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 distribution agreement.
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.
"Safe Harbor" Statement under the Private Securities 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.