TIW's Subsidiary, Dolphin Telecom, Closes an Offering of Senior Discount Notes

Business Wire, May 18, 1999

MONTREAL--(BUSINESS WIRE)--May 18, 1999--

DOLPHIN - TIW(NASDAQ:TIWI) (ME:TIW.) (TSE:TIW.) (NASDAQ: TIWI) Telesystem International Wireless Inc. (TIW) announces that its subsidiary, Dolphin Telecom plc (Dolphin), has closed an offering of US$295 million of 14 percent Senior Discount Notes due in 2009. The net proceeds to Dolphin were approximately US$144 million and interest payments will begin in 2004. The proceeds will be used to finance the deployment of its enhanced specialized mobile radio (ESMR) network in Europe. The offering was co-lead by Bear, Stearns & Co. Inc., Chase Securities Inc. and CIBC World Markets.

"The market recognizes that Dolphin is in a strong position to deliver a truly unique service using the TETRA standard. The proceeds from these notes and the recently announced private equity offering enable Dolphin to properly capitalize its operations to continue the build-out of its ESMR network in the UK, France and Germany, and provides funds for initial development in Belgium and Portugal," said Yves Marois, President, Europe of TIW and Chairman of Dolphin.

Dolphin, which groups TIW's specialized mobile radio (SMR) and ESMR activities in the United Kingdom, France, Germany, Belgium, Spain and Portugal, is the largest SMR operator in Europe, with approximately 300,000 subscribers and holds licenses covering a population of more than 220 million.

Dolphin is a 77.8 percent owned subsidiary of Telesystem International Wireless Inc. 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."

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.