TIW's Subsidiary, Dolphin Telecom, Expands its Operations in Germany

Business Wire, March 3, 1999

MONTREAL--(BUSINESS WIRE)--March 3, 1999--(NASDAQ:TIWI) (ME:TIW) (TSE:TIW) Telesystem International Wireless Inc. (TIW) announces that its wholly-owned subsidiary, Dolphin Telecom plc (Dolphin), has acquired 100 percent of Chekker ProRegio Bundelfunk GmbH & Co. Deutschland KG (Chekker), the Specialized Mobile Radio (SMR) subsidiary of Deutsche Telekom, and 100 percent of Quickfunk GmbH (Quickfunk), a regional SMR operator previously owned by Mannesmann and Motorola.

In a separate transaction, Dolphin increased its ownership interest in RegioKom Verwaltungsgesellschaft mbH (RegioKom), its German subsidiary, to 100 percent. The total consideration for these transactions is approximately US$100 million paid in cash and in shares of Dolphin representing a 3.7 percent participation in Dolphin Telecom plc.

Consistent with Dolphin's pan-European branding strategy, RegioKom will change its name to Dolphin Telecom (Deutschland) GmbH. Dolphin has also appointed Mr. Jens Denecke as Managing Director of Dolphin Telecom (Deutschland) GmbH. Mr. Denecke was previously Chief Operating Officer for Networks at o.tel.o Communications GmbH and brings to Dolphin over 10 years of experience in the German telecommunications industry.

With approximately 90,000 subscribers, Chekker operates the largest national SMR network in Germany (total population 82 million) with coverage in all major urban areas. Quickfunk is a multi-regional SMR operator which has approximately 8,000 subscribers. For 1998, Chekker and Quickfunk had combined sales estimated at US$30 million.

"With these transactions, Dolphin strengthens its position as the leading SMR operator in Europe with approximately 300,000 subscribers, and the only European wireless operator with controlling multi-market presence" said Yves Marois, President Europe of TIW and Chairman of Dolphin. "We are also very pleased that Mr. Denecke has joined our team. Mr. Denecke's strong background in mobile communications and his knowledge of the German telecoms market is an asset for Dolphin in attracting new talent and leading the digital roll-out," added Marois.

Dolphin is currently building a digital pan-European wireless communications network based on the TETRA standard developed by the European Telecommunications Standards Institute (ETSI) for enhanced SMR (ESMR). "Not only do these transactions increase our revenues base to over US$100 million and improve significantly our analog operating cash flow" commented Ted Beddoes, Chief Executive Officer of Dolphin, "but they position Dolphin as the only national SMR operator in Germany with approximately 160,000 subscribers. This also facilitates spectrum consolidation in Germany, allowing an easier and more efficient TETRA network roll-out. These subscribers represent a significant base to migrate to our TETRA services which we are expecting to launch in the United Kingdom and France this year and in Germany next year," added Beddoes.

"With over 230 million licensed POPs, representing over 60 percent of the European Union population and two-thirds of its economy, as well as full operating control in all its markets, Dolphin's pan-European strategy is now well underway" concluded Marois.

Dolphin, which groups TIW's SMR and ESMR activities in the United Kingdom, France, Germany, Belgium, Spain and Portugal, is the largest SMR operator in Europe.

TIW is a global wireless operator. It develops, acquires, owns and operates wireless telecommunications networks in developing and developed markets throughout the world. In addition to SMR services provided by Dolphin in Europe, TIW provides digital cellular services in Romania, Brazil, India and China as well as paging services in Mexico and the Netherlands. TIW is listed on the Montreal Exchange and the Toronto Stock Exchange under the symbol "TIW" and on the Nasdaq Stock Market under the symbol "TIWI".