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Panafon Hellenic Tel (PFHD)

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Wednesday 17 November, 1999

Panafon Hellenic Tel

Interim Results

Panafon Hellenic Telecom Co S.A.
17 November 1999


                            
           PANAFON ANNOUNCES H1 99/00 RESULTS
                            
           STRONG PROFITABLE GROWTH CONTINUES
                            
             REVENUES OF GRD 138 bn (+ 23%)
        PROFIT BEFORE TAX OF GRD 45.5 bn (+ 30%)
                    43% EBITDA MARGIN




PANAFON   Hellenic   Telecommunications   Company    S.A.
('PANAFON'),    the    leading   provider    of    mobile
telecommunications in Greece, announces half year results
for  the  6  months  ended 30 September  1999.  PANAFON's
fiscal year end is now 31 March, to conform with Vodafone
AirTouch group disclosure.


1. Overview

PANAFON,  the  leading Greek cellular operator,  delivers
strong   growth  and  profitability.  Within   a   highly
competitive environment, PANAFON has achieved significant
growth in profits and consolidated its leadership in  the
Greek cellular market. The company leads the market  both
in terms of market share and revenues:

*   Profitable  growth is reflected in a 23% increase  in
    revenues,  30% increase in Profit Before Tax  and  an
    EBITDA margin of 43%.
*   Customer  numbers reached 1,488,386  by  the  end  of
    September  1999,  an  increase of  approximately  57%
    compared to the end of September 1998.
*   Continued  growth in the Greek cellular  market  with
    penetration of approximately 31% at the period end.
*   PANAFON's  unique  distribution  network  now  totals
    around 2,200 retail outlets.
*   The   company   has   increased   its   international
    presence,  with continued sales of its  leading  edge
    Management  Information  Systems,  the  offering   of
    billing services to Vodafone - Hungary.



George Koronias, CEO of PANAFON, commented:

'Our first half financial results reflect and confirm our
position as the most profitable mobile telecommunications
company  in  Greece.  PANAFON  has  achieved  its  goals.
Increased  profitability and high  margins  indicate  our
ability  to  offer  shareholders  value.  We  aim  for  a
healthy,  profitable and dynamic market development  that
will  allow  us  to support our investment  policies  and
fulfill our strategic plans'.
                            

2. Financial Review
                            
         Summary Consolidated Financial Results

                                      =======        =======       =======
                                     6 months       6 months              
                                   to 30-9-99     to 30-9-98
                                    Unaudited      Unaudited      % change
                                       GRD bn         GRD bn              
                                      =======        =======       =======
Revenues                                138.3          112.5         22.9%
EBITDA                                   59.4           46.1         29.0%
EBITDA margin                           42.9%          40.9%              
Operating Profit (EBIT)                  49.2           38.5         27.7%
Profit before tax                        45.5           35.0         30.0%
Profit before tax margin                32.9%          31.1%              
Earnings per share (GRD)                56.96          39.20         45.3%
Customers at 30 September           1,488,386        949,173         56.8%
                                      =======        =======       =======

The period under review has been another one of improving
sales  and  profitability, capitalizing on  the  positive
effects   of   strong  roaming  revenues  and  controlled
customer acquisition costs.

Revenues  for  the  6  months  ended  30  September  1999
increased  by 22.9% to GRD 138.3 bn over the  comparative
period  for 1998.   This increase in revenues reflects  a
7%  increase  in monthly service fees, a 28% increase  in
airtime  revenues  and  a 22% increase  in  merchandising
income.  Visitors  roaming revenue  contributed  8.4%  of
PANAFON's consolidated first half revenues. This increase
was  driven by the large number of tourists that  visited
Greece during the summer.

The  overall  increase  in total  revenues  reflects  the
dynamics of the Greek cellular market which has continued
to   experience   accelerated  growth  with   penetration
reaching 31.2% at the end of September 1999 compared with
almost  half  that  (16%) at the end of  September  1998.
PANAFON  has  maintained its leadership in  this  growing
market accounting for approximately 45.5% of customers at
the end of September 1999.

The  customer base has increased by 56.8% during  the  12
month  period ended 30th September 1999, from 949,173  to
1,488,386. Contract customers amounted to 704,924  (47.4%
of  PANAFON's  customer base) with 'Panafon  a-La-Carte',
the  company's pre-paid product, accounting for 52.6%  of
the  customer base.  Total net additions in the 12  month
period  to  30  September 1999 amounted  to  539,213.  As
anticipated,  the  increasing  proportion   of   pre-paid
customers, who traditionally have lower levels of  usage,
has had an impact on the average monthly revenue per user
('ARPU')  which  was GRD 17,362 for the 6  months  to  30
September 1999 compared with GRD 23,022 for the 6  months
to 30 September 1998. Over the same period, PANAFON's pre-
paid customer base increased from 307,990 to 783,462.

Gross  Profit increased by 34.1% to GRD 74.0 bn in the  6
months  ended September 1999 compared to GRD 55.1  bn  in
the  comparative 6 month period in 1998. Gross margin  is
up  to  53.5%  from 49.0% in the same period  last  year,
reflecting  the positive impact of PANAFON's  initiatives
to  keep customer acquisition costs at reasonable  levels
and maintain focus on profitable growth.

SG&A   (selling,   general  &  administrative   expenses)
increased  from  GRD 16.6 bn in the  6  months  ended  30
September  1998,  to  GRD 24.7 bn  in  the  period  under
review.  As a percentage of revenues SG&A increased  from
14.7% for the six months ended 30 September 1998 to 17.9%
for   the   same   period  in  1999.  Nevertheless   this
constitutes a decrease from 18.4% of revenues  that  SG&A
represented in the first quarter of this fiscal year.

EBIT  for  the 6 months ended 30 September 1999 increased
by  27.7%  from GRD 38.5 bn to GRD 49.2 bn.  EBIT  margin
stands at a healthy 35.6% .

EBITDA  (earnings before interest, tax, depreciation  and
amortisation) increased by 29.0% to GRD 59.4 bn for the 6
months to 30 September 1999 compared with GRD 46.1 bn for
the comparative 6 month period in 1998. EBITDA margin has
increased  to  42.9% from 40.9% in the same  period  last
year.

As a result of all the above, income before tax increased
by  30.0%, reaching GRD 45.5 bn in the 6 months ended  30
September 1999 from GRD 35.0 bn in the comparative period
last year.

Earnings  per share have continued to improve  increasing
by  45.3% in the 6 month period ended 30 September  1999,
reaching  approximately  GRD  57  from  GRD  39  in   the
comparative period last year.


3. New Value Added Products and Services / Loyalty tariff
plans

Data  and internet services, such as [email protected] which offers
remote access to the internet and e-mail through existing
ISPs  and  the Fax Transmission service which allows  fax
transmissions, through the GSM network, offer added value
to  the  corporate  customer who  needs  the  ability  to
communicate remotely from any location.

During  the  6  month  period to 30 September  1999,  the
company  introduced two new value added services, Panafon
[email protected] and SMS Plus, which offer various possibilities
in  sending  and receiving short messages  via  a  mobile
phone,  e-mail or fax.  In addition, in July 1999 PANAFON
introduced  a  loyalty tariff plan (VALUE Plus)  for  its
existing  customers  and  also  a  new  tariff  plan   in
September  1999, (VALUE), for attracting  new  customers.
Both  programs are addressing customers' demands for  low
monthly access fees and simple tariff schemes, which also
reward incremental usage.



4. Service Provision

PANAFON owns a unique distribution network comprising six
exclusive service providers who have around 2,200  retail
points of sale.

PANAFON  currently  holds  a 19%  stake  in  Unifon,  its
largest service provider in terms of subscribers.  Unifon
was  listed  on the Athens Stock Exchange in  June  1999.
PANAFON's original investment in Unifon amounted  to  GRD
5.6 bn. This share is now valued at approximately GRD  50
bn.

In  addition,  the  company has  a  30%  stake  in  Radio
Korassidis  Telecom, which has also received approval  to
list in the parallel market of the Athens Stock Exchange.
PANAFON's strategy includes plans to participate  in  all
its  service  providers  by taking  significant  minority
stakes .


5.   Management  Systems  and  Services  -  International
Expansion

Another  of  PANAFON's unique qualities is its management
structure and information systems that have proved to  be
invaluable  during this time of rapid  expansion  of  the
subscriber base.

The  enhanced value of these systems has been  recognised
once again by the recent offering of billing services  to
Vodafone-Hungary, Hungary's third mobile operator.

PANAFON   will  continue  to  work  actively  to  sustain
profitable growth and will remain focused on this primary
goal  in  the continuing highly competitive and  evolving
environment.



Contact:    George Stefanopoulos,
            Group Investor Relations Executive, Panafon S.A
            Tel: +301 6160061

            Lulu Bridges,
            Tavistock Communications
            Tel:  +(44) 171 600 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:
     Panavox                   100.0 per cent
     Radio Korassidis Telecom  30.0 per cent
     Unifon                    19.0 per cent

4.    Panafon  was  awarded a licence 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  current  shareholding  structure  is  as
      follows:
      Vodafone AirTouch plc  55 per cent
      France Telecom         20 per cent
      Intracom S.A.          10 per cent
      Free float             15 per cent
      The  sale by France Telecom of 17%, leaving it with 3%,
      will  be  effected by the end of November  1999.   This
      will increase PANAFON's free float to 32%.


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%.
                            
                            
                            
                            
   PANAFON HELLENIC TELECOMMUNICATIONS COMPANY S.A. &
                       SUBSIDIARY
     UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
         AS OF 30 SEPTEMBER 1999 AND 1998 (IAS)


                                             30 September     30 September
                                                     1999             1998
(In thousands of Greek Drachmae)                           
                                                   ------           ------
ASSETS                                                                    
Current Assets                                                            
Cash and cash equivalents                       1,071,896          722,358
Accounts receivable, net                       57,693,406       42,756,230
Inventories                                     2,874,319        3,338,277
Other current assets                            5,053,760        2,119,045
                                                   ------           ------
Total Current Assets                           66,693,381       48,935,910
                                                   ------           ------
Non-Current Assets                                                        
Deferred income taxes                             114,775          434,653
Network infrastructure, net                   125,628,863       99,536,357
Cellular licence, net                          20,420,793       21,987,250
Fixed and other assets, net                    11,985,975        7,541,087
Goodwill                                        3,440,440          729,558
Investments in associates                       5,966,823          286,140
Investments                                     1,200,000                -
                                                   ------           ------
Total Non-Current Assets                      168,757,669      130,515,045
                                                   ------           ------
TOTAL ASSETS                                  235,451,050      179,450,955
                                                  =======          =======
                            
                            
                            
                            
   PANAFON HELLENIC TELECOMMUNICATIONS COMPANY S.A. &
                       SUBSIDIARY
     UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
         AS OF 30 SEPTEMBER 1999 AND 1998 (IAS)


                                             30 September      30 September
                                                     1999              1998
(In thousands of Greek Drachmae)                          
                                                 -------             ------
LIABILITIES & SHAREHOLDERS'                                                
  EQUITY
Current Liabilities                                                        
Accounts payable                              12,771,997         13,900,466
Short-term borrowings from related                                         
  company                                     64,000,000         28,000,000
Short-term borrowings                            610,000            990,000
Related companies                                241,409             38,048
Taxes other than income                        5,251,219          3,722,133
Income taxes payable                          21,118,291         12,755,297
Dividends payable                             16,912,500         21,012,500
Other current liabilities                     19,409,270         10,429,019
                                                  ------             ------
Total Current Liabilities                    140,314,686         90,847,463
                                                  ------             ------
Long-Term Liabilities                                                      
Long-term debt from related                                                
  company, net of current portion                      -         33,500,000
Deferred income taxes                          1,319,187                  -
Provision for retirement benefits                617,936            401,424
                                                  ------             ------
Total Long-term Liabilities                    1,937,123         33,901,424
                                                  ------             ------
Total Liabilities                            142,251,809        124,748,887
                                                  ------             ------
Commitments and Contingencies                          -                  -
                                                                           
Shareholders' Equity                                                       
Share capital                                 25,625,000         25,625,000
Bonus shares authorised but                                                
  not issued                                  25,625,000                  -
Reserves                                       8,800,878          2,606,230
Retained earnings                             33,148,363         26,470,838
                                                  ------             ------
Total Shareholders' Equity                    93,199,241         54,702,068
                                                  ------             ------
TOTAL LIABILITIES &                                                        
  SHAREHOLDERS' EQUITY                       235,451,050        179,450,955
                                                 =======            =======
                            
                            
                            
                            
   PANAFON HELLENIC TELECOMMUNICATIONS COMPANY S.A. &
                       SUBSIDIARY
  UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
  FOR THE SIX MONTH PERIODS ENDED 30 SEPTEMBER 1999 AND
                       1998 (IAS)


                                        30 September 1999     30 September
                                                                      1998
(In thousands of Greek Drachmae                           
except share numbers and per share data)
                                                  ------           ------
Revenues                                     138,335,779      112,530,312
Cost of sales                               (64,383,408)     (57,395,198)
                                                  ------           ------
Gross profit                                  73,952,371       55,135,114
                                                                         
Selling, general and administrative                                      
  expenses                                  (24,713,821)     (16,587,635)
                                                  ------           ------
Operating income                              49,238,550       38,547,479
                                                                         
Interest Income/(Expense)                                                
Interest income                                   34,507           55,322
Interest expense                             (3,875,095)      (3,743,260)
                                                  ------           ------
Net interest expense                           3,840,588        3,687,938
                                                  ------           ------
Equity in earnings of associated                                         
  companies                                       54,860           96,760
                                                                         
Income before income taxes                    45,452,822       34,956,301
                                                  ------           ------
Income tax expense                          (16,261,348)     (14,866,419)
                                                  ------           ------
Net income                                    29,191,474       20,089,882
                                                 =======          =======
                                                                         
Earnings per share (GRD)                           56.96            39.20
                                                 =======          =======
Weighted average common shares                                           
  outstanding (retrospectively                                           
  adjusted for the bonus share issue)        512,500,000      512,500,000
                                                 =======          =======
                            
                            
                            
                            
   PANAFON HELLENIC TELECOMMUNICATIONS COMPANY S.A. &
                       SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
  FOR THE SIX MONTH PERIODS ENDED 30 SEPTEMBER 1999 AND
                       1998 (IAS)
                            

                                            30 September     30 September
                                                    1999             1998
(In thousands of Greek Drachmae)                          
                                                  ------           ------
Net income                                    29,191,474       20,089,882
Adjustments to reconcile to net                                          
  cash provided by operating                                             
   activities:                                11,773,928        7,506,255
                                                                         
Changes in operating assets                                              
  and liabilities:
 Accounts receivables                       (17,452,085)     (14,068,116)
 Amounts due from related                                                
  companies                                    1,704,417           99,770
 Inventories                                     428,322        (874,706)
 Other current assets                        (2,496,482)          720,228
 Accounts payable                              (704,951)        2,173,341
 Amounts due to related companies              (136,443)      (2,389,199)
 Taxes other than income                       2,446,964        1,623,940
 Income taxes payable                          2,771,057      (9,468,379)
 Other current liabilities                     9,994,854        1,147,601
                                                  ------           ------
Total changes in operating assets                                        
  and liabilities                            (3,444,247)     (21,035,520)
                                                                         
Net cash provided by operating                                           
  activities                                  37,521,155        6,560,617
                                                  ------           ------
Cash flows from investing activities:                                    
 Capital expenditures                       (21,937,949)     (22,865,181)
                                                  ------          -------
Net cash utilized in investing                                           
  activities                                (21,937,949)     (22,865,181)
                                                   -----           ------
Cash flows from financing                                                
  activities:
 Proceeds/(repayments) of                                                
  short-term borrowings                     (15,090,000)       16,190,000
                                                  ------           ------
Net cash provided by/(utilized in)                                       
  financing activities                      (15,090,000)       16,190,000
                                                  ------         --------
Net increase/(decrease) in cash and                                      
  cash equivalents                               493,206        (114,564)
Cash and cash equivalents at                                             
  beginning of period                            578,690          836,922
                                                  ------           ------
Cash and cash equivalents at                                             
  end of period                                1,071,896          722,358
                                                 =======          =======

                                                                                                                                                                                                                                                             

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