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To: TokyoMex who wrote (5986)	10/11/1998 10:25:00 PM
From: TokyoMex	Respond to of 119973

More on VIP ... 10:15am EDT 30-Sep-98 Salomon Smith Barney (POSTOLOVSKY/JENSEN (44-171) 721-65) VimpelCom - Deserving Better Than This VimpelCom - Deserving Better Than This 09/30/98 --SUMMARY:--VimpelCom--Telecommunications Services Hit by the crisis, but less so than other Russian telecoms Remains a solid business despite negative short-term outlook Grossly undervalued on fundamentals A highly geared option on Russian recovery - 2S (Outperform, Speculative) rating ---FUNDAMENTALS:--(based on FYE of 12/98)------------------------------------ Current Rank........:2S Prior: Price ..............:5.69 P/E Ratio(12/98):6.3x (12/99):3.0x Target Price........:N/A Return on Equity 97.:N/A% 52 Wk Price Range...:59.12 - 5.50 LT Debt-to-Capital..:N/A% Book Value..........:8.84 Shares Outstanding..:25.70 mil Dividend/Yield......:N/A/N/A% Proj.5yr EPS Grth...:N/A% Revenue(1998).......:376 mil Country.............:Russia Tot Equity Mkt Cap .:145 mil Convertible.........:No Comments............: OPINION:------------------------------------------------------------------ **US recipients of this report should contact John Jensen (44-171) 721-1711 Being part of the Russian economy, VimpelCom is going to suffer the consequences of the country,s financial crisis. However, the company is likely to be less affected than other Russian telecoms. Despite a negative short-term outlook, fundamentals remain strong and, in our opinion, VimpelCom is grossly undervalued compared with other European operators. We believe that the stock has significant upside potential, while accepting that this is unlikely to be realised until investors return to Russia. We consider the stock a highly geared option on the Russian recovery and rate it 2S (Outperform, Speculative). Hit by the crisis, but less so than others Russia,s financial crisis is likely to have a significant impact on VimpelCom, negatively affecting its short-term performance as well as its growth prospects; 3Q98 results are likely to be disastrous as the company writes off its short-term investments and realises massive foreign exchange losses. In the short term, VimpelCom will probably see a contraction of its subscriber base and sharp decline in usage rates. At the same time, relative to other Russian telecoms, the company is likely to be less affected by the financial turmoil. Its dollar earnings will not be eroded by the ruble devaluation. It does not have massive short-term debts. It is not subject to tariff control and does not bear a risk of hard currency expropriation. Remains a solid business despite negative short-term outlook Despite a temporary setback, the mobile industry in Russia is likely to return to growth in the short term. With a sensibly structured debt, a relatively price-insensitive core subscriber base and a virtually complete D-AMPS network, VimpelCom is poised to survive the crisis. Following a sharp decline in 4Q98, we expect margins to return to growth by the end of 1999. The commitment to develop a GSM-1800 network and the ability to finance it internally should provide VimpelCom with a competitive advantage in the long run. Undemanding valuation On the basis of fundamentals, VimpelCom is grossly undervalued compared with other European operators. Even the worst-case scenario suggests a 60% growth adjusted discount. We appreciate that a large part of this relates to the country risk. At the same time, despite being less affected by the crisis, VimpelCom has significantly underperformed other Russian teleco stocks since the beginning of August. Given its high share liquidity, business transparency, strong fundamentals and quality of management, we believe that VimpelCom will be one of the best plays on the Russian market - as soon as the market settles. However, while investor sentiment towards Russia remains negative, we do not see any triggers which would stimulate growth in the company,s share price in the near future. We consider the stock a highly geared option on Russian market recovery and rate it 2S (Outperform, Speculative).

To: TokyoMex who wrote (5986)	10/11/1998 10:36:00 PM
From: FawnVu	Read Replies (1) \| Respond to of 119973

PLUS, Sunday October 11, 9:56 pm Eastern Time Tokyo stocks rise four percent in morning trading TOKYO, Oct 12 (Reuters) - Tokyo stocks rose more than four percent on Monday after weekend reports the government was seeking as much as 67 trillion yen to support the banking system. Stability in New York stocks and the dollar-yen rate also contributed to equity enthusiasm that swept up almost every sector. As of 0149 GMT, the benchmark Nikkei average had risen 534.33 points, or 4.15 percent, to 13,414.30. Nikkei December futures rose 550 to 13,420. AND Hong Kong stocks open sharply up on HSBC HONG KONG, Oct 12 (Reuters) - Hong Kong stocks were sharply higher in early Monday trading on the strength of HSBC Holdings which lifted the blue chip Hang Seng Index up 230.44 points, or 2.71 percent, to 8,737.23 at the opening. MEANS US will rally big time tomorrow....