COSMOTE MOBILE TELECOMMUNICATIONS S.A., the leading provider of mobile tele-communication services in Greece, announces its consolidated financial results for the three months ended March 31, 2003, prepared in accordance with US Generally Accepted Accounting Principles (US GAAP, un-audited). Group operating revenues for the period under review amounted to euro 297.1 mil, 12.8% higher compared to the revenues of the 2002 first quarter, offsetting to a large degree the significant tariff cuts effected within the recently introduced new tariff packages, as evidenced by the 14.4% increase of revenues in the Greek operations.Despite intense competition in both markets that the Company operates, the 80% y-o-y increase of M2M termination charges in Greece and the official introduction of M2M termination charges in Albania, COSMOTE's group profitability was sustained at high levels. Specifically EBITDA reached euro 127.0 mil, posting an EBITDA margin of 42.8%, compared to 43.3% a year ago. Group Earnings amounted to euro 53.7 mil (+ 9.6% y-o-y), with net income margin almost stable at 18.1%. As a result, earnings per share increased also by 9.6% and EPS stood at euro 0.163 up from euro 0.148 a year ago. It is also noted that group cash at the end of Q1-03 reached euro 94.2 mil (free cash flow: euro 78 mil), compared to euro 16.1 mil at the end of year 2002 and euro 52.3 mil one year ago. At the same time Net Debt decreased to euro 283.4 mil from euro 361.3 mil as at December 31, 2002.Overall, COSMOTE's group performance as portrayed in its first quarter 2003 financial results, reflects the continuous strong performance of its domestic operations mainly attributed to increasing usage (driven by increased traffic volumes). Most importantly, the first quarter 2003 financial performance demonstrates the Company's ability to adapt to the continually changing telecommunications environment in which it operates, as evidenced by its sustained double digit growth rates, enhanced profitability, and very strong cash flow generation. Total operating revenues for the three months ended March 31, 2003 increased by 12.8% to reach euro 297.1 mil. A change in OTE's accounting policy regarding Fixed to Mobile calls (terminating in all mobile operators) has been effected from the beginning of 2003. As a result in Q1-03, COSMOTE, recognizes net revenue instead of gross revenues, that it recognized up to now. Excluding this change, y-o-y Group operating revenue growth in Q1-03 would have been 15%. The overall revenue increase mainly reflects a 14.9% increase in airtime revenues, an 11.6% increase in interconnection revenues and a 21.9% increase in SMS revenues. Furthermore, revenues from telecommunications services increased by 13.3% during the period under review, representing almost 98% of total revenues compared to 97.4% a year ago. It is also reminded that the first quarter of the year is traditionally the ?weakest?, in the Greek mobile sector. More importantly COSMOTE's (domestic operations: GREECE) revenues grew by 14.4%, absorbing to a great extent the large tariff cut (on average -25%) effected late last year with the introduction of the bundled packages, as portrayed by the 20.6% increase in local airtime revenues. In addition data revenues (which include SMS, WAP and other ?soft data? revenues from Value Added Services) represent approximately 13.6% of total consolidated revenues. Roaming revenues have been decreased by 26% y-o-y as a result of two important developments: the dollar vs. euro depreciation (that is used in the settlement of roaming revenues) and low tourism on a global scale. Roaming revenues in Q1-03 were euro 2.6 mil, accounting for 0.88% of total revenues, compared to approximately 1.4% in Q1-02. Up to the end of March 2003 the Company has signed 277 roaming agreements in 129 countries. As previously mentioned consolidated profitability was sustained at high levels, with EBITDA reaching euro 127.0 mil, and EBITDA margin 42.8%, compared to 43.3% at the end of March 2002. This is mainly attributed to lower SACs/SRCs as a percentage of revenues (down to approximately 16% from 18.6% a year ago). In addition, domestic operations EBITDA reached euro 112.5 mil, posting a 17.4% y-o-y growth, with an EBITDA margin of 41.1%, higher than the 40% margin of one year ago, despite the 80% increase in the M2M termination costs. Group Earnings amounted to euro 53.7 mil (+ 9.6% y-o-y), with net income margin almost stable at 18.1%. Earnings per share increased by 9.6% and as a result EPS for the period under review stood at euro 0.163 up from euro 0.148 a year ago. Also, net income recorded in the domestic operations grew by 16.6%, to reach close to euro 49 mil, with a net income margin of 17.9%, higher than the 17.6% posted during Q1-02 results. The Company has one of the strongest balance sheets in the sector on a pan-European level. Cash flow generation is extraordinary, reaching euro 94.2 mil, at the end of Q1-03 compared to euro 16.1 mil at the end of year 2002 and euro 52.3 mil one year ago. At the same time Net Debt decreased to ? 283.4 mil from euro 361.3 mil as at December 31, 2002, as a result of the enhanced cash mentioned above. At the same time capital expenditures during the period have notably decreased to reach approximately euro 26.1 mil, from euro 52 mil in Q1-02, reflecting the maturity of the Company's network. Finally it is reminded that the Board of Directors' proposed dividend (to be approved in the AGM held on the 3rd June) is 35 eurocents (yield 3.8%). Ex-dividend date is on the 4th June. Blended AMOU during Q1-03 has reached 96 min, compared to 86 min during the same period last year. This is attributed to the continuous quarterly strong growth in contract AMOU that has resulted in a 34 minutes increase on a yearly basis (~ 23% higher). This positive trend is a continuation of the trend seen in the FY2002 results and reflects the fact that voice Usage represents the key growth driver in the Greek mobile market. COSMOTE blended ARPU for the period under review was almost stable compared to a year ago (at euro 27.5) despite the significant tariff cuts and the dilution effect from the higher proportion of prepaid customers in the total customer base (~57% compared to ~51% at the end of Q1-02). The key driver behind ARPU evolution is the increase in contract ARPU, that at end of Q1-03 was euro 44.3 (+ 7.5% y-o-y). This is mainly attributed to the aforementioned continuous growth in usage that to a large extent has offset the recent tariff rebalancing and the lower fixed to mobile interconnection charges. The blended average monthly number of SMS per customer stood at 39, compared to 41 SMS during the same period last year (Q1-02), partly diluted by MMS. The Company has (since launch) recorded approximately 80,000 MMS users that send on average around 10,000 MMS per day. COSMOTE has been consolidating its majority owned subsidiary in Albania since year 2000. During the three months ended March 31, 2002 AMC contributed approximately 8.3% to the Company's consolidated revenues and 11.5% to COSMOTE group EBITDA. AMC's revenues during the first quarter of 2003 amounted to euro 24.7 mil compared to euro 25.9 mil a year ago. It is noted that Q1-2002 AMC revenues have been restated to exclude approximately euro 2.4 mil of mobile interconnection revenues that had been provided for in last year's revenues (reported in Q1-02), but not received by the end of year 2002. In addition we note that the company's operational growth, as reflected in the local currency revenues, was approximately 8.2% y-o-y. This is attributed to growth in AMC's customer base that at the end of March 2003 reached 537,783 (+ 78%), to a large extent offset by two tariff cuts effected during year 2002. Nevertheless, mobile telephony penetration in Albania, at the end of March 2003, estimated around 30.0%, is the highest recorded among all South Eastern European countries,reaching maturity levels, and not expected to grow significantly any further in the future. An additional factor that has impacted revenues is the fact that the increase of fixed to mobile termination rates to euro 1/min (set by the incumbent operator in Albania), had a negative effect on the respective F2M traffic (-24% y-o-y). Consequently the contribution of F2M revenue in AMC's total revenues fell to 13% from 31% a year ago. AMC's EBITDA during the first quarter of 2003 reached approximately euro 14.6 mil, resulting in a 59.0% EBITDA margin, one the highest in Europe. EBITDA was mainly impacted by the two aforementioned tariff cuts and the newly introduced M2M termination rates that started being charged officially from Q1-03 onwards. Finally net Income margin in the first quarter of 2003 remained almost stable compared to 2002 year-end levels, at 28.3%. It is noted that AMC is expected to distribute 40% of the reported 2002 net income as dividend for the fiscal year 2002. COSMOTE's CEO, Evangelos Martigopoulos, commented: ?Our first quarter 2003 financial results prove the Company's ability to consistently post strong profitability and generate enhanced cash flows. Despite a highly competitive environment, coupled with ongoing regulatory changes and challenging economic conditions, our first quarter financial performance shows that COSMOTE once again delivered on its targets. Our solid 42.8% EBITDA margin confirms that our focus on competitive services combined with our cus tomer oriented strategy continues to pay off. We remain dedicated to our initial goal of sustaining all our key financial ratios well above the respective European averages".