Stet Hellas Wireless Prepaid Growth Rises 94.7%, Total Customer Base Grows 50.3%

Stet Hellas Wireless Prepaid Growth Rises 94.7%,
Total Customer Base Grows 50.3%

6 October 1999


Media Relations:
Deppie Tzimea-Houliarakis,
+301 618-6160

Investor Relations:
George Rallis, +301 618 6585

Athens, Greece -- Stet Hellas Telecommunications SA
announced today:

  • 106,786 net new Telestet wireless customers during the third quarter
    of 1999
  • Total customers reached 1,034,820
  • 50.3 % year-to-date growth rate across the total customer base
  • 579,185 (56%) B-free prepaid customers; 455,635 (44%) contract
  • 94.7% year-to-date growth rate in prepaid customers

The company anticipated and capitalized on the growth of prepaid
telephony with B-free by Telestet customers increasing 150% in the last
12 months. At the same time, the company maintained a number of high
quality contract customers while handset subsidies were reduced. In the
second quarter Stet Hellas announced a significant reduction in handset
subsidization, a policy Greek mobile phone operators have used to
compete for customers.

The reduction of contract subsidies in May, together with the shift toward
prepaid's lower per-customer costs, have helped the company reduce its
customer acquisition costs and increase profitability.

In the past three months the company launched a loyalty plan for its
existing customers as well as an exclusive and competitive new tariff plan
-- CITYLINES PLUS. CITYLINES PLUS, offered in ten major Greek
cities, addresses customer demand for low monthly fees and competitive
usage costs. It provides the lowest rate in the market for calls from a
mobile phone to fixed lines in a specified, geographic calling area.

The company also introduced two value-added services: TELESTET ON-
LINE STOCK, which provides customers on-demand access to real-time
Athens stock market information, and SMART TOURIST GUIDE, which
provides information on historic and archaeological sites throughout

Stet Hellas Telecommunications S.A. is at the forefront of the mobile
communications industry in Europe. To its growing base of more than 1
million customers in Greece, the company's Telestet brand stands for
innovative services and the latest in communications technology. The
company's shareholders include Stet Mobile Holdings NV, Bell Atlantic
and the Interamerican Group, and its stock is publicly traded on the
NASDAQ (STHLY) and Amsterdam (STHLS) exchanges. Internet users:
Visit our NEW web site at www.telestet.gr.