GERMANOS S.A. is entering the Uzbek market following an agreement to acquire the mobile operator Daewoo Unitel Co. from South Korea's DAEWOO International Corp. The agreement was signed today, Wednesday 15 September 2004, in Seoul. The $73.5 million acquisition price is being funded by an equity consortium expected to consist of GERMANOS S.A., the European Bank of Reconstruction and Development (EBRD), Global Finance (a Greek private equity and venture capital firm that manages the Black Sea Fund, in which the EBRD is an investor) and Mr. Panos Germanos.

Uzbekistan is the third-largest country in the CIS (Commonwealth of Independent States) after Russia and Ukraine, with a population approaching 26 million. Prospects for the country's telecommunication sector are strong given that mobile telephony penetration stands at only 1.4%, whereas fixed telephony penetration is a low 7.5%.

UNITEL CO. is the second-largest mobile operator in Uzbekistan, with a market share above 25%, EBITDA margin (Earnings before Interest, Taxes, Depreciation and Amortization) approaching 57% and with projected revenues of $32 million in 2004. Its network covers major population centers in the country, with its subscriber base anticipated to exceed 110,000 by the end of 2004.

Under the proposed shareholding structure, Mr. Panos Germanos would be the largest shareholder, GERMANOS S.A. would take a 20% stake, while the EBRD's stake would amount to not less than 7%. The EBRD's investment is subject to the approval of its Board of Directors. At the same time, GERMANOS S.A. is ensuring its interests through a five-year put option, giving the Company the option to sell its participation after five years on predetermined valuation terms.

The completion of the acquisition is subject to a series of terms and conditions, including approval of the relevant Uzbek authorities.

According to Mr. John Karayiannis, Chief Executive Officer of GERMANOS S.A.: 'GERMANOS entry in the market of Uzbekistan, where mobile telephony penetration is only 1.4%, constitutes a major investment opportunity. The Company's decision to participate in this acquisition was based on the especially positive prospects of the mobile telephony sector in this country. At the same time, GERMANOS will develop an extended network of stores, offering the full range of UNITEL Co's services, and maximizing its benefits with regard to this partnership.'