ČESKÝ TELECOM 2004 First Nine Months Results

1. ČESKÝ TELECOM2004 First Nine Months Results Conference call Gabriel Berdár, Chairman of Board of Directors and CEO Juraj Šedivý, 1st Vice-Chairman of Board of Directors and CFO

2. CAUTIONARY STATEMENT: Any forward-looking statements concerning future economic and financial performance of CESKY TELECOM, a.s. and Eurotel Praha, spol. s r.o. contained in this Presentation are based on assumptions and expectations of the future development of factors having material influence on the future economic and financial performance of CESKY TELECOM, a.s. and Eurotel Praha, spol. s r.o. These factors include, but are not limited to, public regulation in the telecommunications sector, future macroeconomic situation, development of market competition and related demand for telecommunications and other services. The actual development of these factors, however, may be different. Consequently, the actual future results of economic and financial performance of CESKY TELECOM, a.s. and Eurotel Praha, spol. s r.o could materially differ from those expressed in the forward-looking statements contained in this Presentation. Although CESKY TELECOM, a.s. makes every effort to provide accurate information, we cannot accept liability for any misprints or other errors. 2

3. First 9 Months 2004 Summary Highlights • Strong performance in high growth areas such as data and Internet related services • Decline of traditional voice services driven by current market trends • Significant efficiency improvements in fixed technology segment • Continued strong growthof mobile technology segment • Achieved first synergies between fixed network and mobile network • Constantly achieving above average EBITDA margin • CAPEX & OPEX discipline driven by higher efficiencies • Generated significant free cash flow and reduced outstanding debt 3

4. ČESKÝ TELECOM Group in 9M 2004 Consolidated Financials – Solid Revenues & Cost Discipline • 24% yoy increase in total Group revenues of CZK 46.5 bn • 55% yoy increase in revenues from Internet related, data and value added services to CZK 5.5 billion • EBITDA margin of 48% • CAPEX of CZK 3.4 billion, i.e. 7.4% of revenues • Significant Free cash flows of CZK 14.5 bn generated (i.e. 31.2% of revenues; or CZK 60 per share, annualized) • Net leverage decreased to 29% from 45% at year end 2003 4

5. ČESKÝ TELECOM Group in 9M 2004 Operating Performance – Transformation Goals on Target • Staff reduced by 22.5% to 11,705 employees - helped by fixed technology segment‘s employees reduction by 27.1% - improving lines per employee ratio in fixed technology segment by 30.0% to 371 - increasing revenues per fixed technology segment employee by 24% to CZK 2.6 million • Improved customer care in fixed technology segment - significant decrease of average time for claims settlement - decreasing average instalation time of retail ADSL,PSTN and ISDN connections • First fixed & mobile segments synergies achieved • Anticipated reduction of dial-up internet traffic in favour of broadband services • Launch of experimental transmission of digital TV signal in Prague and Brno 5

6. ČESKÝ TELECOM Group in 9M 2004 Regulatory Environment • Steps taken to improve cooperation with CTO • Active communication with other regulatory institutions • Retail tariffs of voice services to reflect the requirements of regulators • Pro-active involvement in the preparation process of the new Electronic Communications Act in the Parliament Shareholders‘ Issues • Approved dividend distribution of CZK 5.5 billion, i.e. CZK 17 per share paid on October 20, 2004 • Dividend from Eurotel of CZK 4 billion paid on May 31, 2004. Another dividend of CZK 4 billion to be paid by the end of 2004 • ČESKÝ TELECOM engaged Deutsche Bank as its advisor for privatisation • Czech government to decide on privatization of ČESKÝ TELECOM in November 2004, advised by CSFB/CS 6

7. Synergy Initiatives • The new vision of meeting our customers present and future needs • Jointly presented at Invex Fair 2004 Maximizing Group Value by Exploiting the Potential Synergies sharing infrastructure, assets, know-how and best practices saving costs by using shared services, joint purchasing and removing duplicities Product development & marketing - leveraged and converged products Sales - own shops (reciprocal dealership, 2-in-1 locations), indirect channels (hypermarkets, dealers), direct sales (converged products, corporate win-back) Billing & collection - joint outsourcing of print centers Customer care – joint tender for IVR systems, resources, knowledge Access, network & construction – optimized utilization of Group capacities, cooperation on digital TV infrastructure Procurement & logistics

8. New products & tariff offerings • Internet Expres acquired 3/4 of all orders on the Czech ADSL market since its launch in May, 2004 with weekly net adds at 2000 • 59,301 ADSL connections – 336% yoy increase in net additions (45,961 vs. 10,485) Internet Expres– Single fee package combining unlimited broadband internet access with subscription for voice service experiencing accelerating customer interest • 512/128 kb/s or 1024/256 kb/s speeds and two price plans: Telefon Universal with lowest per minute rates or Telefon Universal Dialog with flat charges per call • Attractive prices starting at CZK 999 per month (excl. VAT) • Attractive content offering for Internet Expres customers starzone.cz– entertainment portal with expanding catalogue of films, TV shows and music available to Internet Expres customers gamezone.cz– Gaming portal on which players spent 950 thous. hours in 3Q 2004 8

9. More mobile data and content services • More than 70% of population covered with CDMA signal from the beginning • Succesfully received by customers; more than 11 thous. customers at the end of the period Eurotel Data Express Eurotel Data Expres- Unlimited high-speed Internet access at a flat fee • First high-speed mobile Internet in the Czech Republic, launched August 2, 2004 • First world‘s implementation of CDMA 2000 1xEV-DO technology, offering connection speed up to 800 kbit/s (256 kbit/s on average) • Complements T!P service based on NMT technology within the 450 MHz network Eurotel Data Nonstop– GPRS based unlimited Internet access for flat fee Eurotel WiFi Jet– Internet access via the largest WiFi network in the Czech Republic (mutual use of Český Telecom‘s and Eurotel‘s hot spots) Eurotel Live!– integrated web and mobile portal which offers content (news, music, films, games, sports, downloads, etc) via Internet or WAP. 9

10. Operational data 1) paid (IOL) and free (Quick.cz) internet access 10

11. Consolidated Income Statement Note: consolidated, under IFRS. First 9 months 2003 results are based on proportional 51% consolidation of Eurotel. First 9 months 2004 results are based on full consolidation of Eurotel. 11

12. Consolidated Balance Sheet . . Note: consolidated, under IFRS. End of September 2003 numbers are based on proportional 51% consolidation of Eurotel. End of September 2004 numbers are based on full consolidation of Eurotel. 12

13. Consolidated Cash Flow . . • 1) Net cash from operating activities less Net cash from investing activities excl. marketable securities and purchase of financial investments • 2) Net operating cash less Net investing cash excl. marketable securities, purchase of financial investments and interest Note: consolidated under IFRS. First 9 months 2003 results are based on proportional 51% consolidation of Eurotel. First 9 months 2004 results are based on full consolidation of Eurotel. 13

14. Capital Expenditures (CZK mil.) 11.3% 7.4% CAPEX to revenues ratio 9M 2003* 9M 2004** Note: in CZK mil., as per balance sheet, under IFRS * 51% consolidation of Eurotel ** 100% consolidation of Eurotel 14

15. Fixed Segment Data Related and Value AddedServices Revenues +6.5% +5.3% +17.0% +15.1% (CZK mil.) +16.0% Note: in CZK mil., before consolidation adjustments, under IFRS 15

16. Fixed Segment Communication Traffic and Subscription Revenues -3.9% -7.5% (CZK mil.) -14.3% -13.8% -15.4% Note: in. CZK mil., before consolidation adjustments, under IFRS 16

17. Mobile Segment Data Related and Value Added Services Revenues +4.9% -3.8% +13.8% (CZK mil.) +14.3% +19.5% Note: in CZK mil., before consolidation adjustments, under IFRS 17

18. Mobile Segment Communication Traffic and Subscription Revenues +0.5% +4.7% -1.9% -3.2% (CZK mil.) -4.6% Note: in CZK mil., before consolidation adjustments, under IFRS 18

19. Fixed Line Operating Revenues Breakdown CZK 27,491 mil. CZK 26,065 mil. -5.2% 37% 30% (CZK mil.) 34% 33% 10% 8% 11% 9% 7% 8% Note: before consolidation adjustments, under IFRS Fixed technology segment‘s revenues include transformation related and exceptional revenues and insurance receipts of CZK 305 mil. in 9M 2003 and of CZK 832 mil. in 9M 2004 19

20. Fixed Line Operating Costs Structure CZK 14,895 mil. CZK 14,213 mil. • 4.6% 25% 26% 34% (CZK mil.) 31% 31% 32% Note: before consolidation adjustments, under IFRS Fixed technology segment‘s costs include restructuring and exceptional costs of CZK 237 mil. in 9M 2003 and of CZK 998 mil. in 9M 2004 20

21. Mobile Operating Revenues Breakdown CZK 21,938 mil. CZK 21,597 mil. + 1.6% 40% 45% (CZK mil.) 18% 17% 13% 11% 23% 23% Note: before consolidation adjustments, under IFRS 21

22. Mobile Operating Costs Structure CZK 11,345 mil. CZK 10,463 mil. + 8.4% 37% 39% 19% (CZK mil.) 15% 11% 11% 21% 23% Note: before consolidation adjustments, under IFRS. 22

23. Outlook for 2004/2005 • EBITDA margins expected to be higher than other European incumbents • Focus on revenue retention supported by revenue growth in data and integrated services despite continuing pressure on traditional voice segment • Accelerated demand for Internet Express continues to be the main growth driver on the revenue side • Focus on further synergies between fixed and mobile technology operations • Focus on operating efficiencies improvement • Decline of Depreciation & Amortization • CAPEX at approx. 10-12% of revenues • Free cash generation to be maintained • Continuing fixed-line staff reduction • New Act on Electronic Communications in line with EU standards expected to strenghten ČESKÝ TELECOM‘s position in regulatory framework • ČESKÝ TELECOM‘s privatization to go ahead 23

24. Contacts Investor Relations tel: +420 271 462120 fax: +420 271 469877 e-mail: investor.relations@ct.cz www.telecom.cz 24