News Release

Stet Hellas Wireless Prepaid Growth Rises 94.7%, Total Customer Base Grows 50.3%

October 5, 1999

Media Relations:
Deppie Tzimea-Houliarakis
+301 618-6160

Investor Relations:
George Rallis
+301 618 6585

Athens, Greece — Stet Hellas Telecommunications SA announced today:

  • 106,786 net new Telestet wireless customers during the third quarter of 1999
  • Total customers reached 1,034,820
  • 50.3 % year-to-date growth rate across the total customer base
  • 579,185 (56%) B-free prepaid customers; 455,635 (44%) contract subscribers
  • 94.7% year-to-date growth rate in prepaid customers

The company anticipated and capitalized on the growth of prepaid telephony with B-free by Telestet customers increasing 150% in the last 12 months. At the same time, the company maintained a number of high quality contract customers while handset subsidies were reduced. In the second quarter Stet Hellas announced a significant reduction in handset subsidization, a policy Greek mobile phone operators have used to compete for customers.

The reduction of contract subsidies in May, together with the shift toward prepaid's lower per-customer costs, have helped the company reduce its customer acquisition costs and increase profitability.

In the past three months the company launched a loyalty plan for its existing customers as well as an exclusive and competitive new tariff plan -- CITYLINES PLUS. CITYLINES PLUS, offered in ten major Greek cities, addresses customer demand for low monthly fees and competitive usage costs. It provides the lowest rate in the market for calls from a mobile phone to fixed lines in a specified, geographic calling area.

The company also introduced two value-added services: TELESTET ON- LINE STOCK, which provides customers on-demand access to real-time Athens stock market information, and SMART TOURIST GUIDE, which provides information on historic and archaeological sites throughout Greece.

Stet Hellas Telecommunications S.A. is at the forefront of the mobile communications industry in Europe. To its growing base of more than 1 million customers in Greece, the company's Telestet brand stands for innovative services and the latest in communications technology. The company's shareholders include Stet Mobile Holdings NV, Bell Atlantic and the Interamerican Group, and its stock is publicly traded on the NASDAQ (STHLY) and Amsterdam (STHLS) exchanges. Internet users: Visit our NEW web site at www.telestet.gr.

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