COMCEL Announces Financial Restructuring Agreement.

BOGOTA, Colombia--(BUSINESS WIRE)--Sept. 9, 1999--

Comunicacion Celular S.A., COMCEL, the leading cellular telecommunications company in Colombia, today announced that it has restructured its senior secured term loans. COMCEL had been in negotiations with its senior lenders since mid-June 1999 as a result of the downturn in Colombia's economy.

Under the terms of the restructuring, COMCEL's shareholders subscribed for additional common shares of COMCEL in the aggregate amount of US$75 million, of which US$67.6 million was used to prepay a portion of COMCEL's senior secured loans. The balance will be used by COMCEL for working capital purposes. In consideration, COMCEL's senior lenders have agreed to defer principal payments in the aggregate amount of US$82.6 million, as well as to waive all financial covenants under the loans, with the exception of a maximum leverage test, to August 31, 2001.

As part of the restructuring agreement, Bell Canada International, COMCEL's majority shareholder, contributed US$65 million of the additional equity and COMCEL's other major shareholders, ETB and Telecom, each contributed US$5 million.

"The shareholders' increased investment in COMCEL demonstrates their strong confidence in our business and a positive outlook for our future," said Peter H. Burrowes, President and Chief Executive Officer. "Under President Pastrana, Colombia has taken the necessary steps to revitalize its economy, and we are clearly heading in the right direction. This restructuring agreement allows us to focus on providing superior customer service and to continue to enhance our position as the leading cellular company in Colombia."

Louis Tanguay, Chairman of COMCEL and President and Chief Operating Officer of BCI said: "This two-year financial restructuring agreement will bring some welcome stability to COMCEL and allow the Company to focus all of its efforts on the needs of its customers. We look forward to COMCEL resuming its growth track as the Colombian economy recovers."

Comunicacion Celular S.A., COMCEL, is the leading provider of technologically advanced digital cellular telecommunications services in Colombia, serving more than 750,000 subscribers. COMCEL is one of two providers of cellular telecommunications services in the Country's Eastern Region, representing approximately 18 million people and including Santafe de Bogota, the region's capital. COMCEL's network covered approximately 79% of the population of the Eastern Region of Colombia as of March 31, 1999. COMCEL has been providing cellular services since July 1, 1994.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks are described in the Company's Securities and Exchange Commission filings.