Ÿ PROFIT AND LOSS ACCOUNT, AS OF 31 DECEMBER 1998 IN THOUSANDS CZK 1998 1997 1996 1995 Revenues from goods sold 464 620 411 358 327 191 268 661 Cost of sales 214 116 189 171 139 819 118 446 Gross margin 250 504 222 187 187 372 150 215 Operations   9 867 970   9 015 495   7 842 137   7 366 773 Revenues from own products and services 9 833 816 9 005 111 7 825 655 7 360 609 Change in inventory of own production 7 525 2 127 -7 1 954 Capitalised costs 26 629 8 257 16 489 4 210 Operations consumption 6 369 377 6 365 319 7 374 704 6 779 569 Consumption of materials and energy 1 480 123 1 666 533 1 557 026 1 297 409 Services 4 889 254 4 698 786 5 817 678 5 482 160 Value added 3 749 097 2 872 363 654 805 737 419 Personnel expenses 1 199 618 1 048 336 934 406 808 425 Wages and salaries 860 014 757 329 680 005 586 095 Remuneration of company bodies and cooperative members 1 920 Social insurance 223 467 196 721 176 743 153 579 Statutory social expenses 114 217 94 286 77 658 68 751 Taxes and fees 23 965 61 250 65 186 57 990 Depreciation of tangible and intangible fixed assets 246 821 272 283 276 392 268 040 Revenues from sales of fixed assets and materials 64 983 251 517 266 733 156 591 Net book-value of fixed assets and materials sold 75 116 185 275 219 449 129 484 Accounting of reserves and accruals to operating revenues 97 603 134 211 195 464 128 225 Additions to reserves and accruals to operating expenses 394 818 187 050 250 352 221 217 Accounting for adjustments to operating revenues 7 381 22 727 63 589 9 070 Accounting for adjustments to operating expenses 9 655 27 805 99 851 Other operating revenues 1 480 392 1 022 085 767 453 615 047 Other operating expenses 2 964 113 2 484 463 446 940 457 179 Operating profit (loss) 485 350 36 441 -244 681 -395 834 Revenues from financial investments 5 309 3 304 89 Revenues from other financial investments 5 309 3 304 89 Accounting for reserves to financial revenues 248 3 433 1 826 8 262 Addition to provisions for financial expenses 26 120 17 954 2 104 Interest received 60 468 28 601 24 959 19 200 Interest paid 53 498 29 570 27 372 33 231 Other financial revenues 227 493 492 592 206 648 323 347 Other financial expenses 328 389 489 396 171 208 182 940 Profit (loss) from financial operations -114 489 8 964 16 899 132 623 Income tax on ordinary activities -5 454 2 535 10 475 5 657 due 7 736 deferred -5 454 2 535 2 739 5 657 Profit (loss) from ordinary activities 376 315 42 870 -238 257 -268 868 Extraordinary revenues 59 276 25 001 67 721 110 078 Extraordinary expenses 22 040 -21 458 36 437 -425 156 Extraordinary profit (loss) 37 236 46 459 31 284 535 234 Profit (loss) of the current accounting period 413 551 89 329 -206 973 266 366 Profit (loss) before tax 408 097 91 864 -196 498 272 023

Ÿ BALANCE SHEET, AS OF 31 DECEMBER 1998 IN THOUSANDS CZK 1998 1998 1998 1997 1996 1995 ASSETS GROSS ADJUSTED NET NET NET NET Total assets 9 930 228 2 032 201 7 898 027 6 814 742 5 396 750 4 731 449 Fixed assets   5 456 714   1 889 963   3 566 751   3 233 774   2 429 889   1 988 034 Intangible fixed assets 89 622 59 794 29 828 36 590 43 325 40 130 Software 70 368 47 378 22 990 31 060 38 848 34 716 Other intangible fixed assets 12 416 12 416 Intangibles in progress 3 829 3 829 3 660 3 144 4 345 Advances for intangibles 3 009 3 009 1 870 1 333 1 069 Tangible fixed assets 5 346 217 1 830 169 3 516 048 3 172 743 2 368 811 1 921 445 Land 38 003 38 003 38 004 38 004 38 004 Buildings, halls and constructions 581 864 199 250 382 614 351 677 327 004 261 108 Independent movables and groups thereof 2 240 556 1 554 296 686 260 721 380 750 832 833 084 Other tangible fixed assets 98 907 76 623 22 284 303 302 303 Tangibles in progress 342 697 342 697 238 810 136 518 162 552 Advances for tangibles 2 044 190 2 044 190 1 822 569 1 116 151 626 394 Financial investments 20 875 20 875 24 441 17 753 26 459 Shares and investments in companies with controlling influence 1 665 1 665 1 669 1 480 1 380 Other securities and deposits 2 134 2 134 2 055 104 104 Other financial investments 17 076 17 076 20 717 16 169 24 975 Current assets 3 126 403 142 238 2 984 165 2 249 271 1 908 848 1 622 781 Inventory 430 361 53 792 376 569 362 908 320 887 296 173 Materials 369 951 53 792 316 159 319 369 279 764 270 793 Work in progress and semi-finished products 13 070 13 070 5 543 3 417 3 424 Goods 47 340 47 340 37 996 37 706 21 956 Long-term receivables 69 334 69 334 66 502 38 522 5 644 Trade receivables 69 334 69 334 66 502 38 522 5 644 Receivables from partners and associations Receivables from companies with controlling influence Receivables from companies with substantial influence Other receivables Short-term receivables 1 148 085 88 446 1 059 639 955 106 702 563 660 107 Trade receivables 821 063 88 145 732 918 687 311 644 193 585 712 Receivables from partners and associations Social security receivables Tax receivables 290 928 290 928 245 285 51 010 71 956 Deferred taxes Receivables from companies with controlling influence 1 100 1 300 Receivables from companies with substantial influence Other recivables 36 094 301 35 793 22 510 6 260 1 139 Financial assets 1 478 623 1 478 623 864 755 846 876 660 857 Cash 286 798 286 798 204 655 435 107 169 437 Bank accounts 1 191 825 1 191 825 660 100 411 769 491 420 Short-term financial assets Other assets - temporary accounts 1 347 111 1 347 111 1 331 697 1 058 013 1 120 634 Deferrals and accruals 1 347 111 1 347 111 1 331 697 1 057 989 1 120 722 Deferred expenses 1 271 442 1 271 442 963 052 1 005 748 710 026 Accrued revenues 56 255 56 255 66 390 48 813 408 874 Foreign currency exchange rate losses 19 414 19 414 302 255 3 428 1 822 Estimated receivables 24 -88

Ÿ BOALANCE SHEET, AS OF 31 DECEMBER 1998 IN THOUSANDS CZK 1998 1997 1996 1995 LIABILITIES Total liabilities 7 898 027 6 814 742 5 396 750 4 731 449 Equity 1 789 962 1 376 408 1 287 048 1 493 971 Registered capital 2 735 510 2 735 510 2 735 510 2 735 510 Registered capital 2 735 510 2 735 510 2 735 510 2 735 510 Own shares Capital funds 27 537 27 537 560 299 560 248 Share premium 532 793 532 793 Other capital funds 27 537 27 537 27 506 27 455 Gains or losses from revaluation of assets Gains or losses from investments Funds created from net profit 4 467 167 127 153 809 Legal reserve fund 4 467 167 127 153 809 Indivisible fund Statutory and other funds Profit (loss) of previous years   -1 391 103   -1 475 968   -1 968 915   -2 221 962 Retained earnings from previous years Accumulated loss from previous years -1 391 103 -1 475 968 -1 968 915 -2 221 962 Profit (loss) of current period 413 551 89 329 -206 973 266 366 Not-own capital 3 880 393 3 232 675 2 272 995 1 743 682 Reserves 970 512 647 426 598 020 541 714 Legal reserves 830 963 624 848 579 813 532 910 Reserve for foreign exchange losses reserve 3 428 1 822 Other reserves 139 549 22 578 14 779 6 982 Long-term liabilities 572 670 572 670 572 670 5 80 294 Liabilities to companies with controlling influence Liabilities to companies with significant influence Long-term advances received Bonds issued Long-term bills of exchange to be paid 10 294 Other long-term liabilities 572 670 572 670 572 670 5 70 000 Short-term liabilities 994 411 948 250 597 307 565 674 Trade liabilities 771 202 808 418 520 063 515 965 Liabilities to partners and associations Liabilities to employees 49 047 33 013 25 347 3 541 Social security liabilities 37 923 30 171 27 089 Tax liabilities 103 990 43 168 75 24 146 Deferred tax liability 21 814 27 268 24 733 21 994 Liabilities to companies with controlling influence Liabilities to companies with significant influence Other liabilities 10 435 6 212 28 Bank loans and short terms notes 1 342 800 1 064 329 504 998 56 000 Long-term bank loans 1 090 125 883 079 93 431 56 000 Short term bank loans 252 675 181 250 411 567 Short-term notes Other liabilities - temporary accounts 2 227 672 2 205 659 1 836 707 1 493 796 Accruals and deferrals 1 682 354 1 734 499 1 283 785 955 625 Accrued expenses 884 031 719 279 769 768 505 265 Deferred revenues 661 727 633 395 506 609 448 653 Foreign currency exchange gains 136 596 381 825 7 408 1 707 Estimated payables 545 318 471 160 552 922 538 171

Ÿ FINANCIAL RESULTS Ÿ ACCORDING TO INTERNATIONAL STANDARDS (IAS)

Ÿ PROFIT AND LOSS STATEMENT, AS OF 31 DECEMBER 1998 IN MILLIONS CZK 1998 1997 1996 1995 Traffic revenues 10 306 9 419 8 153 7 631 Other operating income 1 681 1 209 935 881 Total turnover   11 987   10 628   9 088   8 512 Cost of materials and services -7 495 -7 273 -6 513 -6 152 Staff costs -1 200 -1 048 -935 -808 Depreciation and amortisation -1 146 -952 -789 -730 Other operating charges -565 -528 -512 -509 Operating profit (loss) 1 581 827 339 313 Other income net -43 148 159 164 Interest and financial charges net -665 -665 -569 -593 Foreign exchange differences 1 286 -1 780 -171 324 Profit (loss) before tax 2 159 -1 470 -242 208 Tax on profit -7 16 Profit (loss) 2 159 -1470 -249 224 Ÿ BALANCE SHEET, AS OF 31 DECEMBER 1998 IN MILLIONS CZK 1998 1997 1996 1995 Fixed assets   12 870   12 289   8 595   8 021 Intangible fixed assets 30 37 43 40 Tangible fixed assets 12 819 12 228 8 534 7 954 Financial investments 21 24 18 27 Current assets 3 116 2 570 2 234 2 117 Inventories 377 366 328 272 Accounts receivable and prepayments 1 260 1 339 1 059 1 184 Bank balances and cash on hand 1 479 865 847 661 Current liabilities 4 002 3 910 -3 242 -2 385 Net current liabilities -886 -1 340 -1 008 -268 Total assets less current liabilities 11 984 10 949 7 587 7 753 Non-current liabilities -9 180 -8 688 -5 796 -5 760 Provisions for liabilities and charges -903 -624 -580 -533 Total assets 1 901 1 637 1 211 1 460 Total shareholders' equity 1 901 1 637 1 211 1 460 Share capital 2 736 2 736 2 736 2 736 Accumulated losses and reserves -835 -1 099 -1 525 -1 276