1. OVERVIEW
COSMOTE MOBILE TELECOMMUNICATIONS S.A., the leading provider of mobile tele-communication services in Greece, announces consolidated financial results for the six months ended June 30, 2004, posting on-going very strong performance on all fronts. Group operating revenues in H1-04 increased by approximately 21% y-o-y, significantly higher than the respective growth rate of 13% in H1-03. 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 margin stood at 42.6% while group net income grew by 26.4% y-o-y with net income margin at 19.2%. It is noted that the extraordinary growth rates of above 20% evidenced in all P&L lines during the first quarter of 2004, were also sustained in Q2-04, resulting in a very strong H1-04 financial performance.

Total group operating revenues for the period under review increased by 20.6% to reach euro 753.2 million (including approximately euro 6.1 mil accounted for the management of Globul and COSMOFON). The overall revenue increase reflects: * +23.7% in the total 'airtime and monthly service fees' revenues (+19% in airtime revenues, combined with +38.5% in monthly service fees revenues, that include airtime revenue incorporated in the bundled packages) * +20.2% in interconnection revenues that for the first time include euro 5.3 million of SMS interconnection revenues . * +31.9% in revenues from sales of handsets & accessories, following the launch of 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 six months ended June 30, 2004 increased by approximately 36% 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 12.1% of total telecommunication revenues and 12.4% of domestic operations. It is reminded that in June 2004, and within record time since the beginning of the project, the Company launched exclusively in the Greek mobile market, i-mode, the world's most popular mobile Internet service , with the aim to enhance its innovative data offering portfolio and further boost service revenues and their overall contribution in the future. Since launch the customers' response to the service provides very encouraging indications about the positive take up of i-mode in Greece.

Roaming revenues in H1-04 grew by approximately 20%, accounting for 1.8% of total consolidated revenues, at the same levels as one year ago. During the second quarter of the year, the Company signed 21 additional roaming agreements that at the end of H1-04 amounted to 342 in 160 countries (5 more countries compared to the end of Q1-04). In addition, since the launch of i-mode (in June 2004) the Company has signed to date 25 GPRS roaming agreements in 19 countries.

Group EBITDA increased by 21.6%, reaching euro 320.6 mil while EBITDA margin stood at 42.6%. Furthermore Greek operations EBITDA reached euro 289.6 million increasing by 22.9% y-o-y, higher than the respective revenue growth (of 21.2%). As a result domestic EBITDA margin improved to 41.4% from 40.9% in H1-03, underlining the fact that domestic operational results remain the key contributor to the Company's future performance.

Group Earnings amounted to euro 145 mil, up 26.4% y-o-y with consolidated Net Income margin in H1-04 reaching 19.2%, the highest ever recorded to date. Domestic operations earnings grew by 27%, with net income margin at 18.9%. Free cash flow at the end of H1-04 stood at euro -11.4 mil following the dividend payment (for year 2003) of euro 165.1 mil that was paid in Q2-04 compared to last year's payment in Q3-03, and as a result Net Debt for the period amounted to euro 203 mil. Consolidated Capital Expenditures during the period under review amounted to approximately euro 120 mil, leading to a CAPEX/Sales ratio of 15.9%.

3. OPERATING REVIEW: KPIs
3.1 ANALYSIS OF ARPU & AMOU (COSMOTE GREECE) Blended AMOU during H1-04 has increased by approximately 25% (y-o-y) to reach 126 min. This is driven by the continuous quarterly strong growth in contract AMOU that at the end of H1-04 was 65 minutes higher compared to a year ago (34% increase). This strong positive trend, an evolution of the trend that started in 2002 and was continually enhanced on a quarterly basis throughout 2003, once again underlines the fact that voice usage represents the key growth driver in the Greek mobile market.

COSMOTE blended ARPU for the period under review (at euro 30.4) was 8.6% higher compared to a year ago, positively affected by the increase in contract ARPU that at the end of H1-04 was the highest ever recorded, at euro 54.2 (+16.8% y-o-y). The impact of this significant increase has offset the tariff cuts (-25% approximately since the introduction of bundled packages) and the effect from the higher proportion of prepaid customers in the total customer base (60.7% compared to 59% at the end of H1-03).

3.2 SUBSCRIBERS 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 H1-2004 stood at:

H1 2004: Total Prepaid COSMOTE (Greece) 2,473,351 AMC (Albania) 626,033
Total Contract COSMOTE (Greece) 1,602,188 AMC (Albania) 15,025
Total Customer base COSMOTE (Greece) 4,075,539 AMC (Albania) 641,058
Customer base growth (y-o-y) COSMOTE (Greece) 5.7% AMC (Albania) 14.3%

It is once again underlined that the Greek mobile market has reached very high penetration levels. During the second quarter of 2004 COSMOTE added 52,064 net new additions (50,011 new prepaid customers and 2,053 new contracts). Contract customers at the end of H1-04 reached 1,602,188 or 39.3% of total while prepaid customers during the same period amounted 2,473,351 or 60.7% of total. It is also expected that the Company has sustained the majority of the total contract customers market in Greece. COSMOTE's annualized churn rate, for H1-04 was stable at previous levels (Q1-04 ~ 19.5%).

During the same period, AMC added 25,124 net new customers, reaching a total of 641,058 customers. It is also noted that during the second quarter of 2004 Globul added 47,779 net new additions, bringing the total number of customers at the end of H1-04 to 1.2 million, 87.5% higher than a year ago. At the same time, COSMOFON had 43,195 net new additions, compared to 27,205 during the first quarter of the year (58.8% q-o-q), with its total customer base surpassing 154,000 (a 38.7% quarterly increase).

4. ALBANIAN MOBILE COMMUNICATIONS Sh.a
During the six months ended June 30, 2004 AMC contributed approximately 7.4% to the Company's consolidated revenues and 9.7% to COSMOTE group EBITDA. AMC's revenues at the end of H1-04 were 11.3% higher compared to a year ago, reaching euro 55 million (in local currency revenue increase was ~3%). Under current market conditions, the Albanian mobile market is considered to have entered a maturity phase. AMC's EBITDA margin in H1-04 was stable at high levels (over 56%) while Net Income margin stood at 28.8%.