RadioMobil´s Revenues Reached The Boundary Of 11 Billion Crowns In 1999

• Revenues were 10.9 billion crowns in 1999
• RadioMobil overtook its competitor by the number of new users
• The profit grows at slower rate, because high interconnection fees of ÄŚeský Telecom and also costs for financing the steadily growing investments make themselves felt
• During 1999 RadioMobil introduced 13 new services and products and received 12 various awards altogether both in CR and abroad
• RadioMobil clearly became the leading operator on the Czech market in the number of new activations, having acquired more than 500 000 new customers in 1999 as the first in history of the Czech mobile market

"In 1996 we brought competition to the Czech market of mobile telecommunication services and our punchy entering is today more than perceivable, considering prices the users pay or the services that they can use, often as one of the first in the world. All this requires huge effort and no small investments. A guarantee of success is the background of all our shareholders, if they are ÄŚeské radiokomunikace or the international consortium CMobil, whose members have clear long-term plans and aims on the Czech market," the general director of the RadioMobil Company Klaus Tebbe said.

During last year the RadioMobil Company became the most successful telecommunications operator on the Czech market, because it acquired more than 500 000 new customers in a single year, which was not achieved by any other mobile phone network operator in CR so far. The Company hence increased its share on the market of newly activated customers of GSM services to more than 50 percent. The incessantly growing number of customers of mobile services is stimulated by price convergence of fixed and mobile telecommunication services. "Should the growth of mobile phone owners continue at the same rate as until now, it will exceed the number of fixed telephone lines within two years and it will further increase," Klaus Tebbe remarked.

"During less than four years RadioMobil became one of the most prominent Czech companies and we want to consolidate this position further in the future. In that we can rely on our 1800 employees, whose abilities are, apart from the financial background from our shareholders, the main asset of our technologically mature Company," the Company´s Financial Director Gustav Hraška said. The Company´s audited financial results are favourable. According to international accounting standards the operating profit rose by 98 percent to 1.784 billion crowns and the net profit increased by 63 percent to 865 million with total income of about 11 billion crowns.

The profit increase was reached above all by the high number of our customers, who use the Paegas services. In the area of expenses increases the share of amortizations of the expanding network´s technological equipment and also high interconnection fees, which is RadioMobil forced to pay to ÄŚeský Telecom when directing especially international outgoing calls, for which ÄŚeský Telecom still has an exclusivity. Negotiations about the height of these fees have not been concluded yet.

"As in the previous years we intend to re-invest the profit achieved, because we view the Czech telecommunications market with a long-term perspective," Gustav Hraška specified, and added: "Last year we succeeded in fulfilling all the parameters we drew up at the beginning of the year, both in the financial and technical areas and in the area of customer care provision. It was reflected in the number of clients and in the increase of our share on the GSM services market. The plans for this year are very ambitious again both in the number of new customers and in the height of investments."

RadioMobil´s investments exceeded the amount of 5.5 billion crowns in 1999. These investments were directed primarily into the GSM network infrastructure and new technologies, and so the Paegas GSM network signal now covers over 99 percent of the population and almost full 100 percent of international roads. The coverage level is high above the level usual in many European countries.

Overview Of Selected Economic Indicators (according to IAS)

[in millions CZK]	1997	1998	1999
Revenues	2981	6468	10931
Sales Costs	-3280	-3035	-5373
Other Costs	-493	-2534	-3773
Financial Costs/Revenues	308	-59	-461
Taxes	142	-310	-459
Net Profit	-342	530	865
Number Of Customers (thousands)	173	373	875

RadioMobil as the operator of the Paegas GSM network occupies the leading position in the area of implementing new services and mobile solutions even on the world scale. As well as the year before, RadioMobil received a whole range of both national and foreign forum awards in 1999. At the same time, RadioMobil became the most admired telecommunications company in CR for the second time and the fourth most admired Czech company generally in the Czech Top 100 association. "Of course we are very pleased by being number one in the area of technological innovations and we do everything to offer our customers the best the GSM technology allows at the moment, for prices affordable for wide public. However, we are also valued by experts from other disciplines than telecommunications and this is only a further evidence of the fact that we are perceived as one of the most progressive Czech companies by the public," the gazetteer of the RadioMobil Company Tereza Kakosová said.

RadioMobil Incorporated is the operator of the GSM network called Paegas, which today covers over 99 % of the Czech population and 99.8 % of first-class roads. Customers can use a Paegas GSM mobile phone in networks of 171 operators from almost 80 countries of the whole world. In half of March 2000 more than 1 000 000 customers used the services of the Paegas GSM network, into which RadioMobil invested more than 5.5 billion crowns only during 1999. Paegas hence became the leading operator on the Czech market in the number of new activations, having acquired more than 500 000 new customers in 1999 as the first in the Czech mobile market history and over 125 thousand new clients during the first 10 weeks of 2000.

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.