Stet Hellas Director Resigns Board
Distributor, shareholder give notice to terminate relationship with Greek carrier
February 19, 1999
D. Houliaraki, Press Relations
Athens -- STET Hellas Telecommunications S.A. today announced the
resignation from the Board of Directors of Mr. Dimitris
Contominas effective February 15, 1999. Mr. Contominas, who is
associated with Interamerican Life Insurance Company S.A. (a 5%
shareholder of STET Hellas), was elected to the Board of Directors on
April 2, 1996 for a term ending June 30, 1999. No decision has been
made by STET Hellas' Board of Directors regarding the appointment of a
substitute to serve the remainder of this term.
Simultaneously with Mr. Contominas' resignation, Mobitel Electronics
and Telecommunications Systems Commercial S.A., an affiliate of
Interamerican, gave notice that it was terminating with immediate effect
its distribution agreement with STET Hellas. Interamerican also gave
notice that it was terminating with immediate effect its shareholders'
agreement with STET International S.p.A. Since 1996, Mobitel and STET
Hellas have been engaged in an arbitration proceeding in which each party
is seeking damages related to the other party's performance under the
Mobitel's network of independent distributors accounted for
approximately 95%, 72% and 48% of new customer additions in 1996,
1997 and 1998, respectively and approximately 23% of new customer
additions since January 1, 1999. STET Hellas intends to continue its
relationship with a substantial number of these independent distributors
through alternative direct and indirect arrangements.
The distribution agreement with Mobitel provides STET Hellas with a
number of rights and remedies in the event that Mobitel seeks its
termination. STET Hellas is currently evaluating the range of remedies
available to it.
Litigation Reform Act of 1995
The matters discussed in this Press Release included forward looking
statements that are subject to risks and uncertainties, including, but not
limited to levels of competition in the Greek GSM market, general
economic conditions and other risks indicated in filings with the U.S.
Securities and Exchange Commission.