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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: EPS who wrote (1634)	4/14/1998 1:07:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Telesystem Intl (TSE:TIW) announcement/Brazil deal Reuters, Tuesday, April 14, 1998 at 09:40 (Full text of press release from Canadian Corporate News) APRIL 14, 1998 TIW Wins Second Brazilian Cellular Licence - New Licence Area Has Approximately 10 Million People MONTREAL, QUEBEC--Telesystem International Wireless Inc. (TIW) is pleased to announce that its Brazilian consortium Telet S.A. has won an "A-Class" licence to provide cellular services in the State of Rio Grande do Sul in Brazil. The announcement was made today by the Government of Brazil and positions TIW as a significant cellular operator in the Brazilian market. It is the second licence in Brazil for TIW. TIW's two consortia have been among the most successful applicants in the cellular auction, with only two other consortia receiving as many licences. TIW's other Brazilian consortium, Americel, became Brazil's first private-sector B-Band cellular operator last November when it launched commercial service in the Centre-West region. Known as Region 6 in the cellular license auction, Rio Grande do Sul is the southernmost state of Brazil and among the most attractive regions in the country, with a strong and growing economy. It has a population of approximately 10 million people. The Telet bid was 334.5million reais (about US$290 million) or approximately US$30 per POP. Under the tender rules, the bid must be increased by approximately 18 percent or 60 million reais (about US$53 million) to account for interest and inflation since April 7, 1997 the original bid submission date. "Brazil offers staggering growth potential for cellular services and we are extremely pleased to have acquired a second license especially at such an attractive price" said Bruno Ducharme, President and Chief Executive Officer of TIW. "We have secured a strong foothold in one of the world's most coveted cellular market, bidding an average of US$28 per POP for our two licences, well below the overall auction average of approximately US$53 per POP. The success we have achieved so far in penetrating the market at a low entry cost points to a strong value creation potential from our Brazilian cellular ventures" added Mr. Ducharme. "We are particularly pleased to have won Region 6" said Gerard M. Vazquez, Vice President and Executive Director of TIW for Latin America and President and CEO of Telet S.A. Rio Grande do Sul has a strong economy with a broad industrial and agricultural base, and a large number of prosperous, well-developed cities with excellent market potential", added Mr. Vazquez. The members (voting interest) of the Telet S.A. consortium are TIW (20 percent) and BCI (20 percent) as operators, Citibank (9 percent), and a group of eleven large Brazilian pension funds and financial institutions (51 percent). TELET expects to complete the licensing contract with the Brazilian Government within 5 days. Telet's sister consortium, Americel, launched commercial service in the Centre-West region last November, less than five months after obtaining its license, and has currently over 45,000 subscribers. The Centre-West region is the top ranked "B" class territory with a population of approximately 14 million residents and includes the capital city Brasilia as well as six surrounding states. The Americel bid was approximately US$23 per POP. The members (voting interest) of the Americel consortium are TIW (20 percent) and BCI (20 percent) as operators, Citibank (9 percent), and a group of ten large Brazilian pension funds and financial institutions (51 percent). TIW is a global wireless operator. It develops, owns and operates a geographically and technologically diversified portfolio of wireless telecommunications networks in several countries in Europe, Asia and Latin America. TIW provides digital cellular services in Romania, Brazil, India and China. The Company also provides specialized mobile radio (SMR) services in France, Germany, Spain and the United Kingdom, as well as paging services in Mexico and The Netherlands. TIW is listed on The Montreal Exchange and The Toronto Stock Exchange under the symbol "TIW". FOR FURTHER INFORMATION PLEASE CONTACT: Telesystem International Wireless Inc. MARK BOUTET Director, Communications (514) 673-8406 mboutettiw.ca or Telesystem International Wireless Inc. PIERRE FITZGIBBON Executive Vice-President and Chief Financial Officer (514) 673-8466 pfitzgibbontiw.ca

To: EPS who wrote (1634)	4/14/1998 1:09:00 PM
From: Steve Fancy	Respond to of 22640

***!! Brazil shrs seen firmer at open, eyes on Wall St Reuters, Tuesday, April 14, 1998 at 09:23 SAO PAULO, April 14 (Reuters) - Brazilian stocks were seen firmer at Tuesday's open as local investors were expected to continue chasing up shares eyeing gains on Wall Street and ahead of Wednesday's index futures expiration, brokers said. "I think we are set to rise for the next two to three days if the New York market continues to be good," said one broker. Players appear to be calm after two officials were appointed Monday to oversee the telecom privatization drive while Communications Minister Sergio Motta was in hospital. On Monday, the Sao Paulo bolsa's 51-share Bovespa index (INDEX:$BVSP.X) closed up 1.22 percent at 12,121 points. Brokers also said some long-standing doubts about how Telebras (SAO:TEL_.P) shares would be traded following its privatization later this year may be removed on Tuesday as the Sao Paulo Stock Exchange (Bovespa) was planning to explain its new trading scheme to brokers later in the day. "Brokers will have a clearer idea tomorrow, just in time for the options settlement next week," a local trader said. The Bovespa said last week it has created receipts that will allow investors to trade in Telebras after its pre-privatization break-up. Meanwhile, trade was expected to be volatile ahead of Wednesday's futures expiry and next Monday's options settlements, as investors jostle stock prices, especially Telebras, to gain advantage. Telebras accounts for 90 percent of options trade in Sao Paulo. Blue-chip activity Monday: Telebras up 2.25 pct at 145.20 reais Petrobras up 1.05 pct at 288.99 reais Eletrobras off 2.36 pct at 53.70 reais Vale do Rio Doce up 2.13 pct at 28.70 reais *** Sao Paulo stock exchange's Bovespa index of the 51 most traded shares: * Monday: up 1.22 pct at 12,121 pts * Week: up 1.2 pct * Month: up 1.4 pct * Year-to-date: up 18.8 pct ***** SELIC (open): 2.92 pct Dollar/Real (open): 1.1400 per dollar noriko.yamaguchi@reuters.com)) Copyright 1998, Reuters News Service