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Q3 2004 –OSKAR’S SHAREHOLDER STUCTURE TO BE SIMPLIFIED; GROWTH OF POSTPAID SHARE AND SERVICE REVENUES CONTINUE

09. November 2004

As 3rd quarter results were released today, agreement in principle was also announced for Oskar’s controlling shareholder, Telesystem International Wireless Inc. (“TIW”), to acquire the balance of all equity interests in Oskar Holdings N.V. (“Oskar Holdings”) in exchange for shares of TIW. This measure will effectively reconfigure and simplify Oskar Mobil’s shareholder structure once the agreement takes effect, expected sometime in Q1 2005.

As 3rd quarter results were released today, agreement in principle was also announced for Oskar’s controlling shareholder, Telesystem International Wireless Inc. (“TIW”), to acquire the balance of all equity interests in Oskar Holdings N.V. (“Oskar Holdings”) in exchange for shares of TIW. This measure will effectively reconfigure and simplify Oskar Mobil’s shareholder structure once the agreement takes effect, expected sometime in Q1 2005.

Oskar’s Q3 financial performance saw 69,279 net subscribers added to reach 1,747,284, an increase of 21.5% compared to 1,438,142 subscribers at the end of the third quarter of 2003. Once again we achieved an increase in the proportion of postpaid subscribers relative to prepaid. The number of postpaid customers in Oskar’s portfolio reached 46% compared to 41% at the same period last year.

Oskar estimates it held a 17.1% share of the national cellular market as of September 30, 2004, compared to a 15.7% share at the same time last year. During the past 12 months, Oskar estimates cellular penetration in the Czech Republic increased to 100% from 90% at the end of the third quarter of 2003.

“This quarter also saw us continue the growth trend in our postpaid subscriber base, which is very encouraging against the backdrop of a highly competitive Czech market,” says Karla D. Stephens, Chief Operating Officer of Oskar.

Service revenues increased 31% to USD 130.9 million compared to USD 99.9 million for the third quarter of 2003 due to a 23.4% increase in average subscribers, and a 6.1% increase in ARPU from USD 23.05 in the third quarter of 2003 to USD 24.46 in the current quarter. In Czech Koruna, however, ARPU for the third quarter decreased from CZK 660 in the third quarter of 2003 to CZK 633 for the same period this year. This decrease is primarily attributable to the reduction in interconnection rates. Although the interconnect rate decrease reduces the ARPU, it also reduces interconnection costs.

“We are also very satisfied with the success of our recent €575 million debt refinancing, which reflects a high level of confidence from the capital market and enhances our operating and financial flexibility,“ says Muriel Anton, Oskar’s Chief Financial Officer.

Oskar recorded OIBDA of USD 41.3 million compared to OIBDA of USD 26.0 million for the same period last year. OIBDA as a percentage of service revenues for the quarter reached 31.6% compared to 26% in the third quarter of 2003. This improvement reflects the revenue impact of solid subscriber growth, our focus on postpaid growth and economies of scale realized as fixed costs are spread over the larger subscriber base.

For the first nine months, service revenues increased 37% to USD 371.5 million compared to USD 271.2 million for the same period in 2003. OIBDA reached USD115.2 million, compared to USD 71.7 million for the first nine months of last year.