For Immediate Publication Exhibit 99.1

Highlights
For the third quarter and first nine months ended September 30, 2002
All amounts are in US$ unless otherwise stated

TIW Reports EBITDA of $71 Million
and Operating Income of $30 Million

- Year-to-date EBITDA increases to $179 million
and operating income to $69 million

• Consolidated operating income before depreciation and amortization (EBITDA) from continuing operations increased 80% to $71.1 million compared to $39.6 million for the third quarter of 2001. For the first nine months, EBITDA increased 114% to $179.1 million compared to $83.8 million for the same period last year. Operating income from continuing operations increased 262% to $30.4 million compared to $8.4 million for the same period.

• TIW recorded net additions for the third quarter of 202,200, to reach total subscribers from continuing operations of 3,707,400, up 56% compared to 2,369,800 at the end of the third quarter of 2001.

• In Romania, MobiFon, the market leader with an estimated 53% share of the cellular market, added 125,500 net subscribers for the third quarter for a total of 2,462,500, compared to 1,622,700 subscribers at the end of the same 2001 period, an increase of 52%. Service revenues reached $112.6 million, an increase of 17% compared to $96.1 million for the third quarter last year. EBITDA increased 23% to $64.4 million compared to $52.4 million for the same period last year and EBITDA as a percentage of service revenue improved to 57% compared to 54% in the quarter ending September 30, 2001. Operating income rose 30% to $43.0 million compared to $32.9 million for the third quarter in 2001.

• In the Czech Republic, Ceský Mobil added 68,300 net subscribers for the third quarter, to reach 1,139,600 subscribers, an increase of 68% compared to 680,300 subscribers at the end of the third quarter of 2001. Service revenues increased 82% to $62.9 million compared to $34.5 million for the third quarter of 2001. EBITDA was $8.4 million, Ceský Mobil’s third consecutive quarter of positive EBITDA, compared to negative EBITDA of $5.8 million for the same period last year.

• Consolidated service revenues increased 32% to $175.5 million compared to $132.8 million for the third quarter of 2001 and operating income from continuing operations increased to $30.4 million compared to $8.4 million for the same period last year. Loss from continuing operations was $9.0 million, or $0.02 basic and diluted loss per share compared to income from continuing operations of $217.3 million or $12.87 and $3.26 per basic and diluted share, respectively, for the third quarter of 2001. The current quarter’s loss from continuing operations includes a one time charge of $10.1 million related to MobiFon’s debt refinancing. Income taxes for the quarter were $10.8 million and relates to Romanian taxes where in the corresponding period last year, MobiFon benefited from prior years’ losses carried forward. During the third quarter of 2001, the Company recorded a non-cash gain of $238.9 million on the forgiveness of debt and also recorded a loss on sale of its interest in a Brazilian wireless Internet venture of $8.6 million. After adjustment for the above items, loss from continuing operations for the third quarter of 2001 would have been $13.1 million.

• During the third quarter, the Company recorded a loss from discontinued operations of $32.3 million in relation with its Brazilian assets due to the deterioration of the value of the Brazilian real relative to the US dollar. As a result, net loss for the third quarter amounted to $41.3 million or $0.08 basic and diluted loss per share. For the third quarter of 2001, the Company recorded a loss from discontinued operations of $33.4 million, for net income of $183.9 million, or $10.83 basic earnings per share and $2.76 fully diluted earnings per share.

• For the first nine months of 2002, consolidated service revenues increased 34% to $470.6 million compared to $350.5 million for the same period last year. Operating income from continuing operations was $69.0 million compared to an operating loss of $3.2 million for the same period last year, an improvement of $72.2 million. Income from continuing operations was $70.4 million, or $0.16 basic and diluted earnings per share, including a pre-tax non-cash gain of $91.1 million mainly related to the financial restructuring completed during the first quarter and the expiry of the TIW Units and one time debt refinancing charges of $10.1 million.

• Net loss for the nine month period was $91.5 million or $0.21 basic and diluted loss per share resulting from a $161.9 million loss from discontinued operations recorded during the period. For the 2001 period, the Company recorded income from continuing operations of $178.3 million, or $9.66 and $4.79 per basic and diluted share, respectively, and a $363.9 million loss from discontinued operations mainly related to Dolphin Telecom plc, partially offset by the $238.9 million non-cash gain on the forgiveness of debt described above, resulting in a net loss of $185.6 million, or $12.74 and $4.95 per basic and diluted share, respectively.

Press Release
For the third quarter and first nine months ended September 30, 2002
All amounts are in US$ unless otherwise stated

TIW Reports EBITDA of $71 Million
and Operating Income of $30 Million

- Year-to-date EBITDA increases to $179 million
and operating income to $69 million

Montréal, Canada, November 12, 2002 – Telesystem International Wireless Inc. (“TIW” or the “Company”) (TSX, “TIW”, Nasdaq, “TIWI”) today reported its results for the third quarter and first nine months ended September 30, 2002.

Consolidated operating income before depreciation and amortization (EBITDA) from continuing operations increased 80% to $71.1 million compared to $39.6 million for the third quarter of 2001. For the first nine months, EBITDA increased 114% to $179.1 million compared to $83.8 million for the same period last year. The strong EBITDA growth reflects the continued solid performance in Romania and improved results in the Czech Republic where the Company’s operating subsidiary recorded a third consecutive quarter of positive EBITDA. Operating income from continuing operations increased 262% to $30.4 million compared to $8.4 million for the same period last year.

“We are pleased with our performance in the third quarter and the first nine months of 2002. Our strong growth in EBITDA and operating income reflects our focus on achieving profitable growth and effective cost management” said Bruno Ducharme, President and Chief Executive Officer of TIW. “MobiFon in Romania remains one of the most profitable mobile operators in Europe while our operation in the Czech Republic having reached a critical mass continues to improve its financial performance.”

Results of Operations

TIW recorded net additions for the third quarter of 202,200, to reach total subscribers from continuing operations of 3,707,400, up 56% compared to 2,369,800 at the end of the third quarter of 2001. Consolidated service revenues increased 32% to $175.5 million compared to $132.8 million for the third quarter of 2001. The strong revenue growth, lower selling, general and administrative expenses (“SG&A”) as a percent of revenues and continued cost management at the corporate level resulted in an operating income from continuing operations of $30.4 million compared to $8.4 million for the same period last year.

Loss from continuing operations was $9.0 million, or $0.02 basic and diluted loss per share compared to income from continuing operations of $217.3 million or $12.87 and $3.26 per basic and diluted share, respectively, for the third quarter of 2001. The current quarter’s loss from continuing operations includes a one time charge of $10.1 million related to MobiFon’s debt refinancing. Income taxes for the quarter were $10.8 million and relates to Romanian taxes where in the corresponding period last year, MobiFon benefited from prior years’ losses carried forward. During the third quarter of 2001, the Company recorded a non-cash gain of $238.9 million on the forgiveness of debt and also recorded a loss on sale of its interest in a Brazilian wireless Internet venture of $8.6 million. After adjustment for the above items loss from continuing operations for the third quarter of 2001 would have been $13.1 million. During the third quarter 2002, the Company recorded a loss from discontinued operations of $32.3 million in relation with its Brazilian assets primarily due to the deterioration of the value of the Brazilian real relative to the US dollar. As a result, net loss for the third quarter amounted to $41.3 million or $0.08 basic and diluted loss per share. For the third quarter of 2001, the Company recorded a loss from discontinued operations of $33.4 million, bringing net income to $183.9 million, or $10.83 basic earnings per share and $2.76 fully diluted earnings per share.

For the first nine months of 2002, consolidated service revenues increased 34% to $470.6 million compared to $350.5 million for the same period last year. Operating income from continuing operations was $69.0 million compared to an operating loss of $3.2 million for the same period last year, an improvement of $72.2 million. Income from continuing operations was $70.4 million, or $0.16 basic and diluted earnings per share, including a pre-tax non-cash gain of $91.1 million mainly related to the financial restructuring completed during the first quarter and the expiry of the TIW Units and one time debt refinancing charges of $10.1 million described above. Net loss for the nine month period was $91.5 million or $0.21 basic and diluted loss per share resulting from a $161.9 million loss from discontinued operations recorded during the period. For the 2001 period, the Company recorded income from continuing operations of $178.3 million, or $9.66 and $4.79 per basic and diluted share, respectively, and a $363.9 million loss from discontinued operations mainly related to Dolphin Telecom plc, partially offset by the $238.9 million non-cash gain on the forgiveness of debt described above, resulting in a net loss of $185.6 million, or $12.74 and $4.95 per basic and diluted share, respectively.

MobiFon S.A. – Romania

MobiFon, the market leader in Romania with an estimated 53% share of the cellular market, added 125,500 net subscribers for the third quarter for a total of 2,462,500, compared to 1,622,700 subscribers at the end of the same 2001 period, an increase of 52%. For the same quarter last year, MobiFon recorded 160,400 net additions and held a market share of approximately 50%. The pre-paid/post-paid mix at the end of the third quarter 2002 was 65/35 compared to 62/38 a year ago, consistent with the higher proportion of prepaid subscribers added during the last 12 months.

Service revenues reached $112.6 million, an increase of 17%, due to a larger subscriber base including a larger proportion of prepaid subscribers, compared to $96.1 million for the third quarter last year. The monthly average revenue per subscriber (ARPU¹) was $14.45 as compared with $14.12 in the preceding quarter and $19.04 in the third quarter of 2001. SG&A expenses decreased to 21% of service revenues compared to 23% for the 2001 corresponding period. EBITDA increased 23% to $64.4 million compared to $52.4 million for the same period last year and EBITDA as a percentage of service revenue improved to 57% compared to 54% in the quarter ending September 30, 2001. Operating income rose 30% to $43.0 million compared to $32.9 million for the third quarter in 2001.

For the first nine months, service revenues increased 19% to $311.5 million compared to $260.7 million for the same period last year. EBITDA increased 24% to $172.8 million compared to $138.9 million for the 2001 period. Operating income rose 31% to $110.1 million compared to $83.9 million for the first nine months of 2001.

Ceský Mobil a.s. – Czech Republic

Ceský Mobil added 68,300 net subscribers for the third quarter, to reach 1,139,600 subscribers, an increase of 68% compared to 680,300 subscribers at the end of the third quarter of 2001. Ceský Mobil estimates it held a 14% share of the national cellular market as of September 30, 2002, compared to an 11% share at the same time last year. During the past 12 months, management estimates cellular penetration in the Czech Republic increased to 78% from 58% at the end of the third quarter of 2001 when Ceský Mobil recorded 140,200 net subscriber additions. The pre-paid/post-paid mix as of September 30, 2002 was 71/29 compared to 68/32 at September 30, 2001. The change in mix is primarily attributable to the strong growth in prepaid subscribers experienced during the last quarter of 2001 and the first quarter of 2002.

Service revenues increased 82% to $62.9 million compared to $34.5 million for the third quarter of 2001. The monthly average revenue per subscriber (ARPU¹) was $18.20 as compared with $16.65 in the preceding quarter and $17.96 in the third quarter of 2001. Ceský Mobil recorded EBITDA of $8.4 million, its third consecutive quarter of positive EBITDA, compared to negative EBITDA of $5.8 million for the same period last year. This improvement reflects the revenue impact of rapid subscriber growth and economies of scale. SG&A expenses declined to 34% of service revenues compared to 46% for the same period last year. Operating loss improved to $10.9 million compared to $17.0 million for the third quarter of 2001.

For the first nine months, service revenues increased 93% to reach $159.1 million compared to $82.6 million for the same period in 2001. EBITDA reached $12.9 million compared to negative EBITDA of $36.0 million for the first nine months of last year, an improvement of $48.9 million. Operating loss declined to $34.4 million compared to $66.5 million for the same period in 2001.

(1) The Company uses the term average revenue per user (“ARPU”) which may not be comparable to similarly titled measures reported by other companies. ARPU excludes revenues from other cellular networks’ customers roaming on the Company’s network. ARPU should not be considered in isolation or as an alternative measure of performance under GAAP. The Company believes ARPU is viewed as a relevant supplemental measure of performance in wireless telecommunications industry.

Corporate and Other

The Company’s wireless operations in India and other corporate activities recorded negative EBITDA of $1.6 million and $6.6 million for the third quarter and first nine months of 2002, respectively. This compares to negative EBITDA of $6.9 million and $19.1 million, respectively, for the same periods last year. The improvement reflects mainly a reduction in corporate overhead following the Company’s restructuring.

Liquidity and Capital Resources

For the third quarter of 2002, operating activities provided cash of $28.3 million compared to $51.9 million in 2001. For the first nine months of 2002, operating activities provided cash of $85.9 million compared to using $34.0 million for the same period last year. Results for 2001 include significant changes in operating assets and liabilities mainly related to Ceský Mobil.

Investing activities used cash of $59.0 million and $166.0 million for the third quarter and first nine months of 2002, mainly for the expansion of cellular networks in Romania and the Czech Republic. This compares to $76.8 million and $161.8 million for the third quarter of 2001 and first nine months last year. The higher amount in the first nine months 2002 period reflects mainly the fact that in 2001, investment in the cellular network in the Czech Republic reached a peak during the last quarter of the year while network investment in the current year has been more evenly distributed.

Financing activities provided cash of $26.0 million for the third quarter mainly related to the net proceeds from MobiFon’s long-term debt refinancing described below, net of the repayment of $10 million of the Company’s senior credit facility. Financing activities provided cash of $86.2 million for the first nine months of 2002, reflecting net proceeds of $41.2 million from a recapitalization completed during the first quarter, $303.1 million of additions to long-term debt and $29.9 million of proceeds from investees’ shares issued to non-controlling interest, partially offset by the repayment of short and long-term debt of $270.4 million and the incurrence of $7.8 million of financing costs in connection with MobiFon’s refinancing.

Cash and cash equivalents at the end of the third quarter totaled $86.9 million, including $28.1 million at the corporate level.

As of September 30, 2002, total consolidated indebtedness was $977.5 million, of which $287.3 million was at the corporate level, $267.7 million at MobiFon and $422.5 million at Ceský Mobil. Total indebtedness at the TIW level was mainly comprised of $63.6 million due under the corporate bank facility and $222.1 million in 14% Senior Guaranteed Notes and related accrued interest and contingent payments. Both the total consolidated indebtedness and corporate indebtedness figures reflect the Company’s financial restructuring and recapitalization which was completed during the first quarter of 2002. On August 23, 2002, the maturity of the corporate credit facility was extended to December 15, 2002. Considering the short term maturity of the corporate credit facility, committed cash obligations of the Company for the upcoming 12 months exceed its committed sources of funds and cash on hand. As previously reported, there is significant uncertainty as to whether the Company will have the ability to continue as a going concern. The Company continues to review opportunities to refinance or amend the terms of its corporate debt, raise new financing and sell assets. The Company is currently in discussions with the syndicate of lenders to extend the terms of its corporate facility beyond its December 15, 2002 stated maturity. There is no certainty the lenders will agree to such extension. The facility is secured by substantially all of the assets of the Company.

On August 27, 2002, MobiFon closed a $300 million senior loan facility. This new facility is composed of two tranches. Tranche I consists of a term loan of $238 million, fully drawn as at September 30, 2002, for which the proceeds were used to repay the interest and principal balance of the syndicated senior credit facilities entered into in 1997 and 1999. Tranche II consists of a term loan of up to $62 million of which $17 million was drawn as at September 30, 2002. Each tranche is repayable in quarterly installments starting in January 2004 and maturing in October 2008. The interest rate on the facility is London Interbanks Offered Rate (“LIBOR”) plus a margin of 3.5% up to December 31, 2003. Thereafter, the interest rate will range from LIBOR plus a margin of 2.5% to LIBOR plus a margin of 4.0% depending on certain financial ratios. As permitted by the loan agreement, the LIBOR portion of the interest rates on $87.3 million of Tranche I and $6.2 million of Tranche II have been fixed at 3.64% and 3.52% respectively. In October 2002, MobiFon also entered into interest rate swap agreements on notional principal amounts of $100 million and $30 million whereby the LIBOR portion of the interest on the related loan principal has been effectively fixed at 3.6% and 3.7%, respectively. During the nine-month period ended September 30, 2002, MobiFon has deferred financing costs in the amount of $7.8 million relating to the new senior loan facility. Under the facility, MobiFon must comply with certain affirmative covenants such as the maintenance of certain financial covenants and ratios, including debt and capital ratios. The facility also contains customary negative covenants and mandatory prepayment provisions which, among other things, limit MobiFon’s ability to create liens, dispose of assets or make distributions not provided for by the facility. The facility allows for distributions of cash provided from operations net of capital expenditures and scheduled debt service subject to MobiFon meeting certain financial ratios and maintaining minimum cash balances. To the extent such ratios are not met, a portion or all of these cash flows may be required to be used for mandatory prepayments of the facility. The facility is collateralized by a pledge of the Company’s and of the minority interests’ shares in MobiFon and by substantially all of the assets of MobiFon.

During the three month period ended September 30, 2002, the unamortized deferred financing costs relating to the extinguished syndicated senior credit facilities in the amount of $5.2 million were written off and additional interest for early repayment and other cancellation fees totaling $4.9 million was incurred.

During the quarter, MobiFon paid $15.5 million to its shareholders, representing the second installment of a $27.6 million dividend declared in March of this year. The final installment of $0.6 million was paid in October 2002. The Company used a portion of the proceeds to repay $10.0 million of its senior credit facility and to fulfill its funding commitments in its operating subsidiary, Ceský Mobil. On October 30, 2002, the shareholders of MobiFon approved further distributions of up to $38.8 million by means of a share repurchase. Shareholders can tender their shares between October 30, 2002 and June 30, 2003 in order to realize their pro-rata share of this distribution amount of which ClearWave’s is $24.6 million which the Company expects to repatriate via the repayment of inter-company loans and interests thereof. A first distribution of $16.6 million was paid on October 30, 2002, of which $15.8 million was paid to ClearWave. MobiFon’s shareholders are expected, but not required, to participate pro-rata in the share repurchase. Accordingly, the Company’s ultimate ownership of MobiFon may vary between 53.4% and 54.8%, throughout the tender period, depending on the timing and the extent of each shareholder’s participation in the repurchase.

Conference Call

The conference call with analysts on the third quarter 2002 results for TIW and ClearWave will be made available via an audio web cast from TIW’s Internet site. It will be made available via an audio web cast from TIW’s Internet site. The web cast is scheduled to begin at 9:00 a.m. EST on Wednesday, November 13, 2002 (at http://www.tiw.ca). A replay of the conference call can also be heard between 12:00 p.m. on November 13 and 11:59 p.m. on December 13. To access the replay facility, dial (416) 695-5800 and you will be instructed to enter the access code: 1295364.

Forward-looking Statements

This news release may contain certain forward-looking statements that reflect the current views and/or expectations of the Company with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

About TIW

TIW is a leading cellular operator in Central and Eastern Europe with over 3.7 million managed subscribers. TIW is the market leader in Romania through MobiFon S.A. and is active in the Czech Republic through Ceský Mobil a.s. The Company’s shares are listed on the Toronto Stock Exchange (“TIW”) and NASDAQ (“TIWI”).

For Information:

Media:	Investors:
Mark Boutet	Serge Dupuis
Telesystem International Wireless Inc.	Telesystem International Wireless Inc.
Tel.: (514) 673-8406	Tel.: (514) 673-8443
mboutet@tiw.ca	sdupuis@tiw.ca

Our web site address is: www.tiw.ca

TELESYSTEM INTERNATIONAL WIRELESS INC.

SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA (UNAUDITED)

(in thousands of U.S. dollars, except operating and per share data)

			Three months ended						Nine months ended
			September 30,						September 30,
			2002			2001			2002			2001
			$			$			$			$
STATEMENTS OF INCOME (LOSS) AND CASH FLOWS DATA:
	Revenues			185,209			139,433			497,992			368,516
	Operating income (loss)			30,374			8,433			68,966			(3,190	)
	Interest expense, net			(26,177	)		(28,582	)		(77,789	)		(89,300	)
	Foreign exchange gain (loss)			(2,675	)		(3,788	)		7,540			(2,970	)
	Gain (loss) on reorganization, Units exchange and expiry and on sale of investments			—			(8,592	)		91,127			(6,011	)
	Expenses related to extinguishment of debt			(10,100	)		—			(10,100	)		—
	Income (loss) from continuing operations			(9,025	)		217,261			70,364			178,308
	Loss from discontinued operations			(32,269	)		(33,383	)		(161,901	)		(363,909	)
	Net income (loss)			(41,294	)		183,878			(91,537	)		(185,601	)
	Basic and diluted earnings (loss) per share
		From continuing operations		(0.02	)		12.87			0.16			9.66
		From discontinued operations		(0.06	)		(2.04	)		(0.37	)		(22.40	)
		Net income (loss)		(0.08	)		10.83			(0.21	)		(12.74	)
	Diluted earnings (loss) per share
		From continuing operations		(0.02	)		3.26			0.16			4.79
		From discontinued operations		(0.06	)		(0.50	)		(0.37	)		(9.74	)
		Net income (loss)		(0.08	)		2.76			(0.21	)		(4.95	)
	Acquisitions of property plant and equipment			58,963			74,208			166,448			143,535
OPERATING DATA FROM CONTINUING OPERATIONS
Operating income before depreciation and amortization (1)				71,124			39,598			179,167			83,830
	Proportionate revenues (2)			77,204			34,722			211,250			93,294
	Proportionate operating income before depreciation and amortization (2)			35,061			8,002			90,004			18,928

		As at September 30,		As at December 31,
		2002		2001
		$		$
		(unaudited)
BALANCE SHEET DATA:
	Cash and cash equivalents from continuing operations		86,929		85,460
	Total assets		1,448,015		1,906,666
	Short-term and long-term debt from continuing operations		977,503		912,202
	Total capital (3)		1,302,784		1,377,494
	Total shareholders’ equity		86,694		169,057

TELESYSTEM INTERNATIONAL WIRELESS INC.

OVERVIEW OF CONTINUING OPERATIONS ⁽⁴⁾

(as at September 30, 2002)

				Start-up		Licensed							Equity
				Date of		POPs		Total		Equity			POPs		Equity
		Technology		Operations		(millions)		Subscribers(5)		Interest(6)			(millions)		Subscribers(2)
Central/Eastern
Europe Cellular
	Romania	GSM			1997		22.5		2,462,500		54.4	%		12.2		1,339,600
	Czech Republic	GSM	Q1 2000				10.3		1,139,567		19.8	%		2.0		225,600
							32.8		3,602,067					14.2		1,565,200
Other
	India (Rajasthan)	GSM			1997		56.5		105,270		12.7	%		7.2		13,400
							56.5		105,270					7.2		13,400
Total							89.3		3,707,337					21.4		1,578,600

(1)	The Company uses the term operating income before depreciation and amortization, also defined as EBITDA, which may not be comparable to similarly titled measures reported by other companies. Operating income before depreciation and amortization should not be considered in isolation or as an alternative measurement of operating performance or liquidity to net income (loss), operating income (loss), cash flows from operating activities or any other measure of performance under GAAP. The Company believes that operating income (loss) before depreciation and amortization is viewed as a relevant supplemental measure of performance in the wireless telecommunications industry.
(2)	Proportionate financial figures and other operational data represent the combination of TIW’s ultimate proportionate ownership in each of its investees and is not intended to represent any measure of performance in accordance with generally accepted accounting principles.
(3)	Consists of share capital, warrants, additional paid-in-capital, equity component of convertible debentures and Units.
(4)	The results of Central and Eastern Europe are fully consolidated. India’s results are accounted for in a manner similar to the equity method. The results of the Company’s interests in Telpart are reported as discontinued operations.
(5)	Figures include 2,406,846 and 60,383 prepaid subscribers in Central and Eastern Europe and India, respectively.
(6)	Figures represent the Company’s direct and indirect ownership interests in its operations before the exercise of options.

TABLE OF CONTENTS

Earnings release for the third quarter

 
 
 
 
 
 

TELESYSTEM INTERNATIONAL WIRELESS INC.

THIRD QUARTER 2002
 

INTERIM FINANCIAL STATEMENTS (UNAUDITED)

TELESYSTEM INTERNATIONAL WIRELESS INC.

CONSOLIDATED BALANCE SHEETS [Note 1]

(in thousands of U.S. dollars)

		September 30,			December 31,
		2002			2001
		$			$
		(unaudited)			[Note 1]
ASSETS
Current assets
	Cash and cash equivalents		86,929			85,460
	Trade debtors		47,689			48,759
	Inventories		17,943			15,385
	Value added taxes recoverable		3,023			6,772
	Deferred tax assets		2,912			3,548
	Prepaid expenses		19,617			11,446
	Vendor prepayments		3,864			10,566
	Current assets related to discontinued operations		—			182,047
	Other current assets		8,218			7,774
Total current assets			190,195			371,757
	Property, plant and equipment		971,480			871,915
	Licenses		95,981			97,667
	Goodwill [Note 2]		52,606			52,606
	Non-current assets related to discontinued operations		—			470,043
	Deferred financing costs [Note 8]		21,807			25,224
	Investments and other assets [Note 10]		115,946			17,454
			1,448,015			1,906,666
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
	Short-term loans		63,588			83,500
	Trade creditors and accrued liabilities		105,565			107,327
	Current liabilities related to discontinued operations		9,962			107,727
	Deferred revenues		30,885			32,370
	Current portion of long-term debt [Note 8]		52			44,519
Total current liabilities			210,052			375,443
	Long-term debt [Note 8]		913,863			784,183
	Deferred tax liabilities		5,038			3,548
	Non-current liabilities related to discontinued operations		—			381,432
	Other non-current liabilities		14,815			14,775
	Non-controlling interest		217,553			178,228
SHAREHOLDERS’ EQUITY [NOTE 3]
	Share capital		1,056,595			696,954
	Additional paid-in-capital		244,875			—
	Equity component of convertible debentures		—			405,195
	Units		—			260,843
	Warrants		1,314			14,502
	Deficit		(1,219,812	)		(1,126,015	)
	Cumulative translation adjustment [Note 5]		3,722			(82,422	)
Total shareholders’ equity			86,694			169,057
			1,448,015			1,906,666

Contingency [Note 1]

See accompanying Notes

TELESYSTEM INTERNATIONAL WIRELESS INC.

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND DEFICIT (UNAUDITED) [Note 1]

(in thousands of U.S. dollars, except per share data)

			Three months ended						Nine months ended
			September 30,						September 30,
			2002			2001			2002			2001
			$			$			$			$
						[Restated, Note 11]						[Restated, Note 11]
REVENUES
	Services			175,457			132,844			470,584			350,534
	Equipment			9,752			6,589			27,408			17,982
				185,209			139,433			497,992			368,516
	Cost of services			52,884			43,695			143,979			124,322
	Cost of equipment			15,016			10,268			41,924			29,792
	Selling, general and administrative expenses			46,185			45,872			132,922			130,572
	Depreciation and amortization			40,750			31,165			110,201			87,020
OPERATING INCOME (LOSS)				30,374			8,433			68,966			(3,190	)
	Interest expense			(26,963	)		(29,771	)		(79,209	)		(94,863	)
	Interest income			786			1,189			1,420			5,563
	Foreign exchange gain (loss)			(2,675	)		(3,788	)		7,540			(2,970	)
	Gain on forgiveness of debt			—			238,940			—			238,940
	Gain (loss) on reorganization, Units exchange and expiry and on sale of investments [Note 3]			—			(8,592	)		91,127			(6,011	)
	Expenses related to extinguishment of debt [Note 8]			(10,100	)		—			(10,100	)		—
Income (loss) before income taxes and non-controlling interest and discontinued operations				(8,578	)		206,411			79,744			137,469
	Income taxes [Note 4]			10,788			(487	)		26,278			(487	)
Income (loss) before non-controlling interest and discontinued operations				(19,366	)		206,898			53,466			137,956
Non-controlling interest				10,341			10,363			16,898			40,352
Income (loss) from continuing operations				(9,025	)		217,261			70,364			178,308
Loss from discontinued operations				(32,269	)		(33,383	)		(161,901	)		(363,909	)
Net income (loss)				(41,294	)		183,878			(91,537	)		(185,601	)
	Deficit, beginning of period as previously reported			(1,178,518	)		(1,227,543	)		(1,126,015	)		(858,602	)
		Adjustment [Note 11]		—			—			—			14,863
		As restated		(1,178,518	)		(1,227,543	)		(1,126,015	)		(843,739	)
	Interest paid in shares on convertible debentures			—			—			—			(11,625	)
	Accretion of equity component of convertible debentures			—			(7,133	)		(2,260	)		(9,833	)
Deficit, end of period				(1,219,812	)		(1,050,798	)		(1,219,812	)		(1,050,798	)
	Basic earnings (loss) per share
		From continuing operations		(0.02	)		12.87			0.16			9.66
		From discontinued operations		(0.06	)		(2.04	)		(0.37	)		(22.40	)
		Net income (loss)		(0.08	)		10.83			(0.21	)		(12.74	)
	Diluted earnings (loss) per share
		From continuing operations		(0.02	)		3.26			0.16			4.79
		From discontinued operations		(0.06	)		(0.50	)		(0.37	)		(9.74	)
		Net income (loss)		(0.08	)		2.76			(0.21	)		(4.95	)

See accompanying Notes

TELESYSTEM INTERNATIONAL WIRELESS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) [Note 1]

(in thousands of U.S. dollars)

		Three months ended						Nine months ended
		September 30,						September 30,
		2002			2001			2002			2001
		$			$			$			$
					[Restated, Note 11]						[Restated, Note 11]
OPERATING ACTIVITIES
	Income (loss) from continuing operations		(9,025	)		217,261			70,364			178,308
	Depreciation and amortization		40,750			31,165			110,201			87,020
	Non-cash interest on long-term debt		2,122			12,344			20,916			41,527
	Non-controlling interest		(10,341	)		(10,363	)		(16,898	)		(40,352	)
	Gain (loss) on reorganization, Units exchange and expiry and on investments		—			8,592			(91,127	)		6,011
	Gain on forgiveness of debt		—			(238,940	)		—			(238,940	)
	Other non-cash items		834			(6,991	)		(3,210	)		4,358
	Changes in operating assets and liabilities		3,988			38,864			(4,352	)		(71,970	)
Cash provided by (used in) operating activities			28,328			51,932			85,894			(34,038	)
INVESTING ACTIVITIES
	Acquisitions of property, plant and equipment		(58,963	)		(74,208	)		(166,448	)		(143,535	)
	Increase of ownership in subsidiaries		—			—			—			(23,239	)
	Other investments and advances		—			(2,571	)		489			4,954
Cash used in investing activities			(58,963	)		(76,779	)		(165,959	)		(161,820	)
FINANCING ACTIVITIES
	Increase in (repayment of) short-term loans		(10,000	)		30,540			(19,911	)		(23,960	)
	Proceeds from units issued, net of issue costs		—			—			—			248,591
	Proceeds from shares issued, net of issue costs		—			—			—			667
	Proceeds from recapitalization, net of costs [Note 3]		—			—			41,202			—
	Proceeds from subsidiary’s shares issued to non-controlling interest		—			14,769			29,930			50,303
	Subsidiary’s dividends paid to non-controlling interest		(5,636	)		—			(9,806	)		—
	Proceeds from long-term debt		275,223			59,762			303,150			85,142
	Repayment of long-term debt		(226,117	)		(3,939	)		(250,556	)		(6,818	)
	Deferred financing costs		(7,482	)		—			(7,790	)		—
	Payments made in notes exchange, including fees and costs		—			(55,838	)		—			(55,838	)
	Additions to cash and cash equivalents — restricted		—			(91,581	)		—			(91,581	)
Cash provided by (used in) financing activities			25,988			(46,287	)		86,219			206,506
Net effect of exchange rate translation on cash and cash equivalents			(1,118	)		1,971			1,142			(959	)
Cash provided by (used in) continuing operations			(5,765	)		(69,163	)		7,296			9,689
Cash used in discontinued operations			(1,671	)		(20,139	)		(5,827	)		(78,118	)
Increase (decrease) in cash and cash equivalents			(7,436	)		(89,302	)		1,469			(68,429	)
	Cash and cash equivalents, beginning of period		94,365			151,548			85,460			130,675
Cash and cash equivalents, end of period			86,929			62,246			86,929			62,246

TELESYSTEM INTERNATIONAL WIRELESS INC.

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

As at September 30, 2002
(in thousands of U.S. dollars)

NOTE 1
BASIS OF PRESENTATION AND GOING CONCERN UNCERTAINTY

These unaudited consolidated interim financial statements have been prepared in accordance with Canadian generally accepted accounting principles for interim financial statements and are based upon accounting policies and methods consistent with those used and described in the annual financial statements, with the exception of the change in the Canadian accounting policies mentioned in Note 2. These interim financial statements do not comply in all respects to the requirements of generally accepted accounting principles for annual financial statements. These financial statements should be read in conjunction with the most recent annual financial statements. In the opinion of management, all adjustments necessary for a fair presentation have been included. The consolidated balance sheet as at December 31, 2001, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements.

As at September 30, 2002, due to the maturity of its corporate credit facility on December 15, 2002, the committed cash obligations of the Company for the upcoming twelve months exceed the committed sources of funds and the Company’s cash and cash equivalents on hand. In addition, it will be necessary for the Company to comply with covenants to have access to its financing arrangements according to the terms of the related agreements. As previously reported, there is significant uncertainty as to whether the Company will have the ability to continue as a going concern. The Company continues to review opportunities to refinance or amend the terms of its corporate credit facility, raise new financing and sell assets. [See Note 7].

The consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the ordinary course of business. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company not be successful in its efforts to refinance or amend the terms of its corporate credit facility, raise new financing and sell assets.

NOTE 2
CHANGE IN CANADIAN ACCOUNTING POLICIES

Effective January 1, 2002, the Company adopted CICA 3870 Stock-based compensation and other stock based payments. As permitted by CICA 3870 the Company has applied this change prospectively for new awards granted on or after January 1, 2002. The Company has chosen to recognize no compensation when stock options are granted to employees and directors under stock options with no cash settlement features. The fair value of stock options is determined using the Black Scholes option pricing model. In periods prior to January 1, 2002, the Company recognized no compensation when stock or stock options were issued to employees. Pro forma information regarding net income is required and has been determined as if the Company has accounted for its employee stock options under the fair value method. The fair value for these options was estimated at the date of granting using a Black-Scholes Option Pricing Model with the following assumptions for 2002: weighted-average risk-free interest rates of 5.0%; dividend yields of 0%; weighted-average volatility factors of the expected market price of the Company’s Subordinated Voting Shares of 40.0%; and a weighted-average expected life of the options of 5 years.

TELESYSTEM INTERNATIONAL WIRELESS INC.

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

As at September 30, 2002

(in thousands of U.S. dollars)

NOTE 2

CHANGE IN CANADIAN ACCOUNTING POLICIES (CONT’D)

For purposes of pro forma disclosures, the estimated fair value of the options is amortized to expense over the options’ vesting periods. The Company’s pro forma net loss under Canadian GAAP would be increased by $2.6 million for the nine months ended September 30, 2002, considering all options issued since the beginning of the plans and would not have changed basic and diluted earnings-per-share figures.

In the first quarter of fiscal 2002, the Company adopted the standard in Section 3062, Goodwill and Other Intangible Assets, of the Canadian Institute of Chartered Accountants Handbook, to be applied prospectively. Under the new standard, goodwill is no longer amortized but tested for impairment on an annual basis and the excess of the carrying amount over the fair value of goodwill is charged to earnings.

The following table reconciles the reported net income and adjusted net income excluding amortization of goodwill:

		Three months ended					Nine months ended
		September 30,					September 30,
		2002			2001		2002			2001
		$			$		$			$
					[Restated, Note 11]					[Restated, Note 11]
Reported net income (loss)			(41,294	)		183,878		(91,537	)		(185,601	)
Amortization of goodwill from continuing operations			—			700		—			1,907
Amortization of goodwill from discontinued operations			—			1,900		—			5,945
Adjusted net income (loss)			(41,294	)		186,478		(91,537	)		(177,749	)
Adjusted earnings (loss) per share
	Basic		(0.08	)		10.98		(0.21	)		(12.26	)
	Fully diluted		(0.08	)		2.80		(0.21	)		(4.74	)

NOTE 3

RECAPITALIZATION

During the first quarter of 2002, the Company completed several transactions contemplated by an agreement between Telesystem Ltd., then the Company’s largest shareholder, and certain of the Company’s other stakeholders (“the Agreement”), as described in Note 18 to its 2001 annual financial statements.

As a result of this recapitalization, the Company recognized in the first quarter of 2002 a gain of $1.5 million on the redemption of 7% Equity Subordinated Debentures and a gain of $46.1 million on the exchange of Units. The Unit exchange resulted is an increase in the Company’s equity interest and voting rights in ClearWave from 45.5% and 80.7% respectively, to 85.6% and 94.9%, respectively.

On May 17, 2002, and following shareholders’ approval, the Company amended the terms of the Employee Stock Option Plan as described in Note 18 to the 2001 financial statements. On the same date, a Performance Unit Plan became effective. Under the Performance Unit Plan, performance units have been issued to certain holders of options granted under the Employees’ Stock Option Plan.

TELESYSTEM INTERNATIONAL WIRELESS INC.

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

As at September 30, 2002
(in thousands of U.S. dollars)

NOTE 3
RECAPITALIZATION (CONT’D)

Performance units give right, upon a change of control of the Company, to the payment in cash of the difference between the then market price of the Subordinate Voting Shares of the Company and the threshold price of the performance units. An aggregate of 15.4 million performance units were issued to option holders at an average threshold price of US$1.50 or Cdn$2.38 per performance unit. For each option granted in the future under the Employees Stock Option Plan to a holder of performance units, one performance unit held by such holder will be cancelled. Following the grant of 15,430,000 performance units, no additional performance units are expected to be granted under the Performance Unit Plan.

On September 30, 2002, 18.7 million warrants issued in connection with the Company’s recapitalization plan expired. The carrying value of $0.9 million assigned to these warrants has been credited to additional paid-in-capital.

NOTE 4
INCOME TAXES

The Company has recorded an income tax expense of $26.3 million for the nine month periods ended September 30, 2002. This amount primarily relates to the Company’s operating subsidiary, MobiFon S.A., which has generated net income and has utilized all its net operating loss carryforwards.

NOTE 5
FOREIGN CURRENCY

The increase in the cumulative translation adjustment account of $86.1 million net of minority interest, reported as a component of shareholders’ equity, as compared to December 31, 2001 is mainly explained by the appreciation of the Czech Koruna during the period of $3.1 million, less $34.7 million related to the devaluation of the Brazilian real during the period ended June 30, 2002 and the realization of the cumulative translation adjustment losses related to Brazil of $118.5 million during the second quarter of 2002 [see Note 10]. The exchange rate was 35.587 Czech Koruna for one US dollar and 30.769 Czech Koruna for one US dollar as at December 31, 2001 and September 30, 2002, respectively. The exchange rate for the Brazilian real was 2.310 for one US dollar and 2.817 for one US dollar as at December 31, 2001 and September 30, 2002, respectively.

As at June 30, 2002, the cumulative translation adjustment included as a component of shareholders’ equity included a translation adjustment of $19.9 million attributable to non-controlling interest. This misclassification had no impact on net income and has been adjusted in the preparation of these financial statements for the period ended September 30, 2002.

In addition, to manage a portion of its Euro based borrowing exposure, the Company’s operating subsidiary Ceský mobil a.s., entered into a six-month Euro to Koruna cross currency swap arrangement for €60.0 million ($59.2 million) on May 11, 2002. The change in fair value of this instrument, amounting to $1.0 million, is included in current liabilities and this unrealized loss has been reflected in income against the change in carrying value of the related debt of €60.0 million.

NOTE 6
DISTRIBUTION FROM MOBIFON S.A. (“MOBIFON”)

During the quarter, MobiFon paid $15.5 million to its shareholders, representing the second installment of a $27.6 million dividend declared in March of this year. The final installment of $0.6 million was paid in October 2002. The Company has used a portion of the proceeds to repay $10.0 million of its senior credit facility and to fulfill its funding commitments in its operating subsidiary, Ceský Mobil a.s.

TELESYSTEM INTERNATIONAL WIRELESS INC.

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

As at September 30, 2002
(in thousands of U.S. dollars)

NOTE 6
DISTRIBUTION FROM MOBIFON S.A. (“MOBIFON”) (CONT’D)

On October 30, 2002, the shareholders of MobiFon approved further distributions of up to $38.8 million by means of a share repurchase. Shareholders can tender their shares between October 30, 2002 and June 30, 2003 in order to realize their pro-rata share of this distribution amount of which ClearWave’s share is $24.6 million. A first distribution of $16.6 million was paid on October 30, 2002, of which $15.8 million was paid to ClearWave. MobiFon’s shareholders are expected, but not required, to participate pro-rata in the share repurchase. Accordingly, the Company’s ultimate ownership of MobiFon may vary between 53.4% and 54.8%, throughout the tender period, depending on the timing and the extent of each shareholder’s participation in the repurchase.

NOTE 7
CORPORATE CREDIT FACILITY

As a result of the repayment described above, the amount available and outstanding on the corporate credit facility expiring December 15, 2002, is now $63.5 million. Under the terms of the facility, any amount received by the Company and flowing from dividends paid by its Central and Eastern European operations, other than amounts representing operational and investment requirements of the Company and ClearWave to December 15, 2002, will be used to further reduce the amount outstanding on the corporate facility. The Company is currently in discussions with the syndicate of lenders to extend the terms of its corporate facility beyond its December 15, 2002 stated maturity. There is no certainty the lenders will agree to such extension. The facility is secured by substantially all assets of the Company.

NOTE 8
LONG-TERM CREDIT FACILITY IN MOBIFON

On August 27, 2002, MobiFon closed a $300 million senior loan facility. This new facility is composed of two tranches. Tranche I consists of a term loan of $238 million, fully drawn as at September 30, 2002, for which the proceeds were used to repay the interest and principal balance of the syndicated senior credit facilities entered into in 1997 and 1999. Tranche II consists of a term loan of up to $62 million of which $17 million was drawn as at September 30, 2002. Each tranche is repayable in quarterly installments starting in January 2004 and maturing in October 2008. The interest rate on the facility is LIBOR + 3.5% up to December 31, 2003. Thereafter, the interest rate will range from LIBOR + 2.5% to LIBOR + 4.0% depending on certain financial ratios, including debt and capital ratios. As permitted by the loan agreement, the LIBOR portion of the interest rates on $87.3 million of Tranche I and $6.2 million of Tranche II have been fixed at 3.64% and 3.52%, respectively. In October 2002, MobiFon also entered into interest rate swap arrangements on notional principal amounts of $100 million and $30 million whereby the LIBOR portion of the interest on the related loan principal has been effectively fixed at 3.6% and 3.7%, respectively. During the nine-month period ended September 30, 2002, MobiFon has deferred financing costs in the amount of $7.8 million relating to the new senior facility. Under the facility, MobiFon must comply with certain affirmative covenants such as the maintenance of certain financial covenants and ratios, including debt and capital ratios.

The facility also contains customary negative covenants and mandatory prepayment provisions which, among other things, limit MobiFon’s ability to create liens, dispose of assets or make distributions not provided for by the facility. The facility allows for distributions of cash provided from operations net of capital expenditures and scheduled debt service subject to MobiFon meeting certain financial ratios and maintaining minimum cash balances. To the extent such ratios are not met, a portion or all of these cash flows may be required to be used for mandatory prepayments of the facility. The facility is collateralized by a pledge of the Company’s and of the minority interests’ shares in MobiFon and by substantially all of the assets of MobiFon.

TELESYSTEM INTERNATIONAL WIRELESS INC.

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

As at September 30, 2002

(in thousands of U.S. dollars)

NOTE 8

LONG-TERM CREDIT FACILITY IN MOBIFON (cont’d)

In connection with the early extinguishment of the syndicated senior credit facilities, unamortized deferred financing costs in the amount of $5.2 million and additional interest paid and cancellation fees totaling $4.9 million have been presented separately in the consolidated statement of income (loss) as expenses related to the extinguishment of debt due to their unusual nature.

NOTE 9

EARNINGS PER SHARE

The following is a reconciliation of the basic and fully diluted earnings per share computations:

	Three months ended							Nine months ended
	September 30,							September 30,
	2002			2001				2002			2001
	$			$				$			$
				[Restated			[Restated
				Note 11]							Note 11]
Numerator
Income (loss) from continuing operations		(9,025	)		217,261				70,364			178,308
Interest paid in shares on convertible debentures		—			—				—			(11,625	)
Accretion of equity component of convertible debentures		—			(7,133	)			(2,260	)		(9,833	)
Income (loss) from continuing operations — basic		(9,025	)		210,128				68,104			156,850
Effect of conversion of all debentures		—			7,299				—			22,153
Income from continuing operations — diluted					217,427							179,003
Net income (loss)		(41,294	)		183,878				(91,537	)		(185,601	)
Interest paid in shares on convertible debentures		—			—				—			(11,625	)
Accretion of equity component of convertible debentures		—			(7,133	)			(2,260	)		(9,833	)
Net income (loss) attributable to common shareholders		(41,294	)		176,745				(93,797	)		(207,059	)
Denominator
Weighted average number of common shares and share equivalent outstanding (in thousands)		502,172			16,327				439,143			16,243
Effect of conversion of all convertible debentures		—			41,153				—			11,930
Dilutive effect of Units		—			9,174				—			9,174
Weighted average number of common shares outstanding — diluted		—			66,654				—			37,347

NOTE 10

DISCONTINUED OPERATIONS

On March 5, 2002 the Company adopted a formal plan to dispose of its Brazilian cellular operations by way of a sale of its equity interest within the next twelve months. Subsequent to March 31, 2002, there has been a significant deterioration in the value of the Brazilian real relative to the U.S. dollar and in the trading value of shares of the Company’s Brazilian cellular operations and those of other wireless telecommunications companies in Brazil. In light of these sustained declines, the Company recorded in the second quarter a loss from discontinued operations of $129.6 million. Of this amount, $118.5 million consists of foreign exchange translation losses related to these investments of which $86.2 million were already recorded as a reduction of shareholders’ equity as of March 31, 2002.

TELESYSTEM INTERNATIONAL WIRELESS INC.

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

As at September 30, 2002
(in thousands of U.S. dollars)

NOTE 10
DISCONTINUED OPERATIONS (CONT’D)

During the third quarter, there has been a significant further deterioration in the value of the Brazilian real relative to the U.S. dollar. Consequently, the Company recorded in the third quarter a loss from discontinued operations of $32.3 million which substantially consists of foreign exchange translation losses related to these investments. The value of the Company’s discontinued Brazilian assets remains subject to periodic reassessments to the date of disposal.

Several legal proceedings related to the Company’s discontinued operations have been ongoing since July 2000 when the Company and other partners initiated legal proceedings in order to invalidate certain changes to the ownership structure of Telpart effected by one of the partners which, according to the Company and other partners, contravened the general telecommunications law and breached certain agreements. Although, the Company occupies one of three seats on Telpart’s Board of Directors, during the quarter, the Company ceased to have board representation at Telpart’s subsidiaries as a result of legal proceedings which the Company is vigorously contesting. The Company maintains that it has the legal right to joint control over these investments and is still pursuing legal proceedings to enforce this right but for which final judgments have not yet been issued. In light of these changes, the Company has ceased to proportionately account for these discontinued operations and accounts for its investment using the equity method.

NOTE 11
COMPARATIVE FIGURES

Certain comparative figures were restated to conform to the presentation adopted in this nine-month period ended September 30, 2002 interim consolidated financial statements, with respect to discontinued operations and a change in accounting policy regarding foreign currency translation as described in Note 3 to the 2001 annual financial statements.

TELESYSTEM INTERNATIONAL WIRELESS INC.

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

(in thousands of U.S. dollars)

NOTE 12

SEGMENTED INFORMATION FOR CONTINUING OPERATIONS

		FOR THE THREE MONTHS ENDED SEPTEMBER 30,
		2002										2001
												[Restated, Note 11]
				Czech			Corporate							Czech			Corporate
		Romania		Republic			and					Romania		Republic			and
		Cellular		Cellular			Other			Total		Cellular		Cellular			Other			Total
		$		$			$			$		$		$			$			$
Revenues
	Services		112,585		62,872			—			175,457		96,112		34,513			2,219			132,844
	Equipment		5,276		4,476			—			9,752		3,110		3,403			76			6,589
			117,861		67,348			—			185,209		99,222		37,916			2,295			139,433
Cost of services			21,031		31,853			—			52,884		18,743		23,940			1,012			43,695
Cost of equipment			9,106		5,910			—			15,016		6,331		3,813			124			10,268
Selling, general and administrative expenses			23,363		21,174			1,648			46,185		21,773		16,013			8,086			45,872
Operating income (loss) before depreciation and amortization			64,361		8,411			(1,648	)		71,124		52,375		(5,850	)		(6,927	)		39,598
Depreciation and amortization			21,404		19,307			39			40,750		19,445		11,191			529			31,165
Operating income (loss)			42,957		(10,896	)		(1,687	)		30,374		32,930		(17,041	)		(7,456	)		8,433
Acquisition of property, plant and equipment, including unpaid acquisitions			21,871		19,802			—			41,673		43,768		26,008			101			69,877

TELESYSTEM INTERNATIONAL WIRELESS INC.

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

(in thousands of U.S. dollars)

NOTE 12 (cont’d)

SEGMENTED INFORMATION FOR CONTINUING OPERATIONS

		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
		2002										2001
												[Restated, Note 11]
				Czech										Czech
		Romania		Republic			Corporate					Romania		Republic			Corporate
		Cellular		Cellular			and Other			Total		Cellular		Cellular			and Other			Total
		$		$			$			$		$		$			$			$
Revenues
	Services		311,510		159,074			—			470,584		260,696		82,588			7,250			350,534
	Equipment		15,342		12,066			—			27,408		8,292		9,378			312			17,982
			326,852		171,140			—			497,992		268,988		91,966			7,562			368,516
Cost of services			59,014		84,965			—			143,979		52,178		68,629			3,515			124,322
Cost of equipment			26,775		15,149			—			41,924		16,905		12,458			429			29,792
Selling, general and administrative expenses			68,224		58,120			6,578			132,922		60,953		46,894			22,725			130,572
Operating income (loss) before depreciation and amortization			172,839		12,906			(6,578	)		179,167		138,952		(36,015	)		(19,107	)		83,830
Depreciation and amortization			62,734		47,347			120			110,201		55,027		30,480			1,513			87,020
Operating income (loss)			110,105		(34,441	)		(6,698	)		68,966		83,925		(66,495	)		(20,620	)		(3,190	)
Acquisition of property, plant and equipment, including unpaid acquisitions			59,363		70,092			57			129,512		91,637		47,466			172			139,275
Property, plant and equipment, licenses and goodwill as at September 30, 2002 and December 31, 2001			534,279		585,045			743			1,120,067		537,739		483,604			845			1,022,188
Total assets of continuing operations as at September 30, 2002 and December 31, 2001			669,052		628,514			51,995			1,349,561		648,946		542,159			63,471			1,254,576

TELESYSTEM INTERNATIONAL WIRELESS INC.

THIRD QUARTER 2002
 

SUPPLEMENTARY INFORMATION

TELESYSTEM INTERNATIONAL WIRELESS INC.

RESULTS FROM CONTINUING OPERATIONS BY BUSINESS SEGMENT — PROPORTIONATE (UNAUDITED)⁽¹⁾

(in thousands of U.S. dollars)

		FOR THE THREE MONTHS ENDED SEPTEMBER 30,
		2002										2001
				Czech										Czech
		Romania		Republic			Corporate					Romania		Republic			Corporate
		Cellular		Cellular			and Other			Total		Cellular		Cellular			and Other			Total
		$		$			$			$		$		$			$			$
Revenues
	Services		61,235		12,228			—			73,463		27,763		3,427			2,219			33,409
	Equipment		2,870		871			—			3,741		899		338			76			1,313
			64,105		13,099			—			77,204		28,662		3,765			2,295			34,722
Cost of services			11,439		6,195			—			17,634		5,414		2,377			1,012			8,803
Cost of equipment			4,953		1,150			—			6,103		1,829		379			124			2,332
Selling, general and administrative expenses			12,707		4,050			1,649			18,406		6,289		1,210			8,086			15,585
Operating income (loss) before depreciation and amortization			35,006		1,704			(1,649	)		35,061		15,130		(201	)		(6,927	)		8,002
Depreciation and amortization			11,642		3,756			39			15,437		5,777		1,111			529			7,417
Operating income (loss)			23,364		(2,052	)		(1,688	)		19,624		9,353		(1,312	)		(7,456	)		585

(1) Proportionate financial figures represent the combination of TIW’s ultimate proportionate ownership in each of its investees and is not intended to represent any measure of performance in accordance with generally accepted accounting principles

TELESYSTEM INTERNATIONAL WIRELESS INC.

RESULTS FROM CONTINUING OPERATIONS BY BUSINESS SEGMENT — PROPORTIONATE (UNAUDITED)⁽¹⁾

(in thousands of U.S. dollars)

		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
		2002										2001
				Czech			Corporate							Czech			Corporate
		Romania		Republic			and					Romania		Republic			and
		Cellular		Cellular			Other			Total		Cellular		Cellular			Other			Total
		$		$			$			$		$		$			$			$
Revenues
	Services		169,431		31,114			—			200,545		74,317		8,127			7,250			89,694
	Equipment		8,345		2,360			—			10,705		2,364		924			312			3,600
			177,776		33,474			—			211,250		76,681		9,051			7,562			93,294
Cost of services			32,098		16,620			—			48,718		14,867		6,766			3,515			25,148
Cost of equipment			14,563		2,963			—			17,526		4,818		1,227			429			6,474
Selling, general and administrative expenses			37,120		11,303			6,579			55,002		17,368		2,651			22,725			42,744
Operating income (loss) before depreciation and amortization			93,995		2,588			(6,579	)		90,004		39,628		(1,593	)		(19,107	)		18,928
Depreciation and amortization			34,225		9,257			120			43,602		16,146		2,997			1,513			20,656
Operating income (loss)			59,770		(6,669	)		(6,699	)		46,402		23,482		(4,590	)		(20,620	)		(1,728	)

(1) Proportionate financial figures represent the combination of TIW’s ultimate proportionate ownership in each of its investees and is not intended to represent any measure of performance in accordance with generally accepted accounting principles

TELESYSTEM INTERNATIONAL WIRELESS INC.

TIW’S NET DEBT POSITION AS AT SEPTEMBER 30, 2002 AND OTHER DATA (UNAUDITED)

(in thousands of U.S. dollars)

		Investee Level
											TIW’s Net Debt
		Paid-in						Net
		Capital		Debt		Cash		Debt			Consolidated			Proportionate
		$		$		$		$			$			$
Investees
Central & Eastern Europe
	MobiFon		270,556		267,700		58,094		209,606			209,606			113,933
	TIW Czech		4,587		—		322		(322	)		(322	)		(67	)
	Ceský Mobil		362,207		422,528		211		422,137			422,317			83,521
	Corporate(1)		21,467		—		226		(226	)		(226	)		(193	)
												631,375			197,194
Other			54,027		—		7		(7	)		(7	)		(7	)
Total Investees												631,368			197,187
Corporate			1,302,784		287,275		28,069		259,206			259,206			259,406
Total												890,574			456,593

(1) Excludes inter-company demand loans

OUTSTANDING SHARE DATA AS AT OCTOBER 31, 2002

The following represents all equity shares outstanding and the number of Subordinate Voting Shares into which all securities are convertible, exercisable or exchangeable:

		Subordinate
		Voting Share
Subordinate Voting Shares outstanding			467,171,780
Preferred Shares outstanding			35,000,000
Convertible instruments and other
	Outstanding granted employees and directors’ stock options		32,170,826
	Warrants		15,819,253
	Units		—
	Convertible Equity Subordinated Debentures		281,023
			550,442,882