RadioMobil Preliminary Financial Results 2000* Increase of number of customers and sales is accompanied by increasing investments in the Paegas network.

• RadioMobil revenues reached CZK 17.8 billion last year
• RadioMobil invested CZK 9 billion in the Paegas network in 2000
• More and more corporate customers are interested in Paegas services

The revenues of RadioMobil, which is the operator of the Paegas GSM network, increased by 62% last year. Whereas revenues amounted to almost CZK 11 billion in 1999, they reached CZK 17.8 billion last year. Net profit according to international accounting standards reached CZK 1.7 billion last year. The EBITDA margin increased slightly to 30.3% despite tougher competition battle for new clients.

As in previous years, the company keeps up the high investment pace. In last year alone, RadioMobil invested CZK 9 billion. The GSM Paegas network covers over 99% of the Czech population and 99.8% of first-class roads today. The number of transmitters increased by 750 to the year-end figure of 2500 during the year 2000.

â?śApproximately one million new users chose our network last year, which represents a doubling of the growth in comparison to 1999, so that there were 1,865,000 clients using the Paegas services at the end of 2000,â?ť says CEO of RadioMobil, Roland Mahler. â?śWe recorded a 100% increase in customer base despite another competing mobile network operator entering the market in 2000. Therefore, the capacity of the GSM network must keep the pace with the rapid growth of the number of clients. The confidence of our clients in us obliges us to always offer new and higher-quality services which, in turn, require the implementation of the latest technologies related to immense investment expenditures. Therefore we plan to continue investing huge financial resources in the upgrade of the GSM Paegas network and information systems also this year.â?ť

The investment development in the year 2000 was financed through combination of own resources and proceeds from the 3 bln.CZK bond successfully issued in late 1999. The debt-to-equity ratio stood at roughly 1:1, which is a healthy value.
Gustav Hraška, Financial Director of RadioMobil, explains: â?śOnly financially sound businesses have chance to succeed in the current sharp competition and to offer their customers a long-term perspective. Thanks to an ever-increasing efficiency of all processes and to growing traffic, RadioMobil has managed to achieve growing parameters of operating performance so far, and we intend to carry on like this in the future. Given the pessimism of capital markets, most emphasis is on financial performance of businesses. This is also related to the issue of investing in licenses for deployment of the 3G mobile networks â?" the UMTS. Paying a high price for the right to use a technology that is not operational yet would mean endangering the financial stability of a company that has been serving two million customers already. However, we believe that today there is already enough experience from abroad, showing that too high license fees are detrimental to the further development of customer services and their pricesâ?ť.

A number of large businesses and state organizations chose to use Paegas services last year. RadioMobilâ??s biggest clients include Škoda Auto, ÄŚSOB, GE Capital, Ministerstvo vnitra, Danone, Nestle, Allianz, Union Banka, ÄŚeská pošta or Pepsi Cola. The companyâ??s strategy is not only to provide personal communication services â?" a large potential lies in the area of customized solutions for businesses of all sizes.

Business results of RadioMobil in 1999 and 2000

	1999	2000
	(CZK Billion)	(CZK Billion)
Revenues	10,9	17,8	+62 %
Net profit	0,87	1,7	+95 %
CAPEX	5,5	8,6	+56 %
Number of clients	875 000	1 865 000	+111 %
EBITDA	29,6 %	30,3 %	+2 %

The joint-stock company RadioMobil is the operator of the GSM 900/1800 MHz network named Paegas. Since 1996, when RadioMobil entered the Czech market and brought competition to the environment, it has won two million clients. RadioMobil sells its prepaid services named Paegas Twist, which is the most successful prepaid service on the Czech market. It offers its users a wide range of services such as data and fax connections, GSM banking based on the SIM Toolkit standard, Paegas Assistant services, access to WAP services, and a free e-mail box named ClickBox Easy. Paegas Click is another RadioMobil service brand, focused on clients with Internet and WAP access. They may visit the www.click.cz web page for easy setup of their services and use a comprehensive electronic message box based on the unified messaging technology. RadioMobil customers can use their mobile phones in the networks of 203 operators in 89 countries worldwide (124 different locations in total).

RadioMobil belongs to the Deutsche Telekom group â?" one of the worldâ??s largest telecommunications operators. This operator holds 87.3 % in the C-Mobil through its affiliate T-Mobil (Deutsche Telekomâ??s mobile services operator). Other C-mobil shareholders are: STET mobile holdings N.V. (12 %) and PVT, a.s. (0.7 %). The C-Mobil international consortium and ÄŚeské radiokomunikace are the shareholders of RadioMobil. In, 2001 C-Mobil will exercise its preemptive right to increase its stake in RadioMobil from the current 49 % to 60.8 %.

*The results 2000 are not yet finally discussed and approved by the responsible bodies of the Company.

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.