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Panafon Hellenic Tel (PFHD)

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Thursday 15 November, 2001

Panafon Hellenic Tel

Interim Results

Panafon Hellenic Telecom Co S.A.
15 November 2001



                                PRESS RELEASE


                               15 November 2001


                 PANAFON-VODAFONE ANNOUNCES PROFITABLE GROWTH AND
                             ARPU STABILISATION


        Revenue growth 13.5%, EBITDA growth 13.7%, EBITDA margin 43.2%


PANAFON HELLENIC TELECOMMUNICATIONS COMPANY S.A. ('Panafon-Vodafone')
announces interim results for the 6 months ended 30 September 2001, prepared
according to International Accounting Standards (IAS). 1

Revenues for the period increased to Euro 494.4 million (GRD 168.5 billion), a
13.5% increase compared to the previous period. Airtime and data revenue
accounted for 81.1% of total revenues.

Data revenues (which include SMS and WAP revenues) increased significantly by
50.6% to Euro 53.5 million (GRD 18.2 billion), representing 11.7% of total
service revenue compared with 8.8% for the same period last year and
reflecting the success of Panafon-Vodafone's wireless data services offering.
SMS now runs at an average of 40 messages per customer per month. Data
contributed Euro 3.5 (GRD 1,206) in ARPU (monthly average revenue per
registered user) compared with Euro 2.8 (GRD 970) for the six months ended 30
September 2000, a 24% increase. Data ARPU represents 11.7% of Gross ARPU.

Gross ARPU for the six month period ended 30 September 2001 was Euro 30.3 (GRD
10,309). The level of ARPU recorded for the past three quarters shows a strong
stabilisation trend. These ARPU levels were achieved despite the recent tariff
reductions for contract customers as well as the increasing proportion of
prepaid customers, who traditionally have lower levels of usage. The success
of Panafon-Vodafone's strategy to attract high quality customers in both the
prepaid and contract segments is shown by AMOU (average minutes of use per
customer per month) trends.

Blended chargeable AMOU during the period ended 30 September 2001 was 78
minutes, showing an upward trend since January 2001. In the quarter
July-September 2001 blended AMOU was 80 minutes with contract average minutes
of use reaching 175 minutes.

EBITDA (earnings before interest, tax, depreciation and amortisation)
increased by 13.7% to Euro 213.3 million (GRD 72.7 billion), compared to the
same period last year.

EBITDA margin reached 43.2% (last year 43.1%), fully absorbing the dilution
from the UNIFON merger and reflecting network productivity and operational
efficiencies.

Income before Taxes increased to Euro 141.9 million (GRD 48.4 billion), up
2.7% compared with the same period last year reflecting higher depreciation
and amortisation costs and start up costs in Albania and Vizzavi Hellas. Net
income decreased by 3.8% due to one off tax provisions.


1  Euro exchange rate: EURO = 340.75 GRD


Net operating cash flow reached a record of Euro 139.4 million (GRD 47.5
billion) demonstrating the company's ability to generate significant positive
cash flows and efficiently utilise its capital employed. The operating cash
flow fully funded total capital expenditure (network and other fixed assets)
of Euro 82.6 million (GRD 28.1 billion) and investments of Euro 26.2 million
as well as covering a significant part of the 3G and the extra 2G  licence
costs.  Short term borrowing increased by  Euro 175.2 million to fund the
above mentioned licence costs. However, the net debt to equity ratio as at 30
September 2001 remained at the very healthy level of 0.65 times.

Subscriber acquisition costs decreased significantly to 6.1% of total revenues
for the period under review compared with 12% in the first half of last year
as a result of lower subsidies.

Panafon-Vodafone's total customer base reached 2,696,120 at the end of
September 2001, a 30.9% increase year on year. The increase in customers was
mainly driven by growth in the prepaid segment. Net additions for the six
month period to September 2001 were 356,100 of which 329,132 were prepaid.
Churn was reduced to 6.9%, a 6.4 percentage points improvement.

Penetration in the Greek cellular market reached 67.9% at the end of the
period. 2

Panafon-Vodafone, in line with Vodafone Group's new disclosure standards, has
introduced the concept of inactive customers. Customers are considered
inactive if they have not made or received a chargeable call in the last 3
months. On this basis, 78.5% of Panafon-Vodafone's total customer base was
active as at 30 September 2001. The company believes that this method of
reporting customer numbers should become standard for the industry.

Applying the inactive customer methodology, the previously recorded ARPU of
Euro 30.3 (GRD 10,309) for the six months ended 30 September 2001 adjusted for
active customers results in an active gross ARPU of Euro 37.2 (GRD 12,675).
Active customer numbers more accurately reflect the levels of mobile adoption
and will be helpful in determining real trends in ARPU.

Panafon-Vodafone's results include for the first time the consolidation of
UNIFON after the recent merger. UNIFON contributed 5.1 percentage points of
growth in revenue and 1.2 percentage points in EBITDA. EBITDA margin dilution
due to the merger was 1.5 percentage points.

Panafon-Vodafone's CEO, Mr. George Koronias, stated: 'The company's profitable
growth during the period under review has been achieved in parallel with the
restructuring of our commercial network, the launch of Vodafone Shops, the
commencement of operations in Albania, our participation in Vizzavi Hellas and
investing in our future by acquiring the broadest spectrum.'


2  Calculated using a Greek population of 10.9 million


                           Summary of Financial Results

                       6 months     6 months     6 months     6 months
                             to           to           to           to       %
                        30-9-01      30-9-01      31-9-00      30-9-00  change
                      Unaudited    Unaudited    Unaudited    Unaudited
                       Euro   m       GRD bn      Euro  m       GRD bn


Revenues                 494.4        168.5        435.7        148.5    13.5%
Gross Profit             280.0         95.4        232.3         79.1    20.5%
Gross Profit
margin                    56.6%        56.6%        53.3%        53.3%
EBITDA                   213.3         72.7        187.7         63.9    13.7%
EBITDA margin             43.2%        43.2%        43.1%        43.1%
Operating Profit
(EBIT)                   153.9         52.4        146.7         50.0     4.9%
Income before
income taxes             141.9         48.4        138.2         47.1     2.7%
Net income                86.4         29.4         89.8         30.6    -3.8%
Weighted average
number of shares   530,521,997  530,521,997  512,500,000  512,500,000
EPS pre Goodwill
(in Euro or GRD)        0.1748        59.58       0.1811        61.70    -3.4%
Earnings per share
nominal (in Euro
or                      0.1628        55.47       0.1752        59.70    -7.1%
GRD)
Customers at 30th
September 2001       2,696,120    2,696,120    2,060,045    2,060,045    30.9%


   PANAFON HELLENIC TELECOMMUNICATIONS COMPANY SA AND SUBSIDIARIES UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE SIX MONTH PERIODS ENDED 30
                            SEPTEMBER 2001 AND 2000
                According to International Accounting Standards


(In millions of Euro)                       30 September 2001 30 September 2000

Revenues                                             494,428           435,673
Cost of sales                                      (214,452)          (203,417)
Gross profit                                         279,976           232,256


Selling, general and administrative                 (126,087)          (85,528)
expenses

Operating Income                                     153,889           146,728

Interest Income/(Expense)
    Interest income                                      344               214
    Interest expense                                  (8,311)           (8,916)
Net Interest Expense                                  (7,967)           (8,702)

Equity in earnings of associated companies            (4,018)              198

Income before income tax expense                     141,904           138,224

Income tax expense                                   (55,538)          (48,432)

Net Income                                            86,366            89,792

Earnings per share  (Eurocents)                        16.28             17.52

Earnings per share  (Eurocents)
pre-goodwill
amortization                                           17.48             18.11

Common shares outstanding                        530,521,997       512,500,000



   PANAFON HELLENIC TELECOMMUNICATIONS COMPANY SA AND SUBSIDIARIES UNAUDITED
                  CONDENSED CONSOLIDATED BALANCE SHEETS AS OF
                      30 SEPTEMBER 2001 AND 31 MARCH 2001
                According to International Accounting Standards


(In millions of Euro)

ASSETS                                     September 30, 2001    March 31, 2001


NON-CURRENT ASSETS


NETWORK INFRASTRUCTURE,NET                            633,288           601,817
LICENSES, NET                                         348,802            61,162
FIXED AND OTHER ASSETS, NET                            81,825            60,176
GOODWILL, NET                                         116,775            29,479
TRADEMARK, NET                                          7,343             7,982
INVESTMENTS IN ASSOCIATES                              27,263            24,274
INVESTMENTS                                             7,756             5,165


TOTAL NON-CURRENT ASSETS                            1,223,052           790,055


CURRENT ASSETS

INVENTORIES                                            12,367             5,032
PREPAID RENTS AND OTHER CURRENT ASSETS                 27,223             9,866
RELATED COMPANIES                                       8,169            10,843
ACCOUNTS RECEIVABLE, NET                              157,339           115,319
MARKETABLE SECURITIES                                   1,155                 0
CASH & CASH EQUIVALENTS                                 3,416             2,241


TOTAL CURRENT ASSETS                                  209,669           143,301


TOTAL ASSETS                                        1,432,721           933,356



              PANAFON HELLENIC TELECOMMUNICATIONS COMPANY SA AND
      SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF
                      30 SEPTEMBER 2001 AND 31 MARCH 2001
                According to International Accounting Standards


 (In millions of Euro)


LIABILITIES & SHAREHOLDERS'               September 30, 2001     March 31, 2001
EQUITY


SHAREHOLDERS' EQUITY

SHARE CAPITAL                                        173,209            150,404
RESERVES                                              45,555             36,662
SHARE PREMIUM                                        130,453                  0
RETAINED EARNINGS                                    303,902            227,543

TOTAL SHAREHOLDERS' EQUITY                           653,119            414,609


COMMITMENTS & CONTINGENCIES

LONG-TERM LIABILITIES
LONG TERM PAYABLE                                     55,261                  0
DEFERRED INCOME TAX                                   13,016              8,409
PROVISION FOR RETIREMENT BENEFITS                      3,672              2,735


TOTAL LONG TERM LIABILITIES                           71,949             11,144

CURRENT LIABILITIES
ACCOUNTS PAYABLE                                      79,417            103,928
SHORT-TERM BORROWINGS FROM RELATED
COMPANY                                              419,516            247,983
SHORT-TERM BORROWINGS                                  7,291              3,610
RELATED COMPANIES                                     13,058              1,338
INCOME TAXES PAYABLE                                  56,261             40,726
TAXES OTHER THAN TAX INCOME                           22,496              5,053
DIVIDENDS PAYABLE                                     61,463             60,560
DEFFERED REVENUE                                      21,092             24,883
OTHER CURRENT LIABILITIES                             27,059             19,522

TOTAL CURRENT LIABILITIES                            707,653            507,603

TOTAL LIABILITIES                                    779,602            518,747

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY                               1,432,721            933,356



   PANAFON HELLENIC TELECOMMUNICATIONS COMPANY SA AND SUBSIDIARIESUNAUDITED
                       CONDENSED CONSOLIDATED STATEMENTS
   OF CASH FLOWS FOR THE SIX MONTH PERIODS ENDED 30 SEPTEMBER 2001 AND 2000
                According to International Accounting Standards


(In millions of Euro)                              Six months to  Six months to
                                                              30             30
                                                  September 2001 September 2000
                                                            
Cash flows from operating activities:
     Income before taxes                                141,903        138,225
     Adjustments to reconcile to net cash
     provided by
     operating activities                                74,272         43,357
     Total changes in operating assets and              (76,767)       (55,510) 
     liabilities


Net cash provided by operating activities               139,408        126,072


Cash flows from investing activities:
     Capital expenditures                               (82,580)      (127,316)
     Investments                                        (26,239)       (23,627)
     Licenses                                          (238,483)             0
     Acquisition of subsidiaries                         20,204              0
     Proceeds from sale of marketable securities         12,301              0
     Proceeds from sale of fixed assets                   1,418              0
     Dividends received                                       0          1,095


Net cash utilised in investing activities              (313,379)      (149,848)


Cash flows from financing activities:
     Proceeds/(repayments) from short-term
     borrowings                                         175,215         23,507
     Dividends paid                                         (69)           (35)


Net cash provided by financing activities               175,146         23,472


Net decrease in cash and cash equivalents                 1,175           (305)
Cash and cash equivalents at beginning of year            2,241          3,064
Cash and cash equivalents at end of year                  3,416          2,759




                           

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