GTS Czech to acquire Aliatel

Prague, December 22, 2004
GTS Central Europe (GTS CE) announces today that GTS Czech has entered into an agreement to acquire Aliatel Czech including its wholly owned subsidiary, Aliatel Slovakia. The transaction requires the approval of the Czech and Slovak Anti-Monopoly Authorities and is expected to close in early in 2005.

The merger of Aliatel with GTS will dramatically strengthen GTS CE's position both the Czech and the Central Europe Markets. Aliatel reported consolidated 2003 full year revenues of approximately Euro80m. Including Aliatel the enlarged GTSCE business expects annual revenues in excess of Euro220m.

"This acquisition is an important step in the development of both GTS Czech and GTS CE. Aliatel brings to GTS some of the leading professionals in the telecoms sector, a blue chip customer base and improved product offering. These improved competitive advantages will allow us to better serve our local, regional and international customers", said Milan Rusnak, Managing Director GTS Czech.

About GTS

GTS Central Europe is a leading provider of integrated telecommunications services in Central and Eastern Europe. GTS owns and operates an extensive fiber optic and data center network throughout the region. In the Czech Republic, Hungary, Poland, Romania and Slovakia, the company combines its regional footprint with deep local networks to deliver a broad range of services. From basic voice and data to complex virtual private networks and managed data center services, GTS assembles the latest technology with its extensive network to provide industry-leading customer solutions. Wit a rich operating history of nearly 20 years in CEE, the company is committed to providing service excellence and value to its 30,000 government, carrier and business customers. GTS is owned by a consortium of leading international private equity firms with extensive experience in the communications and technology industries. For more information, please visit us at www.gtsce.com.