1. Future value creation in the mobile operator business INFOBALT conference “Information Society 2003” 21 October 2003 Darius Masionis CEO and Chairman of the Management Board BITĖ GSM UAB www.bite.lt

2. 2 2 The vision of BITĖ Each further step in making life easier for our customers is a win for us. Therefore BITĖ will be number one in serving the customers, as we deliver easy-to-understand and easy-to-use communication services and we add heart in what we do. Because we care.

3. 3 3 BITĖ today 8 years in the Lithuanian market Full scale mobile operator providing mobile communications services to the Lithuanian market and adding data and internet solutions for the business market 100% owned by TDC GSM 900 and 1800 mobile network covering 99% of population EUR 30 million investment on a yearly basis 440 employees EUR 102 million turnover in 2002 (51% growth compared to 2001) 485 thousand customers EOY 2002 (56% growth compared to 2001) Ranked among Top 20 companies in Lithuania Sources: BITĖ GSM; SIC Market Research, 2002

4. 4 4 The changing Lithuanian telecommunications landscape In Q2 2003 51% owned mobile phones 25% owned regular phones 28% used internet 14% used internet banking In the beginning of 2000 13% owned mobile phones 32% owned regular phones 10% used internet 0.5% used internet banking Out of 3.5 million population in Lithuania: Sources: Lithuanian Department of Statistics; INFOBALT Lithuania; Hansabankas; BITĖ GSM

5. 5 5 The growing Lithuanian telecommunications market The Lithuanian telecommunications market revenues, mEUR Source: BITĖ GSM, 2003 figure is forecast

6. 6 6 Source: BITĖ GSM, Q2 2003 BITĖ maintains 30% of the Lithuanian mobile market Mobile voice revenue market development, %

7. 7 7 2002 The Lithuanian mobile telecommunications historic breakthrough Source: BITĖ GSM; 2003 figures are forecasts

8. 8 8 Global communications market has changed significantly since 2000 In 2000 Optimistic growth prognosis Hype over new economy Increased penetration Number of customers Long term growth Third generation, UMTS Consolidation From 2002 Heavy debts, growth slowdown Back to balance sheet approach Penetration peak Increase Revenue per user Reduce customer acquisition costs Cash, Return on Investments Consolidation Shift in boardroom priorities in global communications

9. 9 9 Market players are in search for growth opportunities and new business models Development within current businesses Expansion within the value chain Deployment of intangibles into other industries ++ + + Continues to be top priority Current markets New markets Option to explore Content provider Content owner/ developer Device design, offering and installation Service outsourcing for clients Redeploying intangibles into adjacent industries

10. 10 BITĖ’s approach to future value creation to customers Simple and convenient grouping of products and services in order to promote unlimited usage possibilities Usage-oriented rate plans and points-based loyalty programs for all customer segments in the CRM environment Integrated solutions for business customers combining their needs for communication within mobile, Internet and data services including international connectivity and VPN solutions Consumer content and applications delivered independently of transport technology, provision of fixed and mobile portal services Partnerships as a cost effective channel to new competencies

11. 11 Private clientsBusiness clientsPre-paid clients Rate plans Subscriber groupings related services Loyalty programs Internet self-care Mobile solutions: mail, internet, office BITĖ plus portal: mobile internet services and entertainment integrated with SMS, MMS, IVR and M-Pay BITĖ’s products and services portfolio to make life easier for the customer

12. 12 Mobile Voice and SMS Communication Mobile Data Communication Internet and Intranet Communication Data Communication from A to B =>Z Access@ mailHosting Virtual Private Network High Speed Data GPRS Mobile Office Rate Plans City Plans Value added services Self care Connect subsidiaries Leased lines International connectivity BITĖ’s integrated solutions for business customers

13. 13 BITĖ Plus portal: mobile internet services and entertainment integrated with SMS, MMS, IVR and M-Pay www.bite.lt/en/plus Services in BITĖ Plus are organised according to basic consumer needs: –Entertainment (Logos / Ring-tones / Games / Fun&Crazy) –Information (News / Sports / Information) –M-commerce (Payments / Banking) –Socializing (Chatting and Communicating / Dating) BITĖ Plus combines all content services BITĖ has or is running them together with more than 50 partners BITĖ Plus structure is open for partners to add content or links and charge BITĖ users

14. 14 The non-voice/data part is a major future driver of the mobile operator business, which involves application of competencies and technologies outside the scope of traditional mobile operator activities …services and applications serving the customer on the move …entertainment services stimulating customer’s leisure time The future is about… Partnerships are perceived at BITĖ as primary vehicles on the non-voice services growth highway

15. 15 Non-voice traffic growth and variety on non- voice services are expected to open up new revenue streams EUR 385 billion market revenue split EOY 2001 Non-voice 7 % Voice 93 % Estimated EUR 810 billion market revenue split EOY 2006 SMS 14 % Advertising 4% Voice 65 % Business services 4% Games and entertainment 5 % Transactions 2 % Other 6 % Source: NOKIA, 2002

16. 16 In 2002 BITĖ’s non-voice revenues reached 12% of total revenues Within 10 years BITĖ is aiming to achieve that 50% of its total revenues are non-voice related BITĖ believes in the non-voice services demand in Lithuania BITĖ will keep offering flexible and easy to use mobility services that contribute to our customers’ business success and will help people create a better life. Leveraging voice with non-voice services…