SUCCESS STORY OF OMNITEL

STRATEGIC CONCEPT

A parthership of business, state ant the public at large - to create a knowledge-based society. The latest technology, information and

ideas - to realise this aim. Human personality is the highest concern of the present day.

You have a trusted friend

MISSION

at any point in any space.

that would ensure ability to interact

We develop and provide most advanced means of communication

HOW THE COMPANY WAS FOUNDED

“Independent communications is the basis of the democratic society.”dr. Juozas Kazickas

• In 1991, after Lithuania regained its independence, Dr. J. Kazickas founded the Company. • The idea behind this was to establish independent communications with the rest of the world. • The first private telecommunications company in Eastern Europe.• One of the first major investors in the country’s economy.

Firm initial steps helped to lay down the foundations for successful activities of Omnitel

This year Omnitel celebrates the 10th anniversary of its activities.

The company made its first steps together with the newly-independent state.

One of the founding members of Omnitel, Juozas Kazickas, was actively involved in the preparation of state programmes to transform the Lithuanian economy from the model of planned economy to a market economy.

The founding of Omnitel was one of his personal contributions to the development of the Lithuanian economy.

The importance of independent communications with the world was one of the most important issues to the state which at that time got involved in information wars with Russia

The idea of Mr Kazickas to found a telecommunications company which would be independent from the Russian dictatorship was approved and encouraged in 1991 by the Lithuanian Government of that time.

Following the establishment of Omnitel, Lithuania opened its door to the world.

We did this before Latvia, Estonia, Byelorussia, Ukraine and many other neighbouring countries.

Furthermore, the establishment of a telecommunications company meant the influx of huge private capital to Lithuania.

The first major investments into the newly-independent Lithuanian economy gave this country a real opportunity to get on its feet.

From the very start, Omnitel became one of the largest investors into the Lithuanian economy and one of the largest Lithuanian companies.

The founders of Omnitel set a goal to bring the latest telecommunications technologies to Lithuania and provide the broadest possible range of services.

The successfully chosen operational strategy and the philosophy of a company striving for leadership allowed fast development of activities and formed a basis for securing a leadership position for this company working in the field of telecommunications.

This year Omnitel celebrates the 10th anniversary of its activities.

The company made its first steps together with the newly-independent state.

One of the founding members of Omnitel, Juozas Kazickas, was actively involved in the preparation of state programmes to transform the Lithuanian economy from the model of planned economy to a market economy.

The founding of Omnitel was one of his personal contributions to the development of the Lithuanian economy.

The importance of independent communications with the world was one of the most important issues to the state which at that time got involved in information wars with Russia

The idea of Mr Kazickas to found a telecommunications company which would be independent from the Russian dictatorship was approved and encouraged in 1991 by the Lithuanian Government of that time.

Following the establishment of Omnitel, Lithuania opened its door to the world.

We did this before Latvia, Estonia, Byelorussia, Ukraine and many other neighbouring countries.

Furthermore, the establishment of a telecommunications company meant the influx of huge private capital to Lithuania.

The first major investments into the newly-independent Lithuanian economy gave this country a real opportunity to get on its feet.

From the very start, Omnitel became one of the largest investors into the Lithuanian economy and one of the largest Lithuanian companies.

The founders of Omnitel set a goal to bring the latest telecommunications technologies to Lithuania and provide the broadest possible range of services.

The successfully chosen operational strategy and the philosophy of a company striving for leadership allowed fast development of activities and formed a basis for securing a leadership position for this company working in the field of telecommunications.

OMNITEL’S SHAREHOLDERS

Shareholders guarantee basis for viable business

OMNITEL TODAY· The largest telecommunications company in the Baltic States according to the number of customers: by the end of September 2003 Omnitel had 965.000 subscribers. In June 2003 Omnitel became Lithuania’s largest provider of telecommunications services.

· One of the largest investors - about 1 billion Lt into Lithuanian economy.

· Service leader: - widest range of GSM services; - widest choice of data solutions; - broadest experience in the development of convergence solutions (Internet+mobile);- largest number of mobile Internet solutions.

Services and solutions are developed taking into account customer needs.

· Technology leader:

- first in Lithuanian to introduce GSM connection (1995),

- one of the first in Europe to provide integrated services portal to GSM service users (1999),

- first in Lithuania to introduce WAP protocol for data transfer and the first WAP portal (wap.omni.lt) (1999),

- one of the first in the world to introduce GPRS (2001), as well ast MMS, Bluetooth technologies (2002),

- the first in the world to launch and operate Motorola’s latest base stations Horizon II (2003).

- Omnitel is the 4th company in Europe and the 7th in the world to have implemented on its network the latest GPRS technology CS3/CS4 (2003). GPRS data transfer rates are increased up to 70 per cent.

Omnitel is the largest mobile communications company in the Baltic States

Omnitel has reached its goal and today has the strongest position on the Lithuanian telecommunications market.

(Leader of technologies) Omnitel often implements technologies in Lithuania even before they are introduced in other countries of the world or introduces them alongside with other world operators.

(Leading service provider) The company places great importance to ensuring that the latest technologies produce real benefits to Lithuanian people, therefore, it makes a lot of efforts and works hard to develop specific services. Currently, Omnitel, as a telecommunications company, offers the broadest range of services to its customers.

Omnitel now offers the same services to its customers as those provided by West European and Scandinavian mobile operators.

(Investments) The company is currently one of the most important economic entities in the country. It is one of the largest investors and tax payers. It has the largest influence on the formation of the Lithuanian and Baltic telecommunications markets.

(Number of customers) Omnitel’s efforts and investments was a determining factor for the company in securing a leadership position in the Baltic region. In terms of the number of customers, Omnitel is currently ahead of all the Lithuanian, Latvian and Estonian mobile telecommunications companies.

Today Omnitel is the country’s unsurpassable leader in the field of mobile telecommunications.

Omnitel has reached its goal and today has the strongest position on the Lithuanian telecommunications market.

(Leader of technologies) Omnitel often implements technologies in Lithuania even before they are introduced in other countries of the world or introduces them alongside with other world operators.

(Leading service provider) The company places great importance to ensuring that the latest technologies produce real benefits to Lithuanian people, therefore, it makes a lot of efforts and works hard to develop specific services. Currently, Omnitel, as a telecommunications company, offers the broadest range of services to its customers.

Omnitel now offers the same services to its customers as those provided by West European and Scandinavian mobile operators.

(Investments) The company is currently one of the most important economic entities in the country. It is one of the largest investors and tax payers. It has the largest influence on the formation of the Lithuanian and Baltic telecommunications markets.

(Number of customers) Omnitel’s efforts and investments was a determining factor for the company in securing a leadership position in the Baltic region. In terms of the number of customers, Omnitel is currently ahead of all the Lithuanian, Latvian and Estonian mobile telecommunications companies.

Today Omnitel is the country’s unsurpassable leader in the field of mobile telecommunications.

LARGEST MARKET SHARE

The Lithuanian mobile telecommunications market by July 31st, 2003

• The Lithuanian business segment chooses Omnitel: the company has secured 70 percent of the Lithuanian business market (Baltic Surveys).

• Around 90 per cent of 100 biggest Lithuanian companies use “Omnitel” services.

Lithuanian business leaders rely on services provided by Omnitel

Market according to “Omnitel” evaluation

OMNITEL’S TURNOVERThe telecommunications market is one of the most rapidly changing business areas. Fast advances of world technologies forces us to observe the changes and latest developments very closely so that we would be able to offer the newest services to our customers. Most up-to-date services is the key to success in the business of mobile telecommunications.

The company implements and puts on the market state-of-the-art solutions on favourable terms.

Rapid development of the company’s business proves that Omnitel is able to keep pace with the development of world technologies.

The company got on its feet within five years and has been earning profits since 1996.

Last year, the turnover of the company reached 340 million Lt.

Omnitel is one of the largest tax payers in Lithuania: in 2000, it paid a total of 33.7 million litas to the state budget. This approximately equals the amount paid out in pensions in three regions of Lithuania.

From the very first year of operation, Omnitel has been one of the largest investors in Lithuania. As stated earlier, investments of Omnitel amounted to 800 million Lt over the 10 years.

Today the company is among the five largest investors. Its investments are growing every year (chart). The main investments are made into the latest technologies, the development of GSM services and improvements of the GSM network.

Investment strategies ensure the development of services and growth of the company.

The telecommunications market is one of the most rapidly changing business areas. Fast advances of world technologies forces us to observe the changes and latest developments very closely so that we would be able to offer the newest services to our customers. Most up-to-date services is the key to success in the business of mobile telecommunications.

The company implements and puts on the market state-of-the-art solutions on favourable terms.

Rapid development of the company’s business proves that Omnitel is able to keep pace with the development of world technologies.

The company got on its feet within five years and has been earning profits since 1996.

Last year, the turnover of the company reached 340 million Lt.

Omnitel is one of the largest tax payers in Lithuania: in 2000, it paid a total of 33.7 million litas to the state budget. This approximately equals the amount paid out in pensions in three regions of Lithuania.

From the very first year of operation, Omnitel has been one of the largest investors in Lithuania. As stated earlier, investments of Omnitel amounted to 800 million Lt over the 10 years.

Today the company is among the five largest investors. Its investments are growing every year (chart). The main investments are made into the latest technologies, the development of GSM services and improvements of the GSM network.

Investment strategies ensure the development of services and growth of the company.

OMNITEL’S INVESTMENTS

Successful investments were the determining factor for the profitable activities of the company

COMMUNICATIONS NETWORKOmnitel’ network reaches the remotest places in Lithuania.

• Omnitel’s network covers 99,7 percent of the country’s territory.• Two-band network: GSM (900 MHz) and DCS (1800 MHz).• Today Omnitel has more than 700 base stations.• 3 switching centres.• Subscribers of Omnitel can use mobile services in 81 countries of the world supported by 182 GSM operators. • Our clients can access the internet in 90 countries around the world, internet via GPRS in 24 countries.

Investments into network and state-of-art technologies build a bridge towards 3G

UNIQUE SOLUTIONS (1)

• Omnitel’s joint portal OMNI.LT – the most popular multi-channel personalized portal providing most convenient electronic communication tools, opportunities to manage GSM services, information and electronic entertainment.•‘Mugė’ (www.omni.lt/muge) - one of the first e-shops in Lithuania. Now it is Lithuania’s largest e-commerce portal.• In co-operation with partners, the first in the Baltic region solutions of applying GPRS technology in business were introduced – establishment of mobile managers’ work places. There are more than 10 solutions at present.• Integrated data transfer solutions (IP VPN via fixed connection and via GPRS).• ‘Mobile Manager’ solution for mobile information management at Vilniaus bankas – unique solution meeting individual customer needs;• Data transmission networks at companies (largest project during six months – integrated solution for Vilniaus bankas).•MPLS service to organize networks for big companies.•Mobile marketing solutions.•OMNI DSL – fast Internet with supplementary service package (whole solution - fixed IP address, e-mailboxes, room for website and database).

In March 2001, Omnitel started providing a new service to its business clients Save komanda (Your team) which is created on the IN (Intelligent network) platform: it is a possibility to provide the short numbers for the company’s mobile telephone users and to connect them into a unanimous network. Short numbers can be used both for making calls within and outside the company. A customer may decide to which subscribers of his/her company or external subscribers a short number will be allocated thus the customer may create his or her own team.

•Omnitel seeks to stimulate e-commerce in Lithuania. It was the first company in the country to offer an e-shop "Muge" (www.muge.lt). Now it represents the largest electronic commerce portal in Lithuania. As many as 12 shops are operating in Mugė and a wide range of commodities are offered in it. Mugė differs from other national electronic shops, due to the possibility to perform payments for the commodities not only by the traditional, but also by the innovative, convenient and secure mode of payment. Recently a possibility to create and control an independent electronic shop "Make an electronic shop yourself" was introduced. It allows the user to create a shop of his/her own and to test its operation. Both hardware and software for this project were provided by "IBM Lietuva". In May 2001, Super.lt was opened in the portal. It is deemed to be one of the biggest projects in the area of electronic commerce in Lithuania. More than 2000 titles of various books and more than 50 computer games could be obtained here. Information on authors, book reviews, possibility to participate in discussions are available here as well. "Mugė" visitors can also participate in the commodity auctions, receive the newest information about electronic commerce in Lithuania and in the world. "Mugė" portal is visited by over 40 000 people a month. Knowing that Internet in Lithuania is used about 8% population (approx. 280 thousand people) such a visiting frequency could be considered as a success.

In March 2001, Omnitel started providing a new service to its business clients Save komanda (Your team) which is created on the IN (Intelligent network) platform: it is a possibility to provide the short numbers for the company’s mobile telephone users and to connect them into a unanimous network. Short numbers can be used both for making calls within and outside the company. A customer may decide to which subscribers of his/her company or external subscribers a short number will be allocated thus the customer may create his or her own team.

•Omnitel seeks to stimulate e-commerce in Lithuania. It was the first company in the country to offer an e-shop "Muge" (www.muge.lt). Now it represents the largest electronic commerce portal in Lithuania. As many as 12 shops are operating in Mugė and a wide range of commodities are offered in it. Mugė differs from other national electronic shops, due to the possibility to perform payments for the commodities not only by the traditional, but also by the innovative, convenient and secure mode of payment. Recently a possibility to create and control an independent electronic shop "Make an electronic shop yourself" was introduced. It allows the user to create a shop of his/her own and to test its operation. Both hardware and software for this project were provided by "IBM Lietuva". In May 2001, Super.lt was opened in the portal. It is deemed to be one of the biggest projects in the area of electronic commerce in Lithuania. More than 2000 titles of various books and more than 50 computer games could be obtained here. Information on authors, book reviews, possibility to participate in discussions are available here as well. "Mugė" visitors can also participate in the commodity auctions, receive the newest information about electronic commerce in Lithuania and in the world. "Mugė" portal is visited by over 40 000 people a month. Knowing that Internet in Lithuania is used about 8% population (approx. 280 thousand people) such a visiting frequency could be considered as a success.

Latest technologies are the crucial factor for service development and company success

UNIQUE SOLUTIONS (2)•GPRS roaming service was started (we have 18 partners).• WLAN is being developed to supplement opportunities provided by GPRS (access points at Vilnius Airport and FORUM Palace).• Omnitel was the first in Lithuania to introduce a service of following moving objects, using GPS satellite positioning system, and their control. • ‘Mobile Secretary’ – free-of-charge information on missed calls. More than 15,6 mio missed calls were reported in 3 months.• ‘SIM plius’ card with particularly broad possibilities was introduced, enabling each subscriber to personalize services received.• ‘S.O.S. calls’ – a unique service allowing making calls at the expense of the called subscriber (‘sponsor’).•·Java mobile games on WAP.OMNI.LT – for the first time in Lithuania users have an opportunity to download a game to their mobile phone.• New SMS, MMS services, games (‘Find Me’, exam results, city security information, learning English, MMS greetings, MMS city maps). During the 1st six months of 2003 more than 60 unique SMS games were developed. Each Omnitel subscriber sends 46 SMS messages per month on the average.• Omnitel introduced a project e-city with to transfer city communications to the electronic environment.

PROFFESIONAL STAFF

Highly-qualified, insightful and motivated staff have significantly contributed to Omnitel’s success.

Omnitel’s staff education: Age of employees:

A team of people united by common ideas and initiatives contributes towards the success of the Company

Omnitel’s management :

Omnitel is proud of and values its team.

We think that our business is driven by people rather that technologies or equipment.

It was only thanks to highly-qualified employees that Omnitel was able to implement GRPS technology and became one of the world leaders in this field.

We are united by a common philosophy and one underlying idea: Omnitel must be the best in everything it does.

This has lead to a tradition that only the best employees stay with the company.

We encourage all initiatives of our employees and provide the basis for their implementation – that is why Omnitel acts as one team.

Omnitel is proud of and values its team.

We think that our business is driven by people rather that technologies or equipment.

It was only thanks to highly-qualified employees that Omnitel was able to implement GRPS technology and became one of the world leaders in this field.

We are united by a common philosophy and one underlying idea: Omnitel must be the best in everything it does.

This has lead to a tradition that only the best employees stay with the company.

We encourage all initiatives of our employees and provide the basis for their implementation – that is why Omnitel acts as one team.

CLOSEST TO PEOPLE (1)

• According to the data from the survey conducted by the market and public opinion research company “SIC rinkos tyrimai” in 2003, Omnitel was the first regarding all indicators - corporate image, strength, modernity, opinion about the company, attractiveness of advertisement and potential employer.

One of the main reasons behind Omnitel’s success is focus on customers’ needs.

We are always aware of the situation on the market and try guess what tomorrow will bring. That is why we are able to offer such services that our customers will certainly need tomorrow.

We try to establish close contacts with our customers and to provide services to them in the most convenient way.

That is why we have a wide customer service network and are constantly expanding it (about sales outlets).

Our clients may choose the most acceptable method of payment for services (pre-payment or a permanent contract with Omnitel) and the most suitable plan (based on who, how intensively and how frequently uses the services).

There are different methods and locations for making payments for services (Omnitel, banks, post office).

Omnitel is implementing promotion programme for loyal customers called Welfare: every year customers are granted increasing discounts for the subscription fee and rate of telephone calls).

We value our customers and try to preserve their loyalty.

To make customers feel our constant attention, we have our Subscriber Service Centre which provides advice on all issues related to Omnitel services round the clock.

Our customers feel our attention: this reflected in the constantly growing number of our subscribers.

One of the main reasons behind Omnitel’s success is focus on customers’ needs.

We are always aware of the situation on the market and try guess what tomorrow will bring. That is why we are able to offer such services that our customers will certainly need tomorrow.

We try to establish close contacts with our customers and to provide services to them in the most convenient way.

That is why we have a wide customer service network and are constantly expanding it (about sales outlets).

Our clients may choose the most acceptable method of payment for services (pre-payment or a permanent contract with Omnitel) and the most suitable plan (based on who, how intensively and how frequently uses the services).

There are different methods and locations for making payments for services (Omnitel, banks, post office).

Omnitel is implementing promotion programme for loyal customers called Welfare: every year customers are granted increasing discounts for the subscription fee and rate of telephone calls).

We value our customers and try to preserve their loyalty.

To make customers feel our constant attention, we have our Subscriber Service Centre which provides advice on all issues related to Omnitel services round the clock.

Our customers feel our attention: this reflected in the constantly growing number of our subscribers.

We are always close to our Customers

CLOSEST TO PEOPLE (2)· 7 Omnitel representative offices are operating.· 14 showrooms of the company in Lithuania’s 8 largest cities.· Omnitel is represented by 4 partner networks – Mikro Visata, Kom Runa, Inta and Sonex Co. and retail chain Simas that started operation in summer 2002. By the end of 2002 the number of SIMAS sales outlets grew up to 90. The company’s services throughout the country are distributed in about 500 sales outlets.· Extra prepaid service is available at 4.500 sales outlets.· Most convenient payment plans and methods, cheaper calls among group members: ‘My Circle’, ‘My Team’, ‘Joint Team’, ‘My Network’, ‘Business League’.· Loyalty programs ‘Gerovė’, ‘Ačiū’, ‘Nauda’ and EXTRA plius.· The most modern in the Baltic States Alcatel customer care center allows ensuring high quality of customer service. The customer care quality is in line with international standards applied by best operators.

About 2,4 million contacts per month and about 70 thousand per day· Existing systems and software facilitate effective customer service: - clearly distinguished customer care directions; - 90 % callers choose automatic service, which allows ensuring good quality ‘live’ customer service;- Information is provided ‘live’, via automatic self-service, by SMS and fax.

We are always close to our Customers

CORPORATE CITIZENOmnitel has always been and will remain an active member of business community and corporate citizen.• development of information society in Lithuania - initiation of the alliance WINDOW TO THE FUTURE to achieve the break point in the internet penetration and overcome digital divide – already launched 29 internet public access points.•participation in development process of information society in Lithuania

• Member of 7 associations, including the Lithuanian Council of Information Society under the President of the Republic of Lithuania, the Information Economic Forum, Infobalt Association, the Coordination Council of the Ministry of Education’s Programme “Schools for Information Lithuania”.

• initiation and sponsorship of computerisation projects for education system• The programme ‘Schools for Information Lithuania’ implemented jointly by Omnitel, its founders, dr. Juozas Kazickas’ Family Fund, Gediminas Gruodis, ex-president of Omnitel, and the Ministry of Education and Science has been launched. • A sponsorship agreement was concluded with Vilnius University where “Omnitel” will provide support to and participate in the establishment of VU Career Centre.

• support for Lithuania’s science, culture and sports• Support is provided for the country’s largest universities, most famous music festivals, the Lithuanian National Olympic Committee and the Lithuanian Basketball League, the most impressive entertainment events.

The path that the company has been following for 10 years and its size and influence allows Omnitel to have its say not only in business life but also in the life of the country and its society.

We view Omnitel as a member of the Lithuanian society which, in addition to different possibilities and goals, has its obligations to its country and people.

We have set three tasks for ourselves in the field of our public activities. 1. We are aiming to promote the development of the information society in Lithuania by taking very specific steps.

2. We devote particular attention and support to the country’s schools and universities since it is there that our young society members are educated.

8 million Lt was allocated to the programme ‘Schools for Information Lithuania’ to set up computer classrooms. A total of 100 Lithuanian schools have already been computerised and are now introducing Internet access, a common school network is being developed.

Remigijus Gaška, Advisor to Lithuanian President Valdas Adamkus, attributes a new significant role to Omnitel: By computerising the country’s schools, Omnitel will thus help solve the two most important social problems in Lithuania, i.e. unemployment and a very considerable lack of progress of rural population in mastering the use of information technologies.

3. We are particularly concerned with the spiritual life of Lithuania, the development of intellectual thought and public education projects.

Omnitel is one of the largest sponsors of different public programmes. For six years, it has been funding well-known festivals of classical music and sponsoring sports and other teams. Events such as Pažaislis Music Festival and Vilnius Festival, have a major influence on the country’s spiritual life.

Currently, the situation in the country’s cultural life is far from good, therefore, our company’s position is that the concern for the spiritual life of the nation cannot be left only to the state.

Omnitel has always been concerned with the cultural situation in Lithuania, as it determines the general way of life of the country, people’s thinking and self-attitude. That is why we are particularly focusing on those cultural facts that influence the cultural context both of our country and the whole Baltic region.

The path that the company has been following for 10 years and its size and influence allows Omnitel to have its say not only in business life but also in the life of the country and its society.

We view Omnitel as a member of the Lithuanian society which, in addition to different possibilities and goals, has its obligations to its country and people.

We have set three tasks for ourselves in the field of our public activities. 1. We are aiming to promote the development of the information society in Lithuania by taking very specific steps.

2. We devote particular attention and support to the country’s schools and universities since it is there that our young society members are educated.

8 million Lt was allocated to the programme ‘Schools for Information Lithuania’ to set up computer classrooms. A total of 100 Lithuanian schools have already been computerised and are now introducing Internet access, a common school network is being developed.

Remigijus Gaška, Advisor to Lithuanian President Valdas Adamkus, attributes a new significant role to Omnitel: By computerising the country’s schools, Omnitel will thus help solve the two most important social problems in Lithuania, i.e. unemployment and a very considerable lack of progress of rural population in mastering the use of information technologies.

3. We are particularly concerned with the spiritual life of Lithuania, the development of intellectual thought and public education projects.

Omnitel is one of the largest sponsors of different public programmes. For six years, it has been funding well-known festivals of classical music and sponsoring sports and other teams. Events such as Pažaislis Music Festival and Vilnius Festival, have a major influence on the country’s spiritual life.

Currently, the situation in the country’s cultural life is far from good, therefore, our company’s position is that the concern for the spiritual life of the nation cannot be left only to the state.

Omnitel has always been concerned with the cultural situation in Lithuania, as it determines the general way of life of the country, people’s thinking and self-attitude. That is why we are particularly focusing on those cultural facts that influence the cultural context both of our country and the whole Baltic region. Omnitel has a say in solving the most important issues of

the society’s life and supports projects of the future

TODAY WE DEVELOP

RELIABLE AND CONVENIENT

COMMUNICATION

“Omnitel is the driving force behind the revolution of information

technologies in Lithuania.”

Tim Kennedy, The Washington Times

Thank you!