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IPB and TIW launch Cesky mobil to spearhead mobile bidCommits to considerably lowering tariffs

28. July 1999

IPB and Telesystem International Wireless (TIW) today launched Cesky mobil to spearhead the consortium's bid for the DCS 1800 MHz mobile license. Cesky mobil is committed to an aggressive mass-market pricing strategy which will result in considerably lower tariffs than those currently offered to Czech consumers. The objective of Cesky mobil is to make mobility affordable to as many people as possible," said Mario Bertrand, President New Ventures of TIW. "Our group, Telesystem, has had a tremendous impact in Canada where mobile rates are now the most affordable in the world. We want to adopt a similar strategy here in the Czech Republic," added Mario Bertrand.

IPB and Telesystem International Wireless (TIW) today launched Cesky mobil to spearhead the consortium's bid for the DCS 1800 MHz mobile license. Cesky mobil is committed to an aggressive mass-market pricing strategy which will result in considerably lower tariffs than those currently offered to Czech consumers.

The objective of Cesky mobil is to make mobility affordable to as many people as possible," said Mario Bertrand, President New Ventures of TIW. "Our group, Telesystem, has had a tremendous impact in Canada where mobile rates are now the most affordable in the world. We want to adopt a similar strategy here in the Czech Republic," added Mario Bertrand.

Cesky mobil also announced agreements with information technology leader PVT and retail chain Julius Meinl Praha.

"PVT brings unparalleled expertise in information technology and systems integration, a robust Internet network with over 50 access points and can play a key role in system development of sophisticated wireless applications, such as E-commerce and E-banking development, " said Jan Klacek, Chairman of Board of Directors and General Manager of IPB. " Julius Meinl Praha extends our distribution network which is already very extensive. Through the 180 IPB points of presence and through offices of IPB Post Savings in each of the 3400 post offices, we have one of the largest distribution networks in the country." added Mr. Klacek.

Cesky mobil will not be just another mobile phone service but will provide a Mobile Knowledge Network, a network which will provide true mobile web access by moving the internet off the desk and into the hands of the people. State-of the art technology will allow advanced and sophisticated platforms and applications such as e-commerce and personnalization.

In order to achieve this Cesky mobil will invest a minimum of US$500 million over the first three years of operations, including network roll-out, and expects to have more 1,000 employees in the first two years.

"Cesky mobil's vision of an enhanced mobile network supporting the most advanced platforms makes it natural for our company to establish a relationship with the consortium. We look forward to a rewarding relationship which will build on our complementary expertise," said Karel Menzinger, Executive Director of PVT.

PVT, a leader in information technology and systems integration, could provide exclusive services such as Internet consumer service provider services, system development for e-commerce, e-Banking and other applications, as well as distribution, logistics and Information Communication Technology (ICT) services.

Through an exclusive agreement, Julius Meinl Praha has agreed to support the distribution of Cesky mobil telecommunications products through its distribution network composed of three banners: supermarkets Julius Meinl, discount sales points Jée and Cash & Carry shops Impuls.

PVT is an accomplished systems integrator as well as a telecommunications services provider. It is a leading provider of a comprehensive range of services in the information technology field. It also has its own private nation-wide open computer network. Since 1996, PVT has been offering connections to the Internet under its commercial name pvt.net . The proprietary network of PVT currently has 53 access points. Products and services offered and operated by PVT are offered in quality corresponding to PVT´s ISO 9001 standard.

IPB is the biggest private bank in the Czech Republic and at the same time the third largest bank operating in CR measured by volumes of loans, deposits and total assets. IPB´s equity amounts to 13.4 billions CZK, it serves more than 2,6 millions clients and operates over 3 millions accounts.

TIW is a global wireless operator. It develops, acquires, owns and operates wireless telecommunications networks in developing and developed markets throughout the world. TIW provides digital cellular services in Romania, Brazil, India and China. The Company also provides specialised mobile radio (SMR) services in the United Kingdom, France, Germany, Belgium, Spain and Portugal as well as paging services in Mexico and the Netherlands. TIW is listed on the Montreal Exchange and the Toronto Stock Exchange under the symbol "TW" and on the NASDAQ Stock Market under the symbol "TIWI".

TIW is a member of the Canadian-based private communications group Telesystem Ltd., which manages companies which together employ 18 000 people in 30 countries. The leading telecommunications company within the Telesystem group is Teleglobe, which has revenues of over US$ 3,5 billion. The group's strong position in wireless communications is secured internationally through TIW and in Canada through Microcell Telecommunications, operator of the third national wireless licence (PCS 1900 Mhz) awarded by the Canadian government.