FOR IMMEDIATE PUBLICATION
Montreal (Canada), London (U.K.), July 12, 2000 - Telesystem International Wireless Inc. (TIW) announces that it has reorganized the corporate structure under which it will carry on a national UMTS business in the United Kingdom. As a result of the reorganization, TIW UMTS UK Ltd., the successful bidder in the UMTS auction and holder of license "A" was acquired by the mobile virtual network (MVN) joint venture previously announced by TIW and Hutchison, Hutchison 3G UK Holdings Limited (3G Holdings). Following the acquisition, the company which will deploy the UMTS network has become a wholly-owned subsidiary of 3G Holdings.
The interim loan facility jointly arranged by Chase Manhattan plc and HSBC to finance the license acquisition cost has been replaced by initial equity commitments and loans provided by Hutchison.
In addition, TIW and Hutchison have respectively disposed of 3.5% and 31.5% of their initial participation in the joint venture. NTT DoCoMo Inc. and KPN Mobile announced that they would respectively acquire a 20% and a 15% participation in 3G Holdings. Under the reorganization, TIW has until November 2000 to acquire at cost, its remaining portion of the issued share capital of 3G Holdings, up to a 6.5% participation.
The reorganization also results in a simpler ownership structure of the assets, provides for a more efficient capital structure and positions 3G Holdings to obtain additional financing, including conventional project financing, required to build and operate the UMTS network.
TIW and Hutchison will continue their previously announced collaboration and the exploration of further strategic opportunities.
About Hutchison Whampoa Limited
Hutchison is a Hong Kong-based conglomerate with origins dating back to the 1800s. With a market capitalisation approximately of US$60 billion, Hutchison is one of the largest companies in Hong Kong. In 1999, its consolidated turnover was US$ 7.1 billion, and earnings after tax and exceptional items were approximately US$ 15.1 billion. With over 80,000 employees worldwide, Hutchison operates five core businesses in 24 countries: ports and related services; telecommunications and e-commerce; property and hotels; retail and manufacturing; and energy and infrastructure. Hutchison's telecommunications businesses and holdings span several continents, and include such diverse products as mobile telephony (voice and data), fixed line services, fibre optics broadband networks, web hosting, ISP and ICP services, paging, trunked mobile radio, VSAT and radio broadcasting.
TIW is a rapidly-growing, global mobile communications operator with over 2.9 million subscribers worldwide. The Company's shares are listed on the Toronto Stock Exchange ("TIW") and NASDAQ ("TIWI").
In the United Kingdom, TIW will participate in the development of a 3G network in association with Hutchison Whampoa Limited. TIW is deploying a pan-European digital specialized mobile radio (ESMR) network through its subsidiary Dolphin Telecom plc. In addition to its Dolphin operations, TIW is the strategic and operating partner of the country's fifth largest cellular group in Brazil. In Central and Eastern Europe, TIW is the cellular market leader in Romania and recently launched services in the Czech Republic following its award of a GSM 1800 license.
Telesystem International Wireless Inc.
Vice President Finance
Telesystem International Wireless Inc.
General Manager, Group Corporate Affairs
Hutchison Whampoa Limited
Director of Communication
Hutchison 3G UK Holdings Limited
(44) 776 843 0948
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