelCom is based on the rich experience of both companies. It proves the technical viability of end-to-end 3G/UMTS solutions that open new business opportunities. The
companies are developing comprehensive end to end solutions for voice services, packet-switched data services reaching 384 kbps and circuit-switched video telephony. The capitalization on the extended experience of both companies in 3G/UMTS since the end of 2001 demonstrates that VimpelCom and Alcatel are strengthening their position in Russia for the 3G/UMTS technology.

Under the terms of the contract signed with VimpelCom in 2001, Alcatel delivered and installed its complete Evolium? solution including the UTRAN (UMTS Terrestrial Radio Access Network) radio systems, the network systems (CORE), as well as the associated Radio Network Controller (RNC) and multimedia equipment. The radio systems, which include the UMTS base stations (Node B), are developed and produced by Evolium SAS, the joint venture between Alcatel and Fujitsu.

"We have for a long time partnered with Alcatel building high-quality networks that meet the demands of the outstanding growth of our GSM/GPRS subscribers", declared Sergey Avdeev, Chief Technical Officer of VimpelCom. "Our experience from early UMTS projects will allow us to perform flexible upgrades for existing infrastructure which enables VimpelCom to offer seamless 2.5 G and 3G service depending on customer's needs."

Marc Rouanne, COO of Alcatel's Mobile Communications Group commented : "This cooperation between VimpelCom and Alcatel brings together expertise and competence from both companies, and demonstrates the reality of Alcatel's 3G/UMTS end-to-end solutions, thus opening new business perspectives in the mobile data market."

The Evolium? multi-standard platform integrates all technologies, from GSM/GPRS to EDGE and UMTS and with all solutions in one for the smooth upgrade of existing networks. Alcatel's approach to the introduction of UMTS in existing GSM networks focuses on protecting the operator's investment in general, and on the Radio Access Network (RAN) system, in particular. Evolium? multi-standard base stations are installed in more than 50 mobile networks worldwide, ready for 3G/UMTS (WCDMA) network rollouts.

About VimpelCom
VimpelCom is a leading provider of telecommunications services in Russia, operating under the "Bee Line" family of brand names. The VimpelCom Group's license portfolio covers approximately 92% of Russia's population (134 million people), including the City of Moscow, the Moscow Region and the City of St. Petersburg. VimpelCom's ADSs are listed on the New York Stock Exchange ("NYSE") under the symbol "VIP". VimpelCom's convertible notes are listed on the NYSE under the symbol "VIP 05".

About Alcatel
Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications network equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of EURO 16.5 billion in 2002, Alcatel operates in more than 130 countries.