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Panafon Hellenic Tel (PFHD)


Wednesday 28 February, 2001

Panafon Hellenic Tel

3rd Quarter & 9 Mths Results

Panafon Hellenic Telecom Co S.A.
28 February 2001

28 February 2001

                               DECEMBER 2000 1

PANAFON Hellenic Telecommunications Company S.A. ('PANAFON'), the leading
provider of mobile telecommunications in Greece, announces continuing growth
in revenues and profits for the 9-month period ended 31 December 2000.

Revenues were GRD 220.3 bn (Euro 646.6m), an increase of 4% compared to the
corresponding 1999 period, while EBITDA (earnings before interest, tax,
depreciation and amortisation) increased to GRD 96.1 bn (Euro 281.9m), an
increase of 7.3% on the corresponding 1999 period.

EBITDA margin was further strengthened and now stands at 43.6% compared to
42.2% for the corresponding 1999 period, demonstrating significant
productivity gains and operating efficiencies.

Income before tax was GRD 68.1 bn (Euro 199.6m) compared to GRD 63.1 bn (Euro
185.0m) in the corresponding1999 period, representing an increase of 7.9%,
reflecting lower interest expenses due to stronger cash flow and lower
interest rates.

During the period, Panafon invested GRD 64 bn (Euro 187.8m) for the expansion
and upgrading of its network.

These results highlight the strength and ability of Panafon to produce
significant financial growth and profitability in an environment of intense
competition whilst continuing to deliver value to its shareholders and

In February 2001 Panafon, in partnership with Vodafone, was awarded the second
GSM licence in Albania for USD 38m (Euro 41.5m).

Panafon announces today that it will have a majority stake in the joint
venture company with Vodafone Group that will operate the GSM network in
Albania. This represents a further step in Panafon's strategy to play a key
role in the Balkans region in partnership with Vodafone Group.

Finally Panafon announces its intention to take a 20% stake in a joint venture
with Vizzavi Europe. The new company will be called Vizzavi Hellas and will be
the Greek portal of Vizzavi focusing its activities in the development and
exploitation of fixed and mobile internet and e-commerce. Vizzavi Hellas will
initially capitalize on Panafon's original portal, which will be
rebranded   '', and will ultimately migrate onto Vizzavi's
European platform.

In recent months, Panafon has announced several important milestones that will
further consolidate its ability to provide value to shareholders and

In February 2001, Panafon announced that is has agreed to acquire a 51% equity
stake in the Greek Company Ideal Telecom. The agreement with Ideal Telecom was
finalised after the approval from the relevant regulatory authorities and will
contribute significantly to the deployment of Panafon's Data Communications
strategy by utilising both companies' expertise and synergies in the areas of
Virtual Private Networks, Voice over IP services and Satellite Communications.
Ideal Telecom will issue new share capital which will be covered by Panafon in
April 2001.

In January 2001 Panafon announced the launch of its GPRS (General Packet Radio
Service) system in Greece, following the completion of successful commercial
trials with corporate customers.

During the quarter ended 31 December 2000, Panafon made some important
strategic moves to enrich its product and service offering:

*    Panafon changed its brand name to 'Panafon-Vodafone'. The change of
name marks a new era for its customers, who will benefit from being part of
the biggest worldwide telecommunications family and enjoy common innovative
products and global services together with over 78 million proportionate
customers around the world

*    The Boards of Panafon, Panafon Emporiki S.A and Unifon S.A announced
their intention to merge. The three companies will merge under a corporate
scheme whereby Panafon will acquire the issued share capital of both
Panafon Emporiki and Unifon. Panafon Emporiki and Unifon are Panafon's
largest Service Providers. The merger is subject to approval from the
Shareholders General Assembly as well as clearance from legal and
regulatory authorities.

The merger will create significant opportunities in terms of economies of
scale, management synergies, reduction of distribution network costs and time
to market efficiencies.

*    Panafon was granted a fixed wireless licence in the 25GHz band after
participating in the Greek LMDS auction in December 2000. The license allows
Panafon to offer integrated telecommunications services to its corporate
customers, utilising the advantages of the liberated Greek telecommunications

*    Panafon announced its intention to acquire a 30% stake in 'Business
Exchanges', an incorporated B2B company, to be established in co-operation
with EFG EUROBANK ERGASIAS S.A., a leading Greek Bank, and HELLAS ON LINE, a
major Greek Internet Service Provider. 'Business Exchanges' aims to offer a
wide range of products and services in the field of e-commerce and to become
Greece's largest B2B Service Provider. The formation of the new company is
subject to approval from the relevant regulatory authorities.

*    Panafon introduced a new innovative prepay product targeted at the
younger generation, branded 'CU'. This is the first product in the market that
directly links GSM and Internet and has proven very popular with customers.

1  These financial results are drawn up in accordance with the Greek Generally
Accepted Accounting Principles (GAAP), and are published by Panafon as an
obligation to the Athens Stock Exchange.  Panafon will announce financial
results for the Financial Year (1/4/2000 to 31/3/2001), in accordance with the
International Accounting Standards (IAS), at the end of May 2001.


For Further Information Contact:

Dimitris Tsorbatzoglou

Panafon Head of Investor Relations  Tel: +301 6160019

[email protected], website

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 and GDS's began trading
on Monday 7 December 1998 in ASE and LSE respectively.

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

3.      Panafon is a shareholder in:

Panafon Emporiki (previously   100.00 per cent
Panafon Services               100.00 per cent
Panafon Multimedia             100.00 per cent
Next Net                       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)

5.      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

6.      Panafon's shareholding structure is as follows:

Vodafone Group Plc                            55 per cent
France Telecom                                3  per cent
Intracom S.A.                                 9.1 per cent
Free float                                    32.9 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: Greece ASE composite (ASE): 6.539%, Greece ASE industrial (ASEIND):
16.254%, FTSE/ASE 20: 2.827%, Bloomberg Europe (BE500): 0.059%, BE500 TELECOM
0.240, FTSE EUROTOP 300 (E300): 0.016%, FTSE E300 TELECO (E3TELE): 0.135%, BBG


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