Detail of press release from 25. 3. 2008

Prague, March 25, 2008 - GTS Novera, the nationwide telecommunication operator, ended 2007 with excellent financial results. Compared to 2006 the most important indicator, EBITDA grew by 13 % to more than CZK 1.041 billion. The company achieved a net profit of CZK 16.7 million. Revenues totaled CZK 5.765 billion, i.e. a similar level to 2006.

Today GTS Novera, the telecommunication operator, released its financial results for 2007. These results signal that the transformation of the company through several years of consolidation of the Czech fixed-line market during which GTS Novera, as the principal participant in this process, gradually integrated the following operators: Aliatel, Contactel, Telenor Networks and Nextra, is over. In 2007 GTS Novera affirmed its position on the market and continued to benefit from these acquisitions acquired.

GTS Novera's revenues generated from sales of telecommunication services amounted to CZK 5.765 billion in 2007. This was almost as much as the company reported for 2006. The company's excellent condition is demonstrated by the EBITDA. Compared to 2006 it grew by 13 % to the record CZK 1.041 billion.

The company's investments to fixed assets totaled CZK 562 million in 2007, 4 % higher than in 2006. The investments were primarily to modernize the backbone network, increase the number of access points and develop the local loop.

"As for the operational profit we have crossed the billion boundary. Despite continued price decline we succeeded in generating a comparable amount of revenues," stated Mr. Milan Rusnák, GTS Novera's Director General and Chairman of the Board, and continued: "In the past years we have had to merge several different networks, technologies, management and billing systems, product portfolios, and customer databases. In addition, we had to cope negative financial results from operators acquired. This period is over now. Last year we particularly focused on making our work more effective in all areas. The results we have just published show that we have begun to reap the fruits of our labor."

Besides the above-mentioned factors the best ever financial results of the company were achieved thanks to a stronger focus on the business customers segment, increase in cooperation with state and local authorities, and strengthening position on the Central and East European market where GTS Novera profited from more intensive cooperation within the international group GTS Central European Holding B.V. (GTS CE), of which GTS Novera is the largest member.

On GTS Novera

GTS Novera is a nationwide telecommunication operator providing a comprehensive portfolio of voice, data and Internet service with a quality level guaranteed. The company was established in 2005 upon a merger of two leading alternative telecommunication operators, namely GTS CZECH and Aliatel. In 2006 it succeeded in completing an acquisition of additional three alternative telecommunication operators that had been doing business on the Czech telecommunication market, namely Contactel, Telenor Networks and Nextra. The company is a part of a powerful international telecommunication group GTS Central European Holding B.V., which is a leading provider of telecommunication services within the Central European region. The current headcount is about 500.

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Lucie Řeřichová

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