OREANDA-NEWS. March 29, 2012. “VimpelCom Ltd” (“VimpelCom”, “Company” or “Group”) (NYSE: VIP), a leading global provider of telecommunications services, announces that earlier today an Algerian Court of first instance handed down a judgment against Orascom Telecom Algerie (“OTA”) and a member of OTA’s senior executive team.  The judgment relates to a previously disclosed claim brought in 2010 by the Algerian authorities alleging breaches of foreign exchange regulations.  The judgment consists of fines of 99 billion Algerian Dinar (approximately USD 1.3 billion) and a criminal sentence against a member of OTA’s senior executive team.

OTA is taking the necessary steps to file an appeal.  The lodging of the appeal will provisionally suspend the judgment. VimpelCom maintains that OTA and OTA’s senior executive have acted in good faith and in compliance with the law. The management in Algeria continues to have VimpelCom’s full support.

VimpelCom is considering all of its options and possible further steps as well as the impact of this judgment in the court of first instance on its negotiations with the Algerian government for the sale of a majority interest in OTA.

OTA is 96.8% owned by Orascom Telecom Holdings SAE, which, in turn, is 51.9% owned by VimpelCom.

On January 9, 2012, VimpelCom and the Ministry of Finance of the Algerian Democratic Peoples Republic announced that they have entered into a non-binding Memorandum of Understanding to explore the possible sale to the Algerian State by OTH of an interest in OTA.

For further information about OTA and the claim, please see VimpelCom’s Annual Report filed on Form 20-F for the year ended December 31, 2010.