Q1 2004 – OSKAR SERVICE REVENUES TOP CZK 3 BILLION (116 MILLION USD)

Oskar added 67,220 net subscribers in the first quarter to reach 1,613,971, an increase of 27.0% compared to 1,270,568 subscribers at the end of the first quarter of 2003. Oskar’s focus on postpaid growth continued to be successful with postpaid subscribers representing 76% of net additions during the quarter and 44% of our total subscriber base at end of the quarter.

“Oskar’s continued strong performance in Q1 confirms that our passionate dedication to building our brand is reaping rewards,” said Karla Stephens, Chief Operating Officer at Oskar. “And our impressive ratio of new, post-paid customers is evidence that our strategy to capture the higher-value customer is working.”

Oskar‘s national cellular market share has grown to an estimated 16.3% as of March 31, 2004, compared to a 14.5% share at the same time in 2003. We estimate that Oskar captured approximately 36% of the total market new subscriber additions during the quarter.

Oskar achieved a record operating income of USD 6.2 million for the first quarter of 2004, compared to an operating loss of USD 3.8 million for the first quarter of 2003.

Oskar’s operating income before depreciation and amortization (OIBDA) was USD 34.4 million compared to OIBDA of USD17.3 million for Q1 2003. OIBDA as a percentage of service revenue for the quarter reached 29% compared to 22% in the first quarter of 2003 and 27% for the year 2003 as a whole. “Our solid operating performance is very much a part of Oskar’s success,” said Muriel Anton, Oskar’s Vice President of Finance and Operational Support. “We are achieving even greater value as economies of scale are realized, and fixed costs can be spread over a larger subscriber base.”

Service revenues increased 52.0% to USD 116.6 million compared to USD 76.7 million for the first quarter of 2003 due to a 29.0% increase in average subscribers and an 18.1% increase in monthly average revenue per user (ARPU) . ARPU for the first quarter reached Czech Koruna 623.5 (USD 23.72) compared to Czech Koruna 592.5 (USD 20.09) for the same period of last year and the average exchange rate between the U.S. Dollar and the Czech Koruna during the first quarter of 2004 was 12.4% higher than for the same period in 2003. “

Oskar is a trademark of Český Mobil a.s., a subsidiary of Telesystem International Wireless Inc. (“TIW”). TIW is a leading cellular operator in Central and Eastern Europe with more than 5.2 million subscribers. TIW is the market leader in Romania through MobiFon and is active in the Czech Republic through Český Mobil a.s. TIW’s shares are listed on the Toronto Stock Exchange (“TIW”) and NASDAQ (“TIWI”).

This information is taken from the TIW press release dated May 4, 2004 and is available by accessing the TIW web site (www.tiw.ca). Financial results are unaudited and prepared using Canadian generally accepted accounting principles (“GAAP”).

1 Oskar uses the term operating income before depreciation and amortization (“OIBDA”) and average revenue per user (“ARPU”) which may not be comparable to similarly titled measures reported by other companies. We believe that OIBDA, referred to in our previous reporting as EBITDA, provides useful information to investors because it is an indicator of the strength and performance for our ongoing business operations, including our ability to fund discretionary spending such as capital expenditure and other investments and our ability to incur and service debt.

While depreciation and amortization are considered operating costs under generally accepted accounting principles (“GAAP”), these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Our OIBDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the wireless telecommunications industry. We believe that ARPU provides useful information concerning the appeal of our rate plans and service offerings and our performance in attracting and retaining high value customers. ARPU excludes revenues from other cellular networks’ customers roaming on our network. OIBDA and ARPU should not be considered in isolation or as alternatives measures of performance under GAAP.