Deutsche Telekom Increased its Share in RadioMobil

• CMobil consortium now owns 60.8 % of RadioMobilâ??s registered capital
• The increase in the international consortiumâ??s share will bring the company an even greater stability

By increasing the registered capital by CZK 120 billion in mid-April the share of the Cmobil consortium (whose majority shareholder is Deutsche Telekom) in RadioMobil rose from the existing 49 to 60.8%. The joint-stock company ÄŚeské radiokomunikace owns the remaining 39.2%.

â?žThe fact that Deutsche Telekom has become the majority shareholder of our company is important for several reasons,â?ť explains Roland Mahler, Managing Director of RadioMobil. â?śThis fact will bring our company not only the advantages of an even wider use of international experience of its majority shareholder Deutsche Telekom, but it will also enable a much closer co-operation with its other subsidiaries and by doing so open up important synergy gains. In practice this means that RadioMobil will in many areas share the same strategic position with the other members of the Deutsche Telekom group.â?ť

Moreover, RadioMobil is the only operator in the Czech Republic owned by a strong international company with its seat in Europe. The increase in CMobilâ??s share is a clear evidence of the fact that Deutsche Telekom considers its share in RadioMobil a part of its business strategy. The financial background of a big international partner will thus bring RadioMobil an even greater stability and long-term prospects. â?žWe will be able to offer our customers an even wider and more developed range of services and a more convenient and developed customer care,â?ś adds Roland Mahler. â?žThanks to the close co-operation with the other companies we will be able to develop internationally usable products and our customers will in future have the opportunity to use their Paegas phones in the majority of foreign countries with the same convenience as in the Czech Republic."

The strengthening of Deutsche Telekomâ??s influence in RadioMobil is undoubtedly one of the most significant events in the Czech mobile communications market this year. Thanks to the international experience and influence of a strong foreign partner new prospects will definitely open up for RadioMobil in the Czech Republic and, as consequence, it will be the Paegas customers who will most greatly benefit from this change.

Shareholder structure since 18 April 2001
39.2% ÄŚeské radiokomunikace a. s.
60.8 % CMobil B. V.

Cmobil consortium owners:
87.3 % T-Mobil (subsidiary company of Deutsche Telekom)
12 % STET mobile holdings N.V.
0.7 % PVT, a.s.

The joint-stock company RadioMobil is the operator of a GSM 900/1800 MHz network called Paegas. Since 1996, when RadioMobil entered the Czech market and brought in competition, it obtained more than two million customers. RadioMobil sells prepaid services under the brand Paegas Twist, which is the most successful prepaid service in the Czech market, providing its users with a whole range of services such as data and fax connection, GSM Banking based on the SIM Toolkit standard, Paegas Assistant services, access to WAP services and furthermore it offers a free e-mail ClickBox Easy. Paegas Click is another brand of RadioMobil, focused on customers with Internet or WAP access. At www.click.cz they can easily configure services as well as for instance use a comprehensive e-mail box based on the unified messaging technology.

Today, the Paegas GSM network covers over 99% of the Czech population and 99.8% of first class roads. Only during the year 2000 the number of transmitters increased by 750 and thus reached 2500 by the end of the year. Last year, investments only in the network exceeded nine billion crowns. RadioMobil customers may use their mobile phones in networks of 203 operators from 89 countries of the whole world (124 various locations altogether). By the end of February 2001, more than 2,000,000 customers were using Paegas services.

T-Mobile Czech Republic, a member of the international telecommunications group Deutsche Telekom, has almost 6.2 million customers, the number-one operator in the Czech market. T-Mobile is an integrated operator: in addition to telecommunications services, it offers comprehensive ICT solutions not only for companies, but also for other organizations and individuals. It provides outstanding services in the high-speed network, which was proved repeatedly by benchmark testing performed by umlaut (former P3) with Best-in-Test seal.

T-Mobile Czech Republic places emphasis on taking a responsible approach to the environment and society. It adheres to fair business practices, helps beneficial applications and services to see the light of day, supports non-profit organizations, small businesses and individuals, and lends a helping hand whenever crisis situations arise. The company’s employees serve as volunteers in many places across the entire Czech Republic.

More information about the company is available at www.t-mobile.cz, www.t-press.cz (the portal for journalists) and www.t-mobile.cz/pomahame (information on the company’s CSR activities).

Contact details of the press unit: press@t-press.cz.