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Q1 2003 SAW OSKAR ACHIEVE STRONG POSTPAID GROWTH

05. May 2003

Oskar added 90,800 net subscribers in the first quarter to reach 1,270,600, an increase of 29% compared to 987,100 subscribers at the end of the first quarter of 2002. Oskar’s focus on post-paid growth was successul and resulted in the addition of 75,300 postpaid subscribers representing 83% of new additions during the quarter. As a result, postpaid customers account for 39% of Oskar’s subscriber base as compared with 27% a year ago. Service revenues increased to $76.3 million, a 78% increase over Q1 2002.



Oskar added 90,800 net subscribers in the first quarter to reach 1,270,600, an increase of 29% compared to 987,100 subscribers at the end of the first quarter of 2002.

Oskar’s focus on post-paid growth was successul and resulted in the addition of 75,300 postpaid subscribers representing 83% of new additions during the quarter. As a result, postpaid customers account for 39% of Oskar’s subscriber base as compared with 27% a year ago.

Service revenues increased to $76.3 million, a 78% increase over Q1 2002. The monthly average revenue per subscriber (ARPU*) was $20.03 as compared with $14.85 in the first quarter of 2002. Oskar’s EBITDA rose to $17.3 million as compared with $1 million in the first quarter of 2002.

“Oskar had a strong start to 2003, even though the first quarter is generally considered the slowest part of the year,” says Karla Stephens, COO at Oskar. “The New Generation Tariffs combining the benefits of prepaid cards and postpaid plans have resulted in a record addition of postpaid customers.”

Growing usage of data services is a new trend among Oskar’s customers. Within a single quarter, the number of active GPRS users grew by 55%, which is partly attributable to the launch of GPRS Oskarta in February 2003.

Since the beginning of 2003, Oskar has acquired a number of important business clients. The clients who entered into contract with Oskar or had their contract extended include Siemens, Vodní díla – TBD a. s., Slévárna Liberec, and C.I.A. media agency. The strongest growth was recorded in the small and medium-sized business segment (up to 50 employees).