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Panafon Hellenic Tel (PFHD)


Wednesday 15 November, 2000

Panafon Hellenic Tel

Panafon Interim Results

Panafon Hellenic Telecom Co S.A.
15 November 2000

                            Interim Results
                Continued growth in revenues and profit

Revenues of GRD 148bn - Euro 445m
EBITDA GRD 64bn -  Euro 192m

Panafon  Hellenic  Telecommunications Company  S.A.  ('Panafon'),  the
leading  provider  of mobile telecommunications in  Greece,  announces
continued profitable growth for the six months ended 30 September 2000
(based on International Accounting Standards (IAS).

Panafon's  total  customer  base  reached  2,060,000  at  the  end  of
September  2000, a 38.4% increase compared with the end  of  September
1999, emphasizing Panafon's position as the leading mobile operator in
Greece. The increase in customers was mainly driven by growth  in  the
prepay segment. Net additions for the six-month period to 30 September
2000 totalled 287,171 out of which 243,311 were prepay.

Panafon's  market  share reached 38.1% and penetration  in  the  Greek
cellular market reached 51.4% of the population at the period end.

Revenues  for  the period increased to GRD 148.5bn,  a  7.3%  increase
compared  with  the  six months to September 1999.  Airtime  and  data
revenue  increased significantly to GRD 119.6bn, a 21%  increase  over
the  previous  first half of 1999, despite sharp tariff reductions  by
26%  for  contract  and  33%  for prepay, due  to  intense  commercial
pressures during the period. Airtime and data revenues now account for
81% of total revenue.

Merchandise sales (handset sales) decreased by 24% (from GRD 11.5bn to
GRD  8.8bn  for  the  period), reflecting increased  sales  of  prepay
through  connection  only  packs rather than  promotion  packs  (which
include a handset).

Monthly  access revenues decreased from GRD 26.1 billion to  GRD  18.0
billion  (a 31% decrease), due to the sharp tariff reductions referred
to earlier in this statement.

Data   revenues  (which  include  SMS  and  WAP  revenues)   increased
significantly to a record GRD 8.9 billion, representing  6%  of  total
revenue compared with 2% (or GRD 2.9 billion) for the same period last
year,  reflecting  the success of Panafon's data services  and  mobile
internet offering.

Internet and leased line revenues almost doubled from GRD 485  million
to GRD 903 million for the six month period.

EBITDA  (earnings before interest, tax, depreciation and amortisation)
increased  by  7.7% to GRD 64bn, compared with the  same  period  last
year.  Income  after taxes increased to GRD 30.6bn, up  4.8%  compared
with same period last year.

EBITDA and net income margins remained at healthy levels of 43.1%  and
20.6%   respectively,   reflecting   productivity   improvements   and
operational efficiencies.

As  anticipated,  the increasing proportion of prepay  customers,  who
traditionally  have  lower  levels of usage,  has  driven   the  gross
average  revenue  per  user ('ARPU') to GRD  12,874  for  the  period,
compared  with GRD 17,362 for the six months ended September 1999  and
GRD  15,313  for the twelve months ended  March 2000. Data contributed
GRD 970 in gross ARPU terms compared with 454 for the six months ended
September 1999 and GRD 608 for the twelve months ended March  2000,  a
114% increase from September 1999 and a 60% increase from March 2000.

Net  operating cash flow reached GRD 43bn, demonstrating the company's
unique  ability  to generate significantly positive cash  flows.  This
operating cash flow fully funds the aggressive capital expenditure  of
GRD  43bn  which  was almost double the amount of capital  expenditure
during  the six months to September 1999 and is expected to reach  GRD
75bn by March 2001.

George Koronias, CEO of Panafon, commented:

'Our  first half financial results demonstrate three things: Panafon's
leadership in the market, significant growth and profitability despite
intense  competition  and the success of our strategy  to  expand  our
business   in   data  and  Internet  services.  Panafon's  significant
investments  in  its  network, cash flow  capacity,  leadership  in  a
growing competitive market as well as the distinct synergies developed
with  our  parent  company,  Vodafone,  are  the  foundations  to  the
continued delivery of shareholder value and profitable growth'.

                Summary Consolidated Financial Results


April-September              1999/00        2000/01        00/01   Increase
                            In GRD m       In GRD m    In Euro m        %
Revenues                     138,336         148,455       444.5     7.3%
Gross Profit                  73,952          79,144       237.0     7.0%
% of Revenues                  53.5%           53.3%                     
EBITDA                        59,400          63,947       191.5     7.7%
% of Revenues                  42.9%           43.1%                     
Income before                                                            
income taxes                  45,453          47,100       141.0     3.6%
% of Revenues                  32.9%           31.7%                     
Income taxes                                                             
                              16,261          16,503        49.4     1.5%
Income after                                                             
income taxes                  29,192          30,597        91.6     4.8%
% of Revenues                  21.1%           20.6%                     
EPS  (in GRD/Euro)             56.96           59.70       0.179     4.8%
Weighted average                                                         
common shares                                      
outstanding              512,500,000    512,500,000


*   Recently  Panafon  announced its intention to merge  with  Panafon
  Emporiki  S.A  and  Unifon  S.A. under a  corporate  scheme  whereby
  Panafon  will acquire the whole of the issued share capital of  both
  Panafon  Emporiki  and  Unifon that it does not  already  own.  This
  merger  will  give Panafon direct control of more than  66%  of  its
  customer  base,  an  exclusive  extensive  nation-wide  distribution
  network  of retail outlets, and significant synergies and  economies
  of  scale. Finally, the merger will further add to Panafon's  strong
  cash  flow  structure and generate shareholder value. The merger  is
  subject to approval from the shareholders' general assembly as  well
  as clearance from legal and regulatory authorities.

*   Also  Panafon recently introduced a new innovative prepay  product
  targeted  at  the young generation, branded CU. This  is  the  first
  product in the market that directly links GSM and Internet.

*   During  this period, Panafon was the first mobile operator  to  be
  positioned  in fixed and mobile Internet with its ISP Panafonet  and
  its  portal  offering  Internet connectivity,  content,  WAP
  services  (GoWap),  personalized internet  pages  (MyPan)  and  many
  other  value  added  services  such as  and  Pan.auctions
  aiming  to exploit the full range of opportunities arising from  the
  Internet mobile convergence.

*  In line with its strategy to provide corporate customers with value
  added  services  and products, Panafon has introduced  MVPN,  a  new
  integrated    system   for   the   management   of    a    company's
  telecommunications needs.

*   Panafon  has also announced its participation with a 30% stake  in
  'Business  Exchanges', a new B2B company, to be established  in  co-
  operation with EFG EUROBANK ERGASIAS S.A., one of the leading  Greek
  Banks  and  HELLAS ON LINE, a major Greek Internet Service Provider.
  The  new company aims to offer a wide range of products and services
  in  the  field of e-commerce and become Greece's largest B2B service

*   During  this  period, Panafon and its subsidiary Panafon  Services
  undertook  the project of delivering the Customer Service Center  to
  Safaricom,  one  of  the  biggest mobile GSM  network  operators  in
  Kenya.  This  project reflects Panafon's ability to provide  foreign
  operators  and  is  in  line with Panafon's international  expansion

*   Panafon Services, (Panafon's 100% subsidiary) today announces  the
  strategic  partnership  of  its  subsidiary  Panafon  Services  with
  Portal   Software  Inc.,  the  leading  US  provider   of   customer
  management  and  billing software for Internet and  emerging,  next-
  generation  services.  This  partnership  is  strengthening  Panafon
  Services' position as an ASP (Applications Service Provider).

*   Panafon  also  announces today the strategic  partnership  of  its
  subsidiary  Panafon Services with Hewlett Packard. HP  will  promote
  Panafon Services solutions to its world-wide customer base. The  two
  companies   will  join  forces  in  developing  and  marketing   ASP
  (Application  Service  Provision), BRS (business  recovery  service)
  and  Data  Center Services (computer systems operations  outsourcing
  services).  This  collaboration is currently  focused  primarily  on
  Telecom  companies  in Eastern Europe, Middle East  &  Africa.   The
  agreement will become worldwide in due course.

George Stefanopoulos
Panafon Group Investor Relations Executive, Tel: +301 6160406,
[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  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
Indices: FTSE/ASE 20, FTASE, 3.267%. Bloomberg Europe, BE500, .140%.
BBG Eur Telecom, BETELES, 1.190%. BBG Europ Techn, BETECH, 1.237%.

            AS OF 30 SEPTEMBER 2000 AND 31 MARCH 2000 (IAS)

                                        30 September           31 March
                                                2000               2000
(In thousands of                                                       
Greek Drachma)
Non-Current Assets                                                     
Network infrastructure, net              176,689,505        146,725,405
Cellular license, net                     18,854,336         19,637,564
Fixed and other assets, net               17,901,645         16,406,547
Trademark                                  2,937,363          3,154,945
Goodwill                                  10,535,000          4,484,550
Investments in associates                  8,311,301          7,693,047
Investments                                1,251,000          1,200,000
Deferred income taxes                        232,874            967,397
                                            --------           --------
Total Non-Current Assets                 236,713,024        200,269,455
                                            --------           --------
Current Assets                                                         
Inventories                                2,055,010          3,065,524
Prepaid rent and other                                                 
current assets                             5,315,013          4,986,664
Accounts receivable, net                  56,379,381         42,093,137
Related companies                                  -            331,766
Cash and cash equivalents                    940,141          1,044,013
                                            --------           --------
Total Current Assets                      64,689,545         51,521,104
                                            --------           --------
TOTAL ASSETS                             301,402,569        251,790,559
                                            ========           ========

               30 SEPTEMBER 2000 AND 31 MARCH 2000 (IAS)

                                        30 September        31 March
                                                2000            2000
(In thousands of Greek Drachma)                                     
LIABILITIES & SHAREHOLDERS'                                         
Shareholders' Equity                                                
Share capital                             51,250,000      51,250,000
Reserves                                  12,492,592      12,492,592
Retained earnings                         68,894,251      38,297,581
                                            --------        --------
Total Shareholders' Equity               132,636,843     102,040,173
                                            --------        --------
Commitments and Contingencies                      -               -
Long-Term Liabilities                                               
Deferred income taxes                        136,552               -
Provision for retirement benefits            787,014         697,584
                                            --------        --------
Total long-term liabilities                  923,566         697,584
                                            --------        --------
Current Liabilities                                                 
Accounts payable                          30,068,181      28,987,046
Short-term borrowings                                               
from related company                      70,000,000      63,900,000
Short-term borrowings                      1,910,000                
Related companies                            344,801               -
Taxes other than income                    4,308,841       1,972,284
Income taxes payable                      20,806,042      20,422,271
Dividends payable                         19,001,828      19,013,892
Deferred revenue                          11,046,339       8,125,289
Other current liabilities                 10,356,128       6,632,020
                                            --------        --------
Total Current Liabilities                167,842,160     149,052,802
                                            --------        --------
Total Liabilities                        168,765,726     149,750,386
                                            --------        --------
TOTAL LIABILITIES  &                                                
   SHAREHOLDERS' EQUITY                  301,402,569     251,790,559
                                            ========        ========

                                            30 September 30 September
                                                    2000         1999
(In thousands of Greek Drachma                                         
except share numbers
and per share data)
Revenues                                    148,455,489     138,335,779
Cost of sales                              (69,314,257)    (64,383,408)
                                               --------        --------
Gross profit                                 79,141,232      73,952,371
Selling, general and                                                   
administrative expenses                    (29,143,673)    (24,713,821)
                                               --------        --------
Operating income                             49,997,559      49,238,550
Interest Income/(Expense)                                              
Interest income                                  72,912          34,507
Interest expense                            (3,037,742)     (3,875,095)
                                              --------         --------
Net interest expense                         2,964,830        3,840,588
                                              --------         --------
Equity in earnings of associated                                       
companies                                      67,308            54,860       
Income before income taxes                 47,100,037        45,452,822
                                             --------          --------
Income tax expense                        (16,503,367)     (16,261,348)
                                             --------          --------
Net income                                 30,596,670        29,191,474
                                               ========        ========
Earnings per share (GRD)                          59.70           56.96
                                               ========        ========
Weighted average common shares                                         
outstanding (retrospectively                                           
adjusted for the bonus share issue)         512,500,000     512,500,000
                                               ========        ========

                                            30 September    30 September
                                                    2000            1999
(In thousands of Greek Drachma)                                         
Net income                                    30,596,670      29,191,474
Adjustments to reconcile                                                
   to net cash provided by                                              
   operating activities:                      15,644,926      11,773,928
Changes in operating assets                                              
and liabilities:
  Accounts receivables                      (14,888,048)    (17,452,085)
  Amounts due from related companies             331,766       1,704,417
  Inventories                                    810,514         428,322
  Other current assets                         (328,349)     (2,496,482)
  Accounts payable                             1,081,135       (704,951)
  Amounts due to related companies               344,801       (136,443)
  Taxes other than income                      2,336,557       2,446,964
  Income taxes payable                           383,771       2,771,057
   Dividends paid                               (12,064)               -
   Deferred revenue                            2,921,050               -
  Other current liabilities                    3,724,108       9,994,954
                                                --------        --------
Total changes in operating assets                                       
and liabilities                              (3,294,759)     (3,444,247)
Net cash provided by operating                                          
activities                                    42,946,837      37,521,155
                                                --------        --------
Cash flows from investing activities:                                   
   Purchase of investments                   (8,051,000)               -
   Dividends received                            373,062               -
  Capital expenditures                      (43,382,771)    (21,937,949)
                                                --------        --------
Net cash utilized in investing                                          
activities                                  (51,060,709)    (21,937,949)
                                                --------        --------
Cash flows from financing activities:                                   
  Proceeds/(repayments) of short-term                                   
borrowings                                     8,010,000    (15,090,000)
                                                --------        --------
Net cash provided by/(utilized in)                                      
financing activities                           8,010,000    (15,090,000)
                                                --------        --------
Net increase/(decrease) in cash                                        
and cash equivalents                           (103,872)        493,206
Cash and cash equivalents at                                            
beginning of period                            1,044,013         578,690
                                                --------       --------
Cash and cash equivalents                                               
at end of period                                 940,141       1,071,896
                                                ========        ========


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