COSMOTE MOBILE TELECOMMUNICATIONS S.A., the leading provider of mobile tele-communication services in Greece, announces consolidated financial results for the nine months ended September 30, 2004, sustaining an outstanding performance on all fronts with high profitability levels.

Group operating revenues for the period under review increased by approximately 21% y-o-y, significantly higher than the respective growth rate of 12% in the 9 months of 2003. This is mainly driven by continuous, very strong growth in usage (Greek operations), combined with positive performance in the Albanian operations. COSMOTE's group EBITDA grew by 21% y-o-y with EBITDA margin at 42.8%. Group net income increased by 24.8% y-o-y with net income margin reaching 19.4%, the highest ever recorded.

Total group operating revenues for the period under review increased by 20.6% to reach euro 1,202.3 million (including approximately euro 9.2 mil accounted for the management of Globul and COSMOFON). The overall revenue increase reflects:
- +23.5% in the total 'airtime and monthly service fees' revenues (+18.5% in airtime revenues, combined with +39.6% in monthly service fees revenues, that include airtime revenue incorporated in the bundled packages)
- +20.3% in interconnection revenues that for the first time include euro 10.8 million of SMS interconnection revenues .
- +61.6% in revenues from sales of handsets & accessories, following the launch of the i-mode® service in the beginning of June and the introduction of new handsets, exclusively by COSMOTE.

The key driver behind the healthy revenue growth is the considerable increase in COSMOTE's (domestic operations: GREECE) traffic volumes that during the nine months ended September 30, 2004 increased by approximately 32% y-o-y, due to strong positive elasticity (that offsets any impact from previous years' tariff cuts and the introduction of the bundled packages).

Data revenues (which include SMS, MMS, and other 'soft data' revenues from Value Added Services) represent approximately 11.5% of total telecommunication revenues and 11.7% of domestic operations.

Roaming revenues in 9m-04 stood at euro 36.4 mil (-1.4% y-o-y) slightly lower compared to the respective period of 2003 due to the significant drop in tourist arrivals during the summer months, the highest recorded decrease in the last 3 years.

During the third quarter of the year, the Company signed 4 additional roaming agreements that at the end of 9m-04 amounted to 346 in 164 countries (4 more countries compared to the end of H1-04) . In addition, since the launch of i-mode (in June 2004) the Company has signed 27 GPRS roaming agreements in 20 countries.

Group EBITDA increased by 21%, reaching euro 514.7 mil while EBITDA margin stood at 42.8%. It is worth noting that despite one-off operating expenses incurred in the third quarter of 2004 that were due to the Olympic Games held in August and the heavy promotion of i-mode following its launch in June, Greek operations EBITDA reached euro 464.4 mil increasing by 22 % y-o-y, and more importantly domestic EBITDA margin improved to 41.6% from 41.3% in 9m-03. Excluding the above-mentioned non-recurring expenses, Group EBITDA margin would have stood approximately 2 p.p. higher.

Group Earnings amounted to euro 233.7 mil, up 24.8% y-o-y with consolidated Net Income margin in 9m-04 reaching 19.4%, the highest ever recorded to date. Domestic operations earnings grew by 25.3%, with net income margin at 19.2%.

Consolidated Capital Expenditures during the period under review amounted to euro 173 mil, leading to a CAPEX/Sales ratio of 14.4%. Capex includes euro 164.6 mil of 2G, 2.5G, Olympic Games and 3G Capex (Greek operations), and euro 8.4 mil invested in AMC (Albania).

Free cash flow at the end of 9m-04 stood at euro 33.6 mil including the dividend payment (for year 2003) of ? 165.4 mil, resulting in Net Debt for the period of euro 158.1 mil compared to euro 203.1 mil in H1-04.

During August 2004, Greece hosted the Olympic Games with unprecedented success. COSMOTE, Grand National Sponsor of the ATHENS 2004 Olympic Games, contributed by covering all mobile telecommunication services needs during the event with absolute success. Non-recurring revenues directly related to the Olympic Games during the nine months of 2004 amounted to approximately ? 25 mil, affected by lower than expected influx of Olympic visitors. The one-off Olympic-related operating expenses, which included mostly, network operating expenses, marketing and payroll, amounted to approximately euro 29 mil. Olympic Games related Capex incurred in 2004 was euro 33 mil with an estimated reusability of 92%.

Blended AMOU during 9m-04 has increased by 21.3% (y-o-y) to reach 131 min. This is driven by the continuous quarterly strong growth in contract AMOU that at the end of 9m-04 was 63 minutes higher compared to a year ago (30.7% increase). This strong positive trend evident on a quarterly basis throughout 2003 and 2004, underlines the fact that voice usage still represents the key growth driver in the Greek mobile market.

COSMOTE blended ARPU for the period under review (at euro 32.1) was 10.3% higher compared to a year ago. Contract ARPU at the end of 9m-04 was the highest ever recorded, at euro 56.9 (+16.4% y-o-y) as a result of the successful take up of the bundled packages and positive usage elasticity.

COSMOTE operates in 4 countries of the Southeastern European region: through direct ownership in Greece & in Albania and, since January 2003, through management contracts, in Bulgaria and FYROM (Macedonia). The customer base of its consolidated companies at the end of 9m-2004 stood at:

During the third quarter of 2004 Globul added 155,646 net new additions, bringing the total number of customers at the end of 9m-04 to 1.44 million, 79% higher than a year ago. At the same time, COSMOFON had 45,557 net new additions, with its total customer base surpassing 200,000 (a 290.6% yearly increase).