CompleTel Europe Reports Revenue Growth of 90% for 1st Quarter of 2000 From 4th Quarter of 1999.

Business Editors

PARIS--(BUSINESS WIRE)--May 15, 2000

CompleTel Europe N.V. (Nasdaq NM: CLTL; ParisBourse: CTL), a facilities-based provider of switched local telecommunications and Internet services to business end-users and carriers in Western Europe, today reported revenues of e3.0 million and a net loss, after a e69.7 million non-cash compensation charge, of e97.3 million, or e0.77 per diluted share, for the quarter ended March 31, 2000.

EBITDA for the quarter, defined as earnings before interest, taxes, depreciation and amortization, and other non-cash charges, totaled a negative e15.2 million, which met the company's internal goal. The comparable figure for the first quarter of 1999 was a negative e4.5 million. For the year-earlier quarter, the company had no revenues and a net loss of e5.3 million, or e0.07 per diluted ordinary share on a pro-forma basis, because the shares were then not publicly traded.

Revenues, which included CompleTel Europe's first revenues from its German operations, grew 90% from the previous quarter as the company's metropolitan area networks began operations in Grenoble in France and Essen and Berlin in Germany. For the quarter, CompleTel Europe's French operations reported revenues of e1.8 million and its German operations reported e0.2 million in revenues, with the remaining e1.0 million in revenues generated in the company's London-based Internet-related business.

Following are CompleTel Europe's operational highlights in the first quarter: - Switched revenues totaled e0.7 million as the company continued to

expand its networks. - Non-switched revenues -- for Internet and data access services and

wholesale carrier services -- increased 50% over the previous

quarter. - New on-net customers signed increased to 286 from 124 in the

fourth quarter of 1999. - Total connected on-net customers increased to 117 from 45 the

previous quarter. - The backlog of services for on-net customers more than doubled to

264 from 128 in the fourth quarter of 1999. - At the end of the quarter, CompleTel had 526 network route

kilometers installed in its local loops in 11 cities, up from 370

kilometers at the end of 1999. The company expects to deploy a

total of approximately 2,000 kilometers for its initial 17 cities

in France and Germany by the end of 2003. - Capital expenditures during the quarter totaled e34.5 million

and were well within the company's internal plan. - The company completed an initial public offering of 31,280,000

ordinary shares, including the underwriters' over-allotment, at

e17.50 per share, resulting in gross proceeds to the company of

e547.4 million. - Some new customers include BSN, a large glass manufacturer; two

French regional governments; the Italian embassy in Paris,

Electricite de France, the national electric utility, and

Boulanger, a large retail appliance chain. - Use of CompleTel's networks grew from approximately 1 million

on-net minutes in January to more than 3 million minutes in March,

for a total of 5.9 million minutes for the quarter.

William H. Pearson, president and chief executive officer, said:

"Not only did the first quarter exceed our plans, but the business continues today to build momentum and extend our first-mover advantage. For example, from the end of the first quarter to the first week in May we signed 91 new customers and the service order backlog has increased by 48. Our local networks have increased by 79 kilometers to 605 kilometers. In addition, network utilization continues to grow; we expect that France will be consistently over one million minutes per week by the end of the second quarter.

"In addition to the cities brought on line in the first quarter, our network in Toulouse is operational and our Nice network is expected to be operational later this quarter. Our German network is operational in four cities, including Nuremberg and Munich, which were deployed at the end of the fourth quarter.

"We are obviously pleased that the financial markets gave our fiber-based, on-net, direct-connect strategy two resounding signs of approval in the success of our initial public offering on March 28, which was priced at the top of the expected range, and in the e200 million notes offering that closed in April at an attractive rate despite difficult market conditions.

"We believe more than ever in our sustainable strategy: differentiated local loop assets, on-net direct connections with our own fiber, rapid deployment to give us a first-mover advantage, and strong, experienced European management, giving us a clear route to profitability."

David E. Lacey, chief financial officer, explained that the e69.7 million non-cash charge was recorded as a result of the revaluation of management and employee ownership interests to market value when the company became publicly held on March 28, 2000.

He added that with the successful initial public offering on March 28 and the subsequent issuance on April 13 of e200 million principal amount 14% senior notes due 2010, CompleTel Europe believes that it has the financial resources available to fully fund its current plan of metropolitan networks in 17 cities in France and Germany and its Internet-related services in 18 cities, including London.

Founded in 1998, CompleTel Europe is deploying metropolitan fiber-optic networks in 17 markets in France and Germany and business-oriented, Internet-related services in 18 markets, including London, directly connecting customers to the company's fiber-rich local networks. CompleTel Europe, based in The Netherlands, has a headquarters office in Paris.

NOTE: The information contained in this press release contains "forward looking statements" within the meaning of the U.S. Federal Securities Law. Such statements are based on the current expectations of the management of CompleTel Europe only, and the company's performance is subject to risks, uncertainties and other factors that could cause actual results to differ materially from these statements. Such risks include, but are not limited to, adverse regulatory, technological or competitive developments, decline in demand for the company's services or products, inability to timely develop and introduce new technologies, products and services, pressure on pricing resulting from competition, unforeseen delay, failure to receive on a timely basis necessary permits or other governmental approvals, and delays in the receipt of or failure to obtain any necessary financing which could cause the actual results or performance of the company to differ materially from those described herein. For a more detailed discussion of such risks and other factors please refer to the company's prospectuses and 10-K and 10-Q reports filed with the U.S. Securities and Exchange Commission.

Paris office: Tour Egee, 9-11 allee de l'Arche, 92671 Courbevoie cedex, FRANCE [phone]

                COMPLETEL EUROPE N.V. AND SUBSIDIARIES

            CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                              (Unaudited)
   (Stated in millions of Euros, except share and per share amounts)

                                                Three Months Ended
                                           March 31,         March 31,
                                            2000               1999
                                         ------------       ----------

Revenues                                e         3.0     e         --
                                          -----------         --------

Operating expenses
  Network Costs                                   3.0              0.1
  Selling, general and administrative            13.1              3.5
  Management fee to affiliated party              2.1              0.9
  Non-cash compensation expense                  69.7               --
  Depreciation and amortization                   3.0              0.1
                                          -----------         --------
    Total operating expenses                     90.9              4.6
                                          -----------         --------

Operating loss                                  (87.9)            (4.6)

Other income (expense)
  Interest income                                 0.4              0.5
  Interest expense, net of
    capitalized interest                         (1.9)            (1.2)
  Foreign exchange loss and other
    expense, net                                 (7.9)              --
                                          -----------         --------
    Total other income (expense)                 (9.4)            (0.7)
                                          -----------         --------

Net loss before income taxes                    (97.3)            (5.3)

Income tax provision                               --               --
                                          -----------         --------

Net loss                                e       (97.3)      e     (5.3)
                                          ===========         ========

Basic and diluted loss per ordinary
 share                                  e       (0.77)      e    (0.07)
                                          ===========          =======

Weighted average number of ordinary
 shares outstanding                       126,820,533       76,258,178
                                          ===========       ==========

Adjusted EBITDA                          e      (15.2)      e     (4.5)
                                          ===========          =======


                COMPLETEL EUROPE N.V. AND SUBSIDIARIES

                 CONSOLIDATED CONDENSED BALANCE SHEETS
                              (Unaudited)
                     (Stated in millions of Euros)

                                           March 31,       December 31,
                                            2000             1999
                                         ------------      -----------
           ASSETS

Current assets:
  Cash and cash equivalents              e      521.6       e     57.1
  Receivables                                     4.6              1.7
  Affilliate receivables                          6.6              0.3
  Prepaid expenses and other
   current assets                                12.1             14.7
                                         ------------       ----------
          Total current assets                  544.9             73.8

Long-term assets:
  Property and equipment, net                   123.9             91.9
  Deferred financing costs, net                  12.2              5.1
  Licenses and other
   intangibles, net                               4.2              4.6
  Other long-term assets                          0.8              0.8
                                         ------------       ----------
          Total long-term assets                141.1            102.4

Total assets                             e      686.0       e    176.2
                                         ============       ==========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
  Construction payables                  e       28.4       e     28.6
  Trade accounts payable                         12.9              9.8
  Accrued liabilities                            21.3             12.7
  Affiliate payables                              5.8              2.4
                                         ------------       ----------
            Total current liabilities            68.4             53.5

Long-term debt                                   86.1             79.6
                                         ------------       ----------

Shareholders' Equity                            531.5             43.1
                                         ------------       ----------

Total liabilities and
 shareholders' equity                    e      686.0       e    176.2
                                         ============       ==========