2009 has been quite a challenging year for GLOBUL with adverse macroeconomic environment as a result of the drastic drop of the exports and direct foreign investments, fierce competition with continuous erosion of the retail prices, consolidation of the retail environment and a market that has approached saturation with penetration of over 140%.

Despite the adverse external environment which has driven the decline in revenues, operating income before depreciation and amortization (OIBDA) and Operating Profit, GLOBUL managed to sustain its service revenues market share despite the fierce competition mainly from the third player in the market, expand its contract customer base to 55% of the total customer base, secure a satisfactory return on equity and investments, significantly increase cash contribution by 19% year-on-year and deliver BGN 98 million more free cash (excluding loans repayments) than prior year.

Total revenues marked a minimal decrease of 2.6% and service revenues dropped by 5.8% mainly due to contained usage from the corporate customers seeking to optimize expenses, residential sector where usage was influenced by lower purchasing power and lower interconnect rates imposed by the Bulgarian Regulation Authorities.

GLOBUL’s OIBDA registered a 4.3% decline compared to 2008, while the OIBDA margin decerased by 0.7pp to 41.8%. Despite the challenging business environment, GLOBUL managed to reduce non revenue related costs by 5% compared to 2008 through consistent cost rationalization initiatives focusing primarily on vendors’ consolidation, network maintenance optimization and cash discounts. Capital Expenditure has been rationalized vs. 2008 resulting in improving significantly cash contribution compared to 2008 by 19%. Net Cash generated during 2009 is significantly higher vs. 2008 as a result of the efficient cash and working capital management.

GLOBUL’s postpaid customer base increased by 1.5% on the year to a total of 2.1 million representing 55% of the operator’s total customer base. GLOBUL’s total customer base at the end of 2009 was 3.9 million.

GLOBUL’s blended AMOU for 2009 reached 119 minutes, up by 6.3% compared to 2008, while GLOBUL’s blended ARPU decreased by 8% in comparison to last year, at BGN 17.60, positively affected by the shift of customer base towards postpaid.

Summary Financial Results for GLOBUL for the 3 & 12 months, ended December 31, 2009 & 2008.

COSMOTE GROUP

In Q4’09, facing further deterioration in the macroeconomic environment in all its markets, heightened regulation and aggressive competition, Cosmote has defended its positions through strong operating performance, maintaining its leadership in Greece and continuing to gain market share in Romania and Bulgaria.

Fierce price competition in prepaid telephony, affecting the Greek market since early 2009, impacted Romania and Albania in Q4’09, leading to a 6.7% slide in total Cosmote Group revenues, excluding Cosmofon and Zapp.

Cosmote Group service revenues dropped 5.9% compared to Q4’08 (excluding Cosmofon & Zapp) to 638.7 million euro. This decline is largely due to lower termination rates imposed by regulators throughout the Group’s presence, while outgoing revenues dropped by only 1.6% in the quarter.

With operating expenses down 5.1%, Group OIBDA registered a 14.4% decline in Q4’09. Excluding Cosmofon and Zapp, Group OIBDA was down 11.6% in the quarter. Despite tight controls on distribution and marketing expenses, as well as lower interconnection costs, OIBDA margindecreased by 230 basis points.

In late October 2009, Cosmote completed the acquisition of Telemobil (Zapp) in Romania, as previously announced. This acquisition enables Cosmote Romania to tap the upside potential of mobile broadband services in Romania and compete on equal terms in the market. Since the beginning of 2010, Cosmote Romania has been offering broadband services to its customer base, with encouraging early indications.

Cosmote’s customer base rose by 13.8% (excluding Cosmofon) compared to Q4’08, while net adds during the quarter reached 567K, bringing the total to approximately 22 million customers. As Cosmote managed to gain the majority of the market’s additions in Greece and Romania during 2009, it has set the basis for further outperformance in the future.

Summary Financial Results for COSMOTE Group for the 3 & 12 months, ended December 31, 2009 & 2008.