Motorola Completes Strategic Investment in TIW's German ESMR Operations.

BASINGSTOKE, United Kingdom/MONTREAL--(BUSINESS WIRE)--Sept. 30, 1999--

(NASDAQ:TIWI) (ME:TIW.) (TSE:TIW.) Telesystem International Wireless (TIW) is pleased to announce that Motorola, Inc. (Motorola) has made a strategic investment of US$33 million in the German operations (Dolphin Germany) of its subsidiary Dolphin Telecom plc (Dolphin). Motorola will hold an approximate 6.8 % equity stake in the German operations. Motorola's investment in Dolphin Germany is exchangeable, upon certain events initiated by Dolphin, into an equity interest currently representing approximately 2.3 % in Dolphin. Motorola also has an option to double its investment in Dolphin Germany on similar terms until March 31, 2000.

In addition to the equity investment, Motorola and Dolphin have agreed to pursue an alliance in Germany to collaborate on the integration of next-generation digital wireless capabilities for digital Enhanced Specialized Mobile Radio (ESMR, also known as digital PAMR or digital Public Access Mobile Radio) networks using the European TETRA technology standard.

"Motorola is an industry pioneer in the successful development of digital ESMR technologies to serve the business communications market in North America and in other regions of the world," said Yves Marois, president Europe of TIW and chairman of Dolphin. "Motorola's equity participation in our German operations is the result of a shared vision for the ESMR business opportunity and we are pleased with its commitment to our success in Germany," added Marois.

Dolphin is building a pan-European digital ESMR network. It recently began offering commercial ESMR services nationally in the United Kingdom supported by a national television and printed advertising campaign and expects to initiate commercial ESMR services in France before the end of the year. The proceeds of Motorola's equity investment will be used to help fund Dolphin's ESMR network deployment in Germany where initial commercial ESMR services are expected to begin during the summer of 2000.

"The European market for integrated mobile communications for mobile work groups shows great potential," commented Robert L. Barnett, executive vice president of Motorola and president of the company's Commercial, Government and Industrial Solutions Sector. "We are delighted to contribute to Dolphin's success by expanding our strategic and technology alliance with Dolphin in Germany, and expanding our mutual efforts in extending Motorola's product capabilities and Dolphin's service offerings," continued Barnett.

Dolphin is a 78 %-owned subsidiary of TIW. Dolphin is the largest operator of Specialized Mobile Radio (SMR) and ESMR networks in Europe, with approximately 290,000 subscribers in service and licenses covering over 220 million people. It has announced plans to deploy ESMR networks in each country where it holds TETRA licenses: the United Kingdom, France, Belgium, Germany and Portugal. In addition, Dolphin provides SMR services in Spain.

Motorola is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 1998 were $29.4 billion. Motorola has an extensive TETRA client base in Europe. Motorola supplied the world's first commercial TETRA system for Gardermoen Airport in Norway and will be supplying a system for Copenhagen Metro. In addition to receiving public services contracts in Jersey, the Basque Country in Spain and Amsterdam, Motorola also has supplied trial systems in Germany and Hungary. More recently, the company won a contract to implement a system for the Warsaw Police. To date, Dolphin has awarded Motorola two significant TETRA contracts: the first for 150,000 handsets; the second for infrastructure, including a nationwide network for Germany, and an additional 400,000 second-generation handsets. Motorola also has been awarded a contract to supply a TETRA system in Asia.

TIW is a global wireless operator. It develops, acquires, owns and operates wireless telecommunications networks in developing and developed markets throughout the world. In addition to SMR and ESMR services provided by Dolphin in Europe, TIW provides digital cellular services in Romania, Brazil, India and China as well as paging services in Mexico and the Netherlands. TIW is listed on the Montreal Exchange and the Toronto Stock Exchange under the symbol "TIW" and on the Nasdaq Stock Market under the symbol "TIWI."