Panafon Hellenic Tel

Formation of New Business

Panafon Hellenic Telecom Co S.A.
14 November 2000



                  New company 'Business Exchanges S.A.'

             Formed through a co-operation agreement between

    EFG Eurobank Ergasias Bank S.A., PANAFON S.A. and Hellas On Line


EFG  Eurobank  Ergasias Bank S.A. (Eurobank), PANAFON S.A (Panafon).  and
Hellas  On  Line  announce  the  formation  of  Business  Exchanges  S.A.
(Business  Exchanges), a company that will provide financial services  to
the  Business-to-Business  market. Subject to approval  by  the  relevant
regulatory and legal authorities.

Business Exchanges will have a share capital of GRD 2bn. Eurobank  will
hold 60% of the new company, Panafon 30% and Hellas On Line 10%.

This major new business initiative is the result of co-operation between
three leading Greek companies, creating a company focused on
Business-to-Business financial services and the creation of electronic
marketplaces.

Business Exchange's strategic goal is to become Greece's largest B2B
financial services provider. The company aims to:

* Create an electronic marketplace hub in Greece that will provide services 
  for companies and participants of all sizes

* Provide connectivity options to other local and international electronic  
  marketplaces, creating new synergies and access to a wide seller and buyer    
 base

* Become a totally neutral 'trusted 3rd party' and to guarantee the provision   
 of the safest and most reliable platform for inter-company transactions.

Business Exchanges was formed with the involvement of several leading Greek  and
overseas companies.  IBM Global Services acted as consultant whilst LogicDis
acted as a technical consultant for the Greek market.

IBM, InTarget and HYPERTECH assisted in the creation of the platform,
BOOZ ALLEN HAMILTON acted as strategic consultants and KANTOR  acted  as
the project's  Management Consultants. The remaining associates  include
the Naftemboriki newspaper, as the content provider.

There  are  a  multitude of associates that will assist  the  success  of
Business Exchanges.  Apart  from all the business  units  of  the  three
principal shareholders, Business Exchanges will co-operate with leading
Greek  companies  such  as  the  Fourlis  Group  of  Companies  (a  Group
dominating  the   electronic  and  household  appliances import and
distribution  field),  Radio Korassidis (a leading electrical  appliances
store   chain),  the  Atlantic  super  market  chain  (with  120  outlets
throughout  Greece), LogisDis (one of the leading information  technology
companies),  SETE Procurement & Trading S.A. (which has more  than  1,000
suppliers as customers) and Famar (a pharmaceutical company). The list of
Business  Exchanges'  associates  is expected  to  increase  through  the
addition of more companies.


George Stefanopoulos
Panafon Group Investor Relations Executive, Tel: +301 6160406,
[email protected], website www.panafon.gr

Eleana Giabana
Panafon Media and Public Relations Manager, Tel: +3 01 6160011

Lulu Bridges,
Tavistock Communications, Tel. +(44) 20 7600 2288

Nicolas Bornozis,
Capital Link, Tel: + (212) 661 7566

Notes to Editors:

1. Panafon's shares are quoted on the Athens Stock Exchange and its GDSs
   are quoted on the London Stock Exchange. The shares began trading on
   Monday 7 December 1998.

2. Panafon has 512,500,000 shares in issue.

3. Panafon is a shareholder in: 
   
   Panafon Emporiki (previously Panavox)    100.00 per cent
   Panafon Services                         100.00 per cent
   Panafon Multimedia                              100.00 per cent
   Radio Korassidis Telecom                  26.11 per cent
   Unifon                                          19.56 per cent
   Mobitel                                   25.01 per cent
   Citicom                                   11.518 per cent
   Ideal Telecom                             51.00 per cent (following          
                                                           completion
                                                            of all legal
                                                            procedures

4. Panafon was awarded a license to operate a GSM network in Greece for a       
  period of 20 years in August 1992. The network commenced operations on 
   1 July 1993.

5. Panafon's shareholding structure is as follows: 
   
   Vodafone Group Plc                       55 per cent
   France Telecom                      3 per cent
   Intracom S.A.                            10 per cent
   Free float                               32 per cent


PANAFON listings:
Shares: Athens SE, Reuters PANr.AT. Bloomberg PANF GA. Nominal value GRD
100. ISIN GRS 307 333 005. SEDOL 556 0349. 
GDRs: LSE . Reuters PANq.L. Bloomberg PFH GR, PFHD LI. ISIN US 6981 132 060.
SEDOL 556 0361. 
Rule 144A: Bloomberg Nasdaq 2250Q US. ISIN US 6981 131 070. SEDOL 230 2629
Indices: FTSE/ASE 20, FTASE, 3.267%. Bloomberg Europe, BE500,.140%. 
BBG Eur Telecom, BETELES, 1.190%. BBG Europ Techn, BETECH, 1.237%.