COSMOTE MOBILE TELECOMMUNICATIONS S.A., the leading provider of mobile telecommunication services in Greece, held today an Extraordinary General Shareholders' Meeting during which COSMOTE's participation in 70% of COSMOROM's capital was approved.

More specifically, as part of the agreement between COSMOTE and COSMOROM's owner ROMTELECOM, COSMOTE will contribute ?120 million in cash to COSMOROM's equity capital in exchange for a 70% equity stake in COSMOROM, with ROMTELECOM retaining a 30% stake. Furthermore, all of COSMOROM's liabilities, except for liabilities up to ?18 million, will be capitalized or written-off by the completion date of the transaction. Additionally, ROMTELECOM will hold certain minority protection rights provided by the Shareho lders' Agreement between COSMOTE and ROMTELECOM.

COSMOROM, the 3rd GSM operator in the Romanian mobile market, whose activities have been limited over the last few years, holds a GSM license, which was modified to include the right to use frequencies in both EGSM 900 and GSM 1800 MHz frequency band. In addition, the term of the license was extended to April 2014.

With a solid track record and its accumulated experience in successfully managing mobile operations in Greece, Albania, Bulgaria and F.Y.R.O.M., COSMOTE will relaunch the operations of COSMOROM.

According to the agreement governing the transaction, closing of the transaction has to take place by no later than 16.8.2005. However, after today's approval by the General Shareholders' Meeting, the transaction is expected to be concluded within the first two weeks of July 2005.