TIW Reports Strong Fourth Quarter Results.

Business Editors/High-Tech Writers

MONTREAL--(BUSINESS WIRE)--Feb. 24, 2004

Telesystem International Wireless Inc. (TSX: TIW) (Nasdaq: TIWI):

For the fourth quarter and year ended December 31, 2003

All amounts are in US$ unless otherwise stated

- Record subscriber growth
- Revenue of $277.8 million, up 41.4% from 2002
- OIBDA(1) of $94.5 million, up 50.3% from 2002
- Operating Income of $41.1 million, up 120.8% from 2002

Telesystem International Wireless Inc. ("TIW" or the "Company") (TSX, "TIW", Nasdaq, "TIWI") today reported its results for the fourth quarter and the year ended December 31, 2003.

Net subscriber additions for the quarter grew 184%, reaching 624,688 compared to 220,000 for the same quarter of 2002, which generated revenues of $277.8 million compared to $196.5 million for the fourth quarter of 2002. Consolidated operating income before depreciation and amortization (OIBDA)(1) increased 50.3% to $94.5 million compared to $62.9 million for the fourth quarter of 2002. The strong growth in OIBDA reflects the continued solid financial performance in Romania and improved results in the Czech Republic where the Company's operating subsidiary recorded its third quarter of positive operating income. Net loss for the quarter was $0.7 million or $0.01 per share basic and fully diluted compared to a net loss of $35.6 million or $0.35 per share for the fourth quarter 2002.

"We are very pleased with our fourth quarter and full year results, as both of our operations continue to record outstanding performances, with consolidated revenue approaching $1 billion in 2003. In Romania, MobiFon maintained its leadership position and continued to generate strong margins and higher operating income", said Bruno Ducharme, President and Chief Executive Officer of TIW. "During 2003, Cesky Mobil generated strong results and demonstrated the effectiveness of its marketing programs and segmented product offerings for attracting high value subscribers," added Mr. Ducharme.

Results of Operations

TIW recorded net subscriber additions for the fourth quarter of 624,688 to reach total subscribers from continuing operations of 5,206,983, up 32.6% compared to 3,927,353 at the end of the fourth quarter of 2002. Consolidated service revenues increased 42.3% to $259.4 million compared to $182.3 million for the fourth quarter of 2002. The strong revenue growth, lower cost of services as a percent of revenues and effective cost management resulted in an operating income of $41.1 million compared to $18.6 million for the same period last year.

As a result of new accounting guidance in Canada regarding stock-based compensation, the Company adopted the fair value based method of accounting for its stock-based compensation. Accordingly, the fair value of grants awarded on or after January 1, 2003 will be charged against income over the vesting period of such options. Selling, general and administrative expenses for the quarter and year-to-date results include stock based compensation cost of $0.3 million.

Net loss for the fourth quarter 2003 amounted to $0.7 million or $0.01 per share basic and fully diluted compared to a net loss of $35.6 million or $0.35 per share for the fourth quarter 2002. The 2002 results include a loss from our Brazil discontinued operations of $27.2 million or $0.27 per share.

For the year ended December 31, 2003, consolidated service revenues increased 40.1% to $914.9 million compared to $652.9 million for the same period last year. Operating income increased 94.0% to $169.9 million from $87.6 million for the same period last year. Income from continuing operations was $20.7 million or $0.21 per share basic and $0.20 per share fully diluted compared to $62.0 million, or $0.66 per share basic and fully diluted in 2002. The 2003 results include a gain of $19.4 million on the sale of a minority interest in MobiFon, while the 2002 income from continuing operations includes a pre-tax non-cash gain of $91.7 million related to the financial restructuring of the Company completed in the first quarter of 2002 and the expiry of the Units during the second quarter of 2002 offset by $10.1 million of expenses related to the early extinguishment of debt in MobiFon. Net income for the year ended December 31, 2003 was $11.9 million or $0.12 per share basic and $0.11 per share fully diluted compared to a net loss of $127.2 million or $1.42 per share basic and fully diluted for the corresponding prior year period. These results included losses from discontinued operations of $8.8 million and $189.1 million, respectively, which related to our discontinued Brazilian cellular operations which were sold on March 26, 2003.

MobiFon S.A. - Romania

MobiFon S.A. ("MobiFon" or "Connex"), the market leader in Romania with an estimated 49.0% share of the cellular market, added 494,961 net subscribers for the fourth quarter for a total of 3,457,042, compared to net additions of 172,648 in the fourth quarter of 2002 and total subscribers of 2,635,208 subscribers at the end of the same 2002 period, an increase of 31.2%. During the fourth quarter, Connex continued to focus on attracting higher-end postpaid subscribers and achieved a 62/38 prepaid/postpaid mix of new subscribers despite the intense Christmas promotional period when operators typically acquire large numbers of prepaid customers. As of December 31, 2003, postpaid subscribers accounted for 37% of Connex's total subscriber base as compared to 36% at the end of 2002.

The fourth quarter of 2003 marked MobiFon's largest quarterly subscriber growth in its history. Management believes such growth to be reflective of the improved economic environment in Romania and increased marketing activities by all operators. During the past 12 months, management estimates cellular telephony market penetration in Romania increased to 32.6% from 23.1% at the end of the fourth quarter of 2002.

Service revenues reached $145.1 million, a 27.3% increase over $114.1 million for the fourth quarter of 2002. This increase was largely attributable to a 25.9% increase in average subscribers. The monthly average revenue per user ("ARPU")(1) for the fourth quarter reached $13.94 compared to $13.83 for the same period of last year. Cost of services increased 33.7% to $30.0 million compared to $22.4 million for the same period last year primarily due to higher interconnection and site costs as a result of the greater subscriber base and network traffic. Selling, general and administrative expenses increased to 24.6% of service revenues compared to 23.1% for the 2002 corresponding period as a result of greater selling and marketing expenses associated with record subscriber growth, as well as, a required build up of customer service to support the postpaid growth. OIBDA increased 15.1% to $67.6 million compared to $58.7 million for the same period last year. OIBDA as a percentage of service revenue decreased to 46.6% compared to 51.5% in the quarter ending December 31, 2002, as a result of costs incurred in acquiring new subscribers, particularly for the postpaid segment. Operating income rose 18.9% to $41.1 million compared to $34.5 million for the fourth quarter of 2002.

For the year 2003 as a whole, service revenues increased 24.4% to $529.5 million compared to $425.6 million for the same period last year. This increase was largely attributable to a 22.4% increase in average subscribers. The ARPU for the year 2003 reached $14.35 compared to $14.19 in 2002, sustained by the increased international interconnection revenues following the deregulation of the Romanian telecom industry. OIBDA increased 21.4% to $281.2 million or 53.1% of service revenue compared to $231.5 million or 54.4% of service revenue for the 2002 period. Operating income rose 18.1% to $170.7 million compared to $144.6 million for 2002.

Cesky Mobil a.s. - Czech Republic

Cesky Mobil a.s. ("Cesky Mobil" or "Oskar") added 108,609 net subscribers in the fourth quarter to reach 1,546,751, an increase of 31.1% compared to 1,179,752 subscribers at the end of the fourth quarter of 2002. The company's focus on postpaid growth continued to be successful with postpaid subscribers representing 61% of net additions during the quarter. As a result, the company's prepaid/postpaid mix as of December 31, 2003 was 58/42 compared to 64/36 at December 31, 2002. Oskar estimates it held a 16% share of the national cellular market as of December 31, 2003, compared to a 14% share at the same time last year. During the past 12 months, management estimates cellular penetration in the Czech Republic increased to 95.2% from 83.2% at the end of the fourth quarter of 2002. According to management's estimate, Cesky Mobil successfully captured 32.5% of the total market new subscriber additions during the year, its best performance ever.

Service revenues increased 67.3% to $114.2 million compared to $68.3 million for the fourth quarter of 2002 primarily due to a 28.7% increase in average subscribers and a 30.3% increase in ARPU. ARPU for the fourth quarter reached Czech Koruna 665.9 ($24.70) compared to Czech Koruna 588.8 ($18.96) for the same period of last year and the average exchange rate between the U.S. Dollar and the Czech Koruna during the fourth quarter of 2003 was 13% higher than for the same period in 2002.

Oskar recorded OIBDA of $31.6 million compared to OIBDA of $7.3 million for the same period last year. This improvement reflects the revenue impact of solid subscriber growth, the company's focus on postpaid growth and the economies of scale realized as fixed costs are spread over the larger subscriber base. Also included in OIBDA in the fourth quarter of 2003, is the effect of a $5.2 million reduction in estimated interconnection costs of which approximately $2.7 million is related to 2002. Selling, general and administrative expenses declined to 29.7% of service revenues compared to 30.8% for the same period last year. Oskar recorded positive operating income of $4.8 million for the fourth quarter 2003, compared to an operating loss of $12.7 million for the fourth quarter of 2002.

For the year 2003 as a whole, service revenues increased 69.5% to $385.4 million(2) compared to $227.3 million for the same period in 2002. OIBDA reached $103.3 million compared to OIBDA of $20.2 million for the year 2002, an improvement of $83.1 million. Operating income reached $9.2 million compared to a loss of $47.2 million for the same period in 2002.

Effective January 2004, the Value Added Tax ("VAT") for telecommunication services went from the 5% to the 22% category. This amendment is one in a series related to public-finance reform and part of the government's effort to combat the state's public deficit. The reforms also call for a decrease in the corporate income-tax rate, from 31% in 2003 to 24% by 2006. Significant effort throughout the entire organization was invested in adapting Oskar's service portfolio for this VAT change and management continues to evaluate the possible impact of this new regulation on future operational results. In recent days, the Czech government proposed the introduction of legislation to reduce the 22% VAT to 19% in the second quarter of 2004.

Corporate and Other

Corporate and other activities generated negative operating income of $4.7 million for the fourth quarter ended December 31, 2003 and negative operating income of $10.0 million for the year 2003, compared to negative operating income of $3.2 million and of $9.9 million respectively for the same periods last year. Included in these results is net income from our Indian operation of $1.4 million and $4.0 million for the three and twelve months ended December 31, 2003 compared to $0.5 million and $3.9 million for the same periods last year as well as a fourth quarter 2003 charge of $1.9 million related to a reduction in personnel at the corporate level.

Liquidity and Capital Resources

For the fourth quarter of 2003, operating activities provided cash of $80.8 million and of $252.8 million for the year 2003 as a whole compared to $39.3 million and $125.1 million respectively in the corresponding 2002 periods, mainly explained by the increase in the 2003 operating income before non-cash items such as depreciation and amortization over the corresponding periods in 2002 offset by higher taxes paid by MobiFon in 2003.

Investing activities used cash of $55.1 million for the quarter ended December 31, 2003, compared to $76.3 million in the corresponding 2002 period as a result of lower acquisitions of property, plant and equipment. For the year 2003 as a whole, investing activities used cash of $145.5 million compared to $242.2 million for 2002. During the 2003 period, the Company received net proceeds of $41.5 million from the sale of a minority interest in MobiFon. Acquisitions of property, plant and equipment for the year 2003 as a whole were lower than in the corresponding period last year and were $188.3 million and $242.9 million, respectively.

Financing activities provided cash of $31.9 million for the fourth quarter and used cash of $41.7 million for the year 2003. The sources of cash provided by financing activities in the fourth quarter included $9.2 million of proceeds from issuance of common shares and $38.1 million proceeds from debt issuance partially offset by $15.1 million distributed to minority shareholders and $0.3 million deferred financing costs. The cash used in financing activities on a year-to-date basis consisted of $28.1 million in additions to restricted short-term investments, $74.6 million distributed to minority shareholders, $47.4 million representing a full repayment of TIW's senior corporate bank facility, $13.2 million of deferred financing costs and $223.9 million in repayment of long-term debt partially offset by $9.5 million of proceeds from issuance of common shares, $18.9 million received from the issuance of subsidiaries' shares to non-controlling interests and $317.1 million proceeds from debt issuance.

During 2002, sources of cash from financing activities included proceeds of $41.2 million from TIW's financial recapitalization, $29.9 million from the issuance of subsidiaries' shares to non-controlling interests and $83.1 million in net long-term debt borrowings. These were partially offset by $36.1 million in repayment of short-term loans, $10.8 million distributed to non-controlling interests in MobiFon, $8.6 million of deferred financing costs and resulted in $98.7 million being provided by financing activities.

In April 2003, MobiFon declared and paid a dividend of Lei 1,974 trillion ($59.1 million) of which the Company's share amounted to $33.5 million. In July 2003, the shareholders of MobiFon approved additional distributions of Lei 1.188 trillion ($35.7 million) by means of a par value reduction that was distributed on October 22, 2003, of which $15.1 million was paid to minority shareholders.

On November 17, 2003, MobiFon Holdings B.V. ("MobiFon Holdings") completed an exchange offer through which all of the Company's outstanding 12.5% Senior Notes issued on June 27, 2003 were exchanged for similar notes registered under the United States Securities and Exchange Commission. During the twelve month period ended December 31, 2003, financing costs in the amount of $9.8 million related to the issuance of these notes were deferred.

Cash, cash equivalents and restricted short-term investments totaled $224.8 million as of December 31, 2003, including $10.3 million at the TIW level, $15.4 million at ClearWave N.V. ("ClearWave") and $45.0 million at MobiFon Holdings which included $28.1 million in restricted short term investments.

As of December 31, 2003, total consolidated indebtedness was $1.1 billion, of which $1.5 million was at the TIW level, $220.1 million at the MobiFon Holdings level, $312.7 million at MobiFon and $587.2 million at Cesky Mobil. Both MobiFon and Cesky Mobil's senior credit facilities were fully drawn at the end of 2003.

On November 5, 2003, the Company acquired 1,009,300 class A subordinate voting shares of ClearWave from an institutional investor, in exchange for the issuance of 1,374,666 common shares of the Company. The 1,009,300 ClearWave class A shares acquired represented a 1.2% equity interest and a 0.4% voting interest in ClearWave. The transaction increased the Company's equity and voting interest in ClearWave from 85.6% and 94.9% respectively, to 86.8% and 95.3% respectively.

On February 2, 2004, the Company acquired from Ceska Konsolidacni Agentura ("CKA"), a Czech state owned agency, its 3.62% stake in Cesky Mobil. The transaction was effected through TIW Czech N.V. ("TIW Czech"), a controlled subsidiary of ClearWave and TIW. CKA sold its equity position in Cesky Mobil following the exercise of an option granted in 1999 as part of the creation of Cesky Mobil. The option allowed CKA to sell the entirety of its stake at a price of approximately 469 million Czech Koruna (approximately $17.5 million), representing the amount paid originally for the 3.62% equity stake, plus compounded interest on such amount of 7% per annum. TIW Czech financed this acquisition via shareholders' contribution. ClearWave owns a 24.2% equity interest in TIW Czech and its share of the purchase price was approximately $5.3 million. Following the transaction, TIW Czech has increased its position in Cesky Mobil from 96.25% to 99.87%.

On February 10, 2004, the Company entered into a definitive agreement to acquire 5.9% of MobiFon from Emerging Markets Partnership (Europe) Limited, an affiliate of Emerging Markets Partnership ("EMP"), in exchange for the issuance of 12,971,119 common shares of TIW's treasury stock. Upon the closing of the transaction as agreed, TIW will increase its equity interest in MobiFon from 50.1% to 55.9%. The transaction is subject to other MobiFon shareholders' pro rata rights of first refusal which, if exercised, will reduce the actual number of shares to be acquired by the Company. At minimum, the Company will acquire a 3.6% interest in MobiFon in exchange for 7,947,820 common shares of the Company. As part of the transaction, EMP who also has a minority position in TIW Czech, will sell to the Company some of its shares in TIW Czech. The number of TIW Czech shares that TIW will acquire depends on the extent to which other MobiFon and TIW Czech shareholders exercise their respective rights of first refusal. If none of those rights of first refusal are exercised, the Company will acquire from EMP a 2.9% equity interest in TIW Czech for a cash consideration that EMP has agreed to reinvest into 1,650,595 additional TIW common shares. TIW would therefore increase its equity interest in TIW Czech from 21.0% to 23.9% upon the closing of the transaction. The closing of the transaction remains subject to certain conditions including regulatory approval and is expected to take place during the first quarter of 2004.

With these transactions, TIW aimed at increasing its economic interest in MobiFon and Cesky Mobil. In the future, TIW may seek to further increase its economic interest in its subsidiaries by proceeding with similar transactions or otherwise.

On November 17, 2003, the Company entered into a private transaction to acquire substantially all of the shares of TIW Asia N.V. ("TIW Asia") it did not already own for an aggregate purchase price of approximately $4.7 million. The transaction, which was finalized on November 25, 2003, was based on pre-existing rights under shareholders agreements and was made at a value derived from the amount of initial contributions made by TIW Asia shareholders. On December 12, 2003, the Company entered into an agreement to sell the 27.5% direct equity interest it held in Hexacom India Limited ("Hexacom") for proceeds of $22.5 million. The Company's co-shareholders exercised their rights of first refusal provided for in the Hexacom Shareholders' Agreement and the sale took place in February, 2004. The Company also holds a 14.7% indirect interest in Hexacom through a minority owned holding company. Existing contractual arrangements impair the ability of the Company to realize value for this indirect participation.

The Company expects to have future capital requirements, particularly in relation to the expansion and addition of capacity of its cellular networks and for servicing of its debt. The Company intends to finance such future capital requirements mainly from cash on hand and cash flows from operating activities.

Conference Call

The conference call with analysts on the fourth quarter 2003 results will be made available via an audio web cast from TIW's Internet site. The web cast is scheduled to begin at 9:00 a.m. EST on Wednesday, February 25, 2004 (at www.tiw.ca). A replay of the conference call can also be heard between 12:00 p.m. on February 25 and 11:59 p.m. on March 26. To access the replay facility, dial [phone] and you will be instructed to enter the access code: 1527479.

Forward-looking Statements

This news release may contain certain forward-looking statements that reflect the current views and/or expectations of the Company with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

About TIW

TIW is a leading cellular operator in Central and Eastern Europe with more than 5.0 million subscribers. TIW is the market leader in Romania through MobiFon and is active in the Czech Republic through Cesky Mobil a.s. TIW's shares are listed on the Toronto Stock Exchange ("TIW") and NASDAQ ("TIWI").

(1) The Company uses the term operating income before depreciation
    and amortization ("OIBDA") and average revenue per user ("ARPU")
    which may not be comparable to similarly titled measures reported
    by other companies.  The Company believes that OIBDA, referred to
    in our previous reporting as EBITDA, provides useful information
    to investors because it is an indicator of the strength and
    performance for the Company's ongoing business operations,
    including its ability to fund discretionary spending such as
    capital expenditure and other investments and its ability to
    incur and service debt.  While depreciation and amortization are
    considered operating costs under generally accepted accounting
    principles ("GAAP"), these expenses primarily represent the non-
    cash current period allocation of costs associated with long-
    lived assets acquired or constructed in prior periods.  The
    Company's OIBDA calculation is commonly used as one of the bases
    for investors, analysts and credit rating agencies to evaluate
    and compare the periodic and future operating performance and
    value of companies within the wireless telecommunications
    industry.  The Company believes that ARPU provides useful
    information concerning the appeal of its rate plans and service
    offerings and its performance in attracting and retaining high
    value customers.  ARPU excludes revenues from other cellular
    networks' customers roaming on the Company's network.  OIBDA and
    ARPU should not be considered in isolation or as alternatives
    measures of performance under GAAP.

(2) Including the effects of a $1.5 million September year-to-date
    reclassification to service revenue from cost of service (See
    Note 14 to Consolidated Interim Financial Statements).


TELESYSTEM INTERNATIONAL WIRELESS INC.
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       SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA

(in thousands of U.S. dollars, except per user and per share data)
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                        Three months ended      Twelve months ended
                            December 31,             December 31,
                          2003        2002        2003         2002
                             $           $           $            $
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STATEMENTS OF INCOME (LOSS)
 AND CASH FLOWS DATA:
   Revenues            277,787     196,461     967,085      694,454
   Operating income     41,116      18,620     169,878       87,586
   Interest
    expense, net       (22,314)    (26,185)    (91,163)    (103,974)
   Foreign exchange
    gain (loss)            666      (4,905)      4,666        2,635
   Net gain (loss) on
    disposal of assets       -           -      19,367         (528)
   Gain on
    Recapitalization
    and Units exchange       -           -           -       91,655
   Expenses related to
    extinguishment of debt   -           -           -      (10,100)
   Income (loss) from
    continuing
    operations            (727)     (8,405)     20,696       61,959
   Loss from discontinued
    operations               -     (27,232)     (8,811)    (189,133)
   Net income (loss)      (727)    (35,637)     11,885     (127,174)
   Basic earnings (loss)
    per share (8)
     From continuing
      operations         (0.01)      (0.08)       0.21         0.66
     From discontinued
      operations             -       (0.27)      (0.09)       (2.08)
     Net earnings (loss) (0.01)      (0.35)       0.12        (1.42)
   Diluted earnings
   (loss) per share (8)
     From continuing
      operations         (0.01)      (0.08)       0.20         0.66
     From discontinued
      operations             -       (0.27)      (0.09)       (2.08)
   Net earnings (loss)   (0.01)      (0.35)       0.11        (1.42)
   Acquisitions of
    property plant and
    equipment           55,064      76,445     188,330      242,893

OPERATING DATA FROM
 CONTINUING OPERATIONS
  Operating income
   before depreciation
   and amortization (1) 94,509      62,867     374,589      242,034


  Proportionate
   revenues (2)        102,312      80,325     363,793      291,575
  Proportionate
   operating income
   before depreciation
   and amortization (2) 35,554      30,264     152,971      120,166
  Average monthly
   revenue per user (7)
    MobiFon              13.94       13.83       14.35        14.19
    Cesky Mobil          24.70       18.96       22.95        17.20



                          As at December 31,      As at December 31,
                                       2003                    2002
                                          $                       $
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BALANCE SHEET DATA:
 Cash, cash equivalents and
  restricted short-term
  investments of $28.1 million
  as of December 31, 2003           224,822                  60,706
 Total assets                     1,667,531               1,441,628
 Short-term and long-term debt    1,121,411               1,010,587
 Total capital (3)                1,327,574               1,302,784
 Total shareholders' equity          91,773                  51,537
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TELESYSTEM INTERNATIONAL WIRELESS INC.
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                OVERVIEW OF CONTINUING OPERATIONS (4)

(as at December 31, 2003)
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                            Start-up    Licensed
                             Date of        POPs             Total
           Technology     Operations   (millions)      Subscribers(5)
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Central/
 Eastern
 Europe
 Cellular
   Romania        GSM         1997         21.7             3,457,042
   Czech
    Republic      GSM         2000         10.2             1,546,751
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                                           31.9             5,003,793
OTHER
 India
 (Rajasthan)      GSM         1997         56.5               203,190
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                                           56.5               203,190
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Total                                      88.4             5,206,983
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                                             Equity
                             Equity            POPs        Equity
                           Interest (6)   (millions)   Subscribers(2)
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Central/Eastern
Europe Cellular
 Romania                      50.1%            10.9      1,731,400
 Czech Republic               20.2%             2.1        312,600
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                                               13.0      2,044,000
OTHER
 India (Rajasthan)            42.2%            23.8         85,700
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                                               23.8         85,700
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                                               36.8      2,129,700
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(1) The Company uses the term operating income before depreciation
    and amortization, ("OIBDA"), referred to as EBITDA in our
    previous reporting, which may not be comparable to similarly
    titled measures reported by other companies.  Operating income
    before depreciation and amortization should not be considered in
    isolation or as an alternative measurement of operating
    performance or liquidity to net income (loss), operating income
    (loss), cash flows from operating activities or any other measure
    of performance under GAAP.  The Company believes that operating
    income (loss) before depreciation and amortization is viewed as a
    relevant supplemental measure of performance in the wireless
    telecommunications industry.  A reconciliation of OIBDA to
    operating income is provided in Note 15 to these interim
    financial statements

(2) Proportionate financial figures and other operational data
    represent the combination of TIW's ultimate proportionate
    ownership in each of its investees and are not intended to
    represent any measure of performance in accordance with generally
    accepted accounting principles. A reconciliation of proportionate
    operating income to consolidated operating income is provided in
    the supplementary information accompanying these interim
    financial statements.

(3) Consists of share capital, warrants and additional paid-in-
    capital.

(4) The results of Central and Eastern Europe are fully consolidated.
    India's results are accounted for in a manner similar to the
    equity method.

(5) Figures include 3,052,299 and 162,563 prepaid subscribers in
    Central and Eastern Europe and India, respectively.

(6) Figures represent the Company's direct and indirect ownership
    interests in its operations before the exercise of options.

(7) The Company uses the term average monthly revenue per user, or
    ARPU, which may not be comparable to similarly titled measures
    reported by other companies. ARPU excludes non-recurring
    miscellaneous revenue and revenue from other wireless networks'
    customers roaming on our network.  ARPU should not be considered
    in isolation or as an alternative measure of performance under
    Canadian GAAP. The Company believes ARPU provides useful
    information concerning the appeal of its rate plans and service
    offerings and its performance in attracting and retaining high
    value customers.

    The following table provides a reconciliation between service
    revenues and ARPU for both MobiFon and Cesky Mobil:


                                                  MobiFon
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                                      Three months     Twelve months
                                          ended            ended
                                       December 31,     December 31,
                                     2003     2002     2003     2002
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Service revenues for the periods
 (in thousands)                   145,146  114,057  529,520  425,567
Average number of subscribers
 for the period (in millions)(i)     3.21     2.55     2.84    2.32
Average monthly service revenue
 per subscriber for the period
 (in $)                             15.07    14.92    15.52   15.27
Less: impact of excluding in
 roaming and miscellaneous
 revenue                            (1.13)   (1.09)   (1.17)  (1.08)
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ARPU                                13.94    13.83    14.35   14.19
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                                                 Cesky Mobil
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                                      Three months     Twelve months
                                          ended            ended
                                       December 31,     December 31,
                                     2003     2002     2003     2002
---------------------------------------------------------------------
Service revenues for the periods
 (in thousands)                   114,221   68,268  385,388  227,342
Average number of subscribers
 for the period (in millions)(i)     1.49     1.16     1.35     1.06
Average monthly service revenue
 per subscriber for the period
 (in $)                             25.51    19.62    23.79    17.87
Less: impact of excluding in
 roaming and miscellaneous
 revenue                            (0.81)   (0.66)    (084)   (0.67)
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ARPU                                24.70    18.96    22.95    17.20
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(i) Calculated as the average of each month's average
    number of subscribers.

(8) On June 23, 2003, the Company amended its share capital to
    implement a one for five (1:5) consolidation of its common
    shares. Following the consolidation, the number of issued and
    outstanding common shares was reduced from 467,171,850 to
    93,432,101 while the number of issued and outstanding preferred
    shares remained unchanged at 35,000,000 but their conversion
    ratio was changed from 1 common share for each preferred share to
    1 common share for 5 preferred shares.  All share and per share
    amounts included in the consolidated financial statements have
    been adjusted to reflect the share consolidation.