TIW Adds Record 300,000 Cellular Subscribers in Third Quarter and Achieves Strategic Objectives in Central/Eastern Europe and Asia.

MONTREAL--(BUSINESS WIRE)--Nov. 17, 1999--

(ME:TIW.) (TSE:TIW.) (NASDAQ:TIWI)

HIGHLIGHTS

     For the third quarter and first nine months ended September 30,
199ribers, excluding paging subscribers of 178,600, SMR (ESMR)
  subscribers reached 284,000 compallular subscribers and 209,800 SMR and ESMR
  subscribers.

* Dolphin Telecom plc (Dolphin), launched ESMR g period of
  1998.  Consolidated EBITDA was $3.6 million compared to $22.8
  million and the net loss was $61.3 million ($0.85 per share)
  compared to $32.2 million ($800
  license in the Czech Republic in competition against some of
  Europe's largest mobile operators.

* Subsequent to the end of the quarter, TIW Asia N.V. was created
  with an initial capital commitment of $402 million and the goal of
  becoming a leading wireless operator in Asia.

PRESS RELEASE

For the third quarter and first nine months ended September 30, 1999

All amounts are in US$, unless otherwise stated

TIW ADDS RECORD 300,000 CELLULAR SUBSCRIBERS IN THIRD QUARTER AND ACHIEVES STRATEGIC OBJECTIVES IN CENTRAL/EASTERN EUROPE, AND ASIA

Telesystem International Wireless Inc. (TSE, ME, "TIW", Nasdaq, "TIWI") today reported its results for the third quarter and first nine months ended September 30, 1999.

TIW reached significant milestones in the third quarter of 1999, highlighted by the achievement of strategic objectives in Central/Eastern Europe (CEE) and Asia, and the net addition of 301,200 cellular subscribers - a record for a quarter - solely from internal growth.

Total subscribers, excluding paging subscribers of 178,600, reached 2,122,600. The total number of cellular subscribers rose to 1,838,600, representing a 77 % increase from 1,040,400 at the end of the corresponding period last year. Total Specialized Mobile Radio (SMR) and digital SMR (ESMR) subscribers reached 284,000 compared to 204,700 at the end of the corresponding period last year.

On a proportionate basis, excluding 114,400 proportionate paging subscribers, TIW had a total of 687,400 proportionate subscribers at September 30, 1999, of which 477,600 were cellular subscribers and 209,800 SMR and ESMR subscribers.

Dolphin Telecom plc (Dolphin), launched digital specialized mobile radio (ESMR) services on a commercial basis in the United Kingdom in the second half of the quarter and had 1,300 ESMR subscribers as of September 30, 1999. The connection rate has subsequently improved, and the number of ESMR subscribers increased to 6,200 at the end of October.

Strategic Highlights

The Czech Republic awarded the country's third cellular license to a TIW-led consortium, Cesky Mobil a.s., in competition against some of Europe's largest mobile operators. The license agreement for the GSM 1800 frequency was signed in October and TIW has started network deployment, working towards commercial launch in the first quarter of 2000.

Subsequent to the end of the quarter, TIW also realized a key strategic objective in Asia by creating an affiliate company with the goal of becoming a leading wireless operator in the region. With an initial capital commitment of $402 million, and TIW's cellular operations in India and China as initial investments, TIW Asia N.V. will primarily focus on the acquisition of existing mobile operators and the development of new services or technologies within new or existing companies.

"With the Czech Republic license and the creation of TIW Asia, we have attained an important strategic objective: to leverage existing operations into regional clusters in Central/Eastern Europe and Asia," noted Bruno Ducharme, President and Chief Executive Officer. "Our entry into the Czech market makes TIW one of a handful of mobile operators in Central/Eastern Europe with subsidiaries in at least two very attractive markets. In Asia, we have been patient after gaining early entry at an attractive price. Now we have the scale and scope to seize the tremendous opportunities in this region. TIW has the market knowledge and operating expertise to develop its clusters in Central/Eastern Europe and Asia into successful, high-growth businesses" added Bruno Ducharme.

Results of Operations

TIW's operating subsidiary in Romania demonstrated why it is considered one of the most dynamic cellular operators in Central/Eastern Europe with the record net addition of 125,700 subscribers in the third quarter. Total subscribers rose to 553,800 after only 30 months of commercial activity, representing a 125 % increase from 246,100 at the end of the third quarter of 1998. EBITDA (earnings before interest, taxes, depreciation and amortization) reached a monthly average rate in excess of $5 million.

Brazilian operations, stimulated by the recent launch of pre-paid services, added 173,700 net new subscribers for a second consecutive quarter of strong internal growth. Total subscribers reached 1,254,800, a 61 % increase from 780,900 as of September 30, 1998.

Following the commercial launch of ESMR services in the U.K., Dolphin intends to extend its digital services to France in December with pre-commercial launches in Paris, Marseille and Lyon. Full commercial services are planned for the second quarter of 2000 in France and the third quarter in Germany.

Consolidated revenues increased to $156.3 million in the third quarter compared to $123.9 million in the corresponding period of 1998, mostly as a result of strong growth in the Company's cellular operations, partly offset by the devaluation of the Brazilian currency. For the first nine months of 1999, consolidated revenues were $425.4 million compared to $231.8 million last year. Of this increase, $115.2 million resulted from the acquisition of the Brazilian A-Band companies in July 1998.

TIW posted consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.6 million in the third quarter compared to $22.8 million in the same period in 1998. The decline is mainly attributable to losses incurred by Dolphin during the initial launch of its ESMR network in the U.K. and pre-operational expenses incurred in relation to the build-out of ESMR networks in France and Germany. Consolidated EBITDA was $30.6 million for the first nine months of 1999 compared to $5.2 million for the similar 1998 period.

Net loss for the period was $61.3 million ($0.85 per share) compared to $32.2 million ($0.44 per share) in the third quarter last year. The 1999 net loss includes a dilution gain of $21.4 million ($0.29 per share) resulting from a strategic investment by Motorola Inc. in Dolphin's German operations.

For the first nine months of 1999, net loss was $105.7 million ($1.49 per share) compared to $97.4 million ($1.42 per share) in 1998. The 1999 net loss includes dilution gains of $147.2 million ($2.01 per share) resulting from the Motorola investment mentioned earlier and the sale of a portion of TIW's ownership in Dolphin through a private equity offering completed in the second quarter.

SEGMENTED RESULTS

Dolphin SMR/ESMR

Service revenues for the third quarter were $22.7 million compared to $19.3 million a year ago. For the first nine months, service revenues were $67.4 million compared to $45.1 million in the similar 1998 period, reflecting acquisitions in the first quarter of this year, partly offset by a decrease in Dolphin's existing analog subscriber base. The number of analog SMR subscribers as of September 30, 1999 was 282,700 compared to 204,700 as of September 30, 1998. Dolphin had 1,300 ESMR subscribers as of September 30, 1999 following the commercial launch of these services towards the end of the quarter and supported by a national advertising campaign beginning September 12, 1999. Late deliveries of terminals and accessories in the third quarter contributed to the relatively low number of connected ESMR subscribers at the end of the period. The connection rate has subsequently improved, and the number of ESMR subscribers increased to 6,200 at the end of October.

As a result of losses incurred during the initial launch of its ESMR network in the U.K. and pre-operational expenses related to the build-out of ESMR networks in France and Germany, Dolphin recorded negative EBITDA of $22.8 million in the third quarter compared to EBITDA of $1.7 million a year ago. For the first nine months, Dolphin posted negative EBITDA of $38.6 million compared to EBITDA of $3.0 million in the similar 1998 period. Dolphin's EBITDA is expected to be increasingly negative as the company rolls out ESMR services in U.K., France and Germany.

Brazil Cellular

Service revenues for the third quarter increased to $53.8 million compared to $50.3 million in the same 1998 period. For the first nine months, service revenues rose to $155.0 million from $54.4 million a year ago, reflecting the acquisition of Telemig and Tele Norte in July 1998 and the launch of commercial services by Telet in February 1999, largely offset by a 39 % devaluation of the Brazilian currency over the last 12 months. Total subscribers reached 1,254,800, representing a 61 % increase from 780,900 as of September 30, 1998.

Brazilian operations added 173,700 new subscribers in the third quarter, almost identical to the net additions recorded in the previous quarter. Telemig continued to lead the way with 90,300 new subscribers while Telet added 48,600.

EBITDA was $18.1 million in the third quarter compared to $19.0 million in the similar period, with the A-Band operations, Telemig and Tele Norte, recording positive results and the less mature B-Band operations, Americel and Telet, posting losses. For the first nine months, EBITDA was $47.8 million compared to $16.4 million in the similar 1998 period.

CEE Cellular

TIW created TIW Eastern Europe N.V. to hold its investments in Central and Eastern Europe namely MobiFon S.A. and Cesky Mobil, a.s.

Service revenues for MobiFon in the third quarter increased to $57.3 million compared to $37.7 million and, for the first nine months, rose to $148.9 million from $90.3 million a year ago, as a result of accelerated subscriber growth, partly offset by lower average revenue per subscriber. Total subscribers more than doubled to 553,800 from 246,100 at the end of the third quarter 1998.

MobiFon enjoyed its highest ever internal growth in a single quarter with the net addition of 125,700 subscribers in the third quarter. This was nearly double the net additions in the preceding three months and demonstrates the strength and visibility of the CONNEX brand, the popularity of its services and improving consumer confidence.

As of the end of the third quarter, the company had completed its network deployment with 86 % population coverage, as stipulated in its license. MobiFon has started to use its network to deliver value-added services and has launched ISP services.

EBITDA increased 159 % in the third quarter to $15.5 million from $6.0 million a year ago. For the first nine months, EBITDA was $40.9 million compared to $1.7 million in the same 1998 period. This strong growth reflects higher revenues and increasing economies of scale as MobiFon expands its subscriber base.

As Cesky Mobil won its GSM 1800 license on September 29, it had no material impact on the results of operations of the Company for the third quarter. TIW, through a controlled affiliate that owns 51 %, is the managing shareholder of Cesky Mobil.

Asia Cellular, Corporate and Other

Cellular subscribers in India and China reached 30,000 from 13,400 at the end of the third quarter of 1998. Total subscribers for paging services declined to 178,600 as of September 30, 1999, from 192,100 as of September 30, 1998, and increased by 3,300 on a sequential basis from the quarter ended June 30, 1999. Negative EDITDA was $7.3 million and $19.5 million for the three months and first nine months periods ended September 30, 1999, compared to $3.9 million and $16.0 million for the corresponding periods last year, respectively. Negative EDITDA reflects mainly unallocated corporate and business development expenses.

The creation of TIW Asia subsequent to the end of the quarter, with an initial capital commitment of $402 million will allow TIW to participate opportunistically in growth in Asia. TIW has committed $125 million, comprised first of its India and China investments (at an agreed value initially equal to historical cost, to be reset by no later than December 31, 2000 based on their fair market value) and second of a cash commitment for the balance to be drawn upon, based on the timing of TIW Asia'sash equivalents was held at the operations level, including $371.6 million by Dolphin.

Total consolidated indebtedness as of September 30, 1999 was $1,574.3 million, including $446.6 million at the corporate level. Corporate indebtedness included $389 million in accreted value of senior discount notes and $43 million drawn on TIW's $140 million revolving term credit facility.

Acquisitions of capital assets were $142.3 million in the third quarter and $362.8 million for the first nine months of 1999 of which $75.5 million and $181.2 million respectively, were attributable to the build-out of Dolphin's ESMR networks. TIW has selected Ericsson and Siemens as the equipment suppliers for the GSM 1800 network in the Czech Republic and has obtained deferred payment terms from them until July 2000 for the deployment of the network. The installation of cell sites commenced in the fourth quarter and Cesky Mobil expects to launch commercial services in the first quarter of 2000.

During the third quarter, the second installment was paid to the Brazilian government in connection with the acquisition of Telemig and Tele Norte. The amount of the payment was approximately $197.6 million, of which approximately $96.8 million was contributed by TIW. The third and final installment is due in August 2000.

Also during the quarter, Motorola Inc. acquired a 6.8 % equity stake in Dolphin's German subsidiary for a cash consideration of $33 million. Motorola's investment 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. The implied equity value of Dolphin as a result of this strategic investment by Motorola ismany has obtained a bank financing commitment dmpliance projects. Most of the Company's operatiion and is finalizing testing and contingency p month of November.

The Company relies in n of any service or operation. Such interruptios factors such as the limitation itself in diago the malfunction of non-critical components. Tain forward-looking statements that reflect theresults and events may vary significantly.

About TIW

TIW is a rapidly-growing, global mobile the Montreal Exchange and the Toronto Stock Ex is the cellular market leader in Romania and w INTERNATIONAL WIRELESS INC. ---------------------------------------------------------------------

SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA

(in thousands of US dollars, except operating and per share data) ------------------------------------------------------- STATEMENTS OF LOSS

AND CASH FLOWS DATA:

Revenues 156,314 123,912 425,432 231,45) (62,800)

Interest expense, net (4of December 31, 1998

holders' equity 107,964 216,977

As of September 30, 1Subscribers

175.0 284,000 209,800

Brazil ----------------------------------------------30, 1999) -------------------------------------ations (millions) Subscribers(2) ------------9.2 72,100

France TET ANALOG 1993 82.3 152

235.0 997 13.4 190,500 Telet

TDMA  Q1 1999 9.9 111,300 ------------MANIA

GSM Q2 1997 22 Q2 1997 49.4 12,400 China (Hun--------------------------------------------

ibers --------------------------------------------------------------------- DOLPHIN United

Kingdom ance TETRA  -- 77.2 % 45.5

-

ANALOG 1990 77.2 % 44.1 31,300

Germany TETRA(4) -- 72.5 % 59.7 -

ANALOG 1993 72.5 % 59.7 110,300

Belgium TETRA -- 73.0 % 7.4 -

ANALOG 1996 73.0 % 7.4 1,800

Portugal TETRA -- 50.6 % 5.0 -

ANALOG 1994 50.6 % 5.0 5,000

Spain ANA 175.6.0 121,500

ROMANIA GSM Q2----------------------- ----------------------- are proportionately consolidated. The results of Telemig and

Tele Norte are fully consolidated at the Telpart level.

However, the Company proportionately consolidates the results of

Telpart, in which it has a 49.0 % equity interest. (2) Figures include 274,000, 205,700, 15,100 and 2,300 prepaid

subscribers in Brazil, Romania, Mexico and India, respectively. (3) Figures represent the Company's direct and indirect ownership

interests in its operations before the exercise of options.

Option exercises would change the Company's equity interests as

follows: (i) in United Kingdom and Spain, from 77.8 % to 76.0 %;

(ii) in France, from 77.2 % to 76.0 %; (iii) in Germany, from

72.5 % to 76.0 %; (iv) in Belgium, from 73.0 % to 76.0 %; (v) in

Portugal, from 50.8 % to 49.4 %; (vi) in Romania, from 62.0 % to

55.8 %; (vii) in India, from 33.5 % to 42.5 %. (4) In Germany, the Company operates within the TETRA frequency band

and its license authorizes both analog and digital SMR networks.