~~Table~~SECURITIES ofAND ~~Contents~~EXCHANGE COMMISSION

~~SECURITIES~~Washington, ~~AND~~D.C. ~~EXCHANGE~~20549 ~~COMMISSION~~

~~Washington,~~FORM ~~D.C.~~6-K ~~20549~~

~~FORM~~Report ~~6-K~~of Foreign Issuer

~~Report~~Pursuant ofto ~~Foreign~~Rule ~~Issuer~~ 13a or 15d—16 of

~~Pursuant~~the toSecurities Exchange ~~Rule~~Act ~~13a or 15d–16~~ of 1934

Slovak Statutory Company Financial Statements for the ~~Securities Exchange~~year ~~Act~~ended ofDecember ~~1934~~31, 2001

~~For~~EuroTel ~~the quarterly period ended June 30~~Bratislava, ~~2002~~ a.s.

~~EuroTel~~(Exact ~~Bratislava,~~name ~~a.s.~~of co-registrant and parent guarantor as specified in its Articles of Association)

~~(Exact~~Vajnorska ~~name~~100/A ~~of co-registrant and parent guarantor as specified in its Articles of Association)~~

~~Vajnorska~~831 ~~100/A~~03 Bratislava

~~831~~Slovak 03Republic ~~Bratislava~~

~~Slovak~~(Address ~~Republic~~of principal executive offices)

~~(Address~~Indicate ofby ~~principal~~check ~~executive~~mark ~~offices)~~whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F x Form 40-F ¨

Indicate by check mark whether the registrant ~~files~~by orfurnishing ~~will~~the information ~~file~~contained ~~annual~~in ~~reports~~this ~~under~~Form ~~cover~~is ~~Form~~also ~~20-F or~~thereby ~~Form~~furnishing 40the information to the Commission pursuant to Rule 12g3-F2(b) under the Securities Exchange Act of 1934. Yes ¨ No x

~~Form~~If ~~20-F x Form~~“Yes” 40is marked, indicate below the file number assigned to the registrant in connection with rule 12g3-~~F ¨~~2(b):82 N/A

~~Indicate~~[PricewaterhouseCoopers byLetterhead] check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No x

If[Logo] ~~“Yes” is marked, indicate below the file number assigned to the registrant in connection with rule 12g3-2(b):82 N/A~~

~~Table~~REPORT ofOF ~~Contents~~INDEPENDENT AUDITORS

~~INDEX~~To the shareholders of EuroTel Bratislava, a.s.:

		Page
PART I — Financial Information		3
ITEM 1.	Condensed Consolidated Financial Statements	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Cash Flows	5
	Consolidated Statements of Changes in Shareholders’ Equity	6
	Notes to the Condensed Consolidated Financial Statements	7
ITEM 2.	Management’s Discussion and Analysis of Results of Operations and Financial Condition	20
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	33
PART II — Other Information		35
ITEM 1.	Legal Proceedings	35
ITEM 2.	Changes in Securities and Use of Proceeds	35
ITEM 3.	Defaults upon Senior Securities	35
ITEM 4.	Submission of Matters to Vote of Security Holders	35
ITEM 5.	Other Information	35
ITEM 6.	Exhibits and Reports on Form 8-K	35

1. We have audited the accompanying financial statements of EuroTel Bratislava, a.s. for the year ended 31 December 2001. Our audit has been carried out in accordance with the Act of the National Council of the Slovak Republic No. 73/1992 Coll. on Auditors and the Slovak Chamber of Auditors as amended by the Acts of the National Council of the Slovak Republic No. 249/1994 Coll., No. 272/1996 Coll. and No. 228/2000 Coll, with Slovak auditing guidelines issued by the Slovak Chamber of Auditors and with International Standards on Auditing.

2. The Board of directors of the Company is responsible for the preparation of the financial statements and for maintaining accounting records that are complete, supportable and accurate in accordance with relevant laws of the Slovak Republic. Our responsibility is to express an opinion on these financial statements based on the results of our audit.

~~Table~~3. Our audit was planned and performed so as to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examination, on a test basis, of ~~Contents~~evidence supporting the amounts and disclosures in the financial statements. An audit also includes an assessment of the accounting principles applied and significant estimates made by the Company’s management, and an evaluation of the overall presentation of those financial statements. Based on our audit, nothing has come to our attention that causes us to believe that the underlying accounting records of the Company have not been maintained, in all material respects, in accordance with the Accounting Act. We believe that our audit provides a reasonable basis for our opinion.

4. In our opinion, the accompanying financial statements present fairly, in all material respects, the assets, liabilities, equity and the financial position of EuroTel Bratislava, a.s. at 31 December 2001 and the results of its operations for the year then ended in accordance with the Accounting Act of the Slovak Republic.

~~Part~~Bratislava, I1 ~~— Financial~~March ~~Information~~2002

Item 1: Condensed Consolidated Financial Statements

PricewaterhouseCoopers Slovensko, s.r.o.		Ing. Mária Frühwaldová
SKAU licence No.: 161		SKAU Decree No.: 047

~~Consolidated~~VAT ~~Balance~~Reg. ~~Sheets~~No. of PricewaterhouseCoopers Slovensko, s.r.o. (DIČ) 35739347/600

~~(in~~Spoločnost’ ~~thousands~~je ofzapísaná ~~Slovak~~v ~~Crowns)~~Obchodnom ~~(unaudited)~~registri Okresného súdu Bratislava 1, pod vložkou č 16611/B.

		As of December 31,		As of June 30,
	Notes	2001		2002
ASSETS
Non-current assets
Property and equipment		5,565,548		5,591,335
Licenses	2	675,350		640,418
Deferred expenses		27,183		23,173
		6,268,081		6,254,926
Current assets
Inventories	4	260,769		153,947
Receivables, prepayments and deferred expenses		1,108,857		1,258,802
Investments	5	3,671,380		3,157,428
Cash and cash equivalents		954,363		1,599,458
		5,995,369		6,169,635
Total assets		12,263,450		12,424,561
LIABILITIES AND EQUITY
Shareholders’ equity
Share capital		3,734,735		3,734,735
Accumulated deficit		(148,288	)	(21,293	)
	6	3,586,447		3,713,442
Non-current liabilities
Long term notes		6,577,558		6,844,096
Deferred revenues		27,183		23,173
Deferred tax liability	3	40,629		73,889
		6,645,370		6,941,158
Current liabilities
Trade, other payables and deferred revenues		1,797,539		1,569,073
Accrued interest – long term notes		197,094		198,888
Provisions		37,000		2,000
		2,031,633		1,769,961
Total liabilities and equity		12,263,450		12,424,561

The company is registered in the Commercial Register of Bratislava 1 District Court, ref. No. 16611/B.

~~The~~CLIENT: ~~accompanying~~EuroTel ~~notes~~Bratislava, ~~form an integral part of these consolidated financial statements~~a.s.

3SLOVAK STANDARD FORMAT

~~Table~~BALANCE ofSHEET ~~Contents~~AS AT 31 DECEMBER 2001

EuroTel Bratislava, a.s.

				Current Period
				Gross Value	Adjustments	Net value	Prior year
Section			Line	Sk ‘000	Sk ‘000	Sk ‘000	Sk ‘000
		TOTAL ACTIVE ACCOUNTS (line 02+03+28+55)	1	19,530,099	6,521,388	13,008,711	12,838,442

A		Receivables for subscribed share capital	2	0	0	0	0

B		Fixed assets (line 04+12+22)	3	12,281,885	5,683,429	6,598,456	5,562,319

BI		Intangible fixed assets (line 05 to 11)	4	3,203,383	2,299,634	903,749	959,827
	1	Start-up (incorporation) expenses	5	0	0	0	0
	2	Intangible results of research and development	6	0	0	0	0
	3	Software	7	1,808,761	1,486,135	322,626	490,382
	4	Licences, know-how, copyright and other valuable rights	8	1,053,214	792,400	260,814	397,829
	5	Other intangible assets	9	26,622	21,099	5,523	4,264
	6	Uncompleted intangible fixed assets	10	314,786	0	314,786	67,352
	7	Advance payments on account of intangible fixed assets	11	0	0	0	0

BII		Tangible fixed assets (line 13 to 21)	12	8,403,907	3,383,795	5,020,112	4,601,678
	1	Land	13	148	0	148	148
	2	Buildings, production halls and structures	14	98,071	42,268	55,803	66,297
	3	Machines, equipment, transport vehicles, furniture, fixtures, fittings	15	7,571,664	3,290,680	4,280,984	4,229,355
	4	Permanent crop stands	16	0	0	0	0
	4	Livestock and draught animals	17	0	0	0	0
	6	Other tangible fixed assets	18	71,713	50,847	20,866	8,858
	7	Uncompleted tangible fixed assets	19	599,298	0	599,298	277,674
	8	Advance payments on account of tangible fixed assets	20	63,013	0	63,013	19,346
	9	Correction item to acquired assets	21	0	0	0	0

BIII		Financial investments (line 23 to 27)	22	674,595	0	674,595	814
	1	Investments in enterprises with a majority interest (over 50%)	23	791	0	791	814
	2	Investments in enterprises with significant interest (20%-50%)	24	0	0	0	0
	3	Other investments, shares and securities	25	0	0	0	0
	4	Loans to enterprises in the group	26	0	0	0	0
	5	Other financial investments and loans	27	673,804	0	673,804	0

C		Current assets (line 29+36+42+51)	28	6,521,171	837,959	5,683,212	5,813,784

CI		Inventories (line 30 to 35)	29	280,036	19,174	260,862	137,129
	1	Material	30	84,344	6,250	78,094	55,692
	2	Work-in-progress and semi-finished goods	31	0	0	0	0
	3	Finished goods	32	0	0	0	0
	4	Livestock	33	0	0	0	0
	5	Goods (for resale)	34	195,692	12,924	182,768	81,437
	6	Advance payments on account of inventories	35	0	0	0	0

CII		Long term receivables (line 37 to 41)	36	4,187	0	4,187	3,532
	1	Trade accounts receivables	37	4,187	0	4,187	3,532
	2	Receivables from shareholders, partners and consortium members	38	0	0	0	0
	3	Receivables from enterprises with a majority interest (over 50%)	39	0	0	0	0
	4	Receivables from enterprises with significant interest (20%-50%)	40	0	0	0	0
	5	Other long term receivables	41	0	0	0	0

CIII		Short term receivables (line 43 to 50)	42	1,615,275	818,785	796,490	642,187
	1	Trade accounts receivable	43	1,598,753	818,785	779,968	627,165
	2	Receivables from shareholders, partners and consortium members	44	1,100	0	1,100	1,100
	3	Social security	45	0	0	0	0
	4	State: Tax receivable	46	15,039	0	15,039	13,108
	5	State: Deferred tax	47	0	0	0	0
	6	Receivables from enterprises with majority interest (over 50%)	48	0	0	0	0
	7	Receivables from enterprises with significant interest (20%-50%)	49	0	0	0	0
	8	Other short term receivables	50	383	0	383	814

CIV		Financial assets (line 52 to 54)	51	4,621,673	0	4,621,673	5,030,936
	1	Cash in hand	52	4,166	0	4,166	6,671
	2	Bank accounts	53	940,217	0	940,217	1,470,672
	3	Short term financial assets	54	3,677,290	0	3,677,290	3,553,593

D		Other assets—temporary accounts of assets (line 56 to 60)	55	727,043	0	727,043	1,462,339

DI		Accruals, prepaid expenses (line 57 to 59)	56	599,323	0	599,323	1,375,985
	1	Prepaid expenses	57	387,017	0	387,017	433,222
	2	Accrued income	58	0	0	0	0
	3	Exchange rate differences (unrealised losses)	59	212,306	0	212,306	942,763
DII		Estimated receivables	60	127,720	0	127,720	86,354

~~Consolidated~~BALANCE ~~Statements~~SHEET ofAS ~~Operations~~AT Period 1

(in thousands of Slovak Crowns) (unaudited)

				Current year	Prior year
Section		Item	Line	Sk'000	Sk'000
		TOTAL PASSIVE ACCOUNTS (line 62+79+105)	61	13,008,711	12,838,442

A		Equity (line 63+66+71+75+78)	62	2,751,282	-676,962

AI		Base capital (line 64+65)	63	3,733,700	937,700
	1	Base capital	64	3,733,700	937,700
	2	Own shares	65	0	0

AII		Capital funds (line 67 to 70)	66	1,036	1,036
	1	Share premium	67	0	0
	2	Other capital funds	68	1,036	1,036
	3	Revaluation differential for assets	69	0	0
	4	Revaluation differential for investments	70	0	0

AIII		Funds from profit (line 72+73+74)	71	49,622	49,622
	1	Reserve fund	72	49,622	49,622
	2	Non-distributable fund	73	0	0
	3	Statutory and other funds	74	0	0

AIV		Profit (loss) brought forward from previous years (line 76+77)	75	-1,665,320	-570,004
	1	Retained profit from previous years	76	0	0
	2	Loss brought forward from previous years	77	-1,665,320	-570,004

AV		Profit (loss) for the current year	78	632,244	-1,095,316

B		Liabilities (line 80+84+91+101)	79	9,153,484	12,276,323

BI		Reserves, provisions (line 81+82+83)	80	319,109	964,386
	1	Legal reserves (tax deductible)	81	0	0
	2	Reserve (provision) for exchange rate losses	82	212,306	942,763
	3	Other reserves (provisions)	83	106,803	21,623

BII		Long term liabilities (line 85 to 90)	84	7,483,080	10,282,091
	1	Liabilities to enterprises with a majority interest (over 50%)	85	7,483,000	7,699,300
	2	Liabilities to enterprises with significant interest (20%-50%)	86	80	2,582,791
	3	Long term advances received	87	0	0
	4	Bonds issued	88	0	0
	5	Long term bills of exchange payable	89	0	0
	6	Other long term liabilities	90	0	0

BIII		Short term liabilities (line 92 to 100)	91	1,351,295	1,029,846
	1	Trade accounts payable	92	791,883	575,587
	2	Payables to shareholders, partners and consortium participants	93	0	0
	3	Payables to employees	94	22,767	18,116
	4	Social security payables	95	11,421	9,314
	5	State: Taxes payable and subsidies	96	6,834	32,241
	6	State: Deferred tax liability	97	515,655	392,449
	7	Payables to enterprises with majority interest (50%—100%)	98	0	0
	8	Payables to enterprises with significant interest (20%-50%)	99	0	0
	9	Other payables	100	2,735	2,139

BIV		Bank and other loans (line 102 to 104)	101	0	0
	1	Bank loans long term	102	0	0
	2	Bank loans current	103	0	0
	3	Other	104	0	0

C		Other liabilities—temporary accounts of liabilities (line 106+110)	105	1,103,945	1,239,081

CI		Accruals (line 107 to 109)	106	276,992	188,225
	1	Accrued expenses	107	0	0
	2	Deferred income	108	275,198	187,290
	3	Exchange rate differential (unrealised gains)	109	1,794	935

CII		Estimated payables	110	826,953	1,050,856

		Three months ended June 30,				Six months ended June 30,
	Notes	2001		2002		2001		2002
Revenues	7	1,876,523		2,189,221		3,638,121		4,277,048
Cost of sales and services	8	(828,173	)	(887,600	)	(1,521,324	)	(1,908,124	)
Gross profit		1,048,350		1,301,621		2,116,797		2,368,924
Operating expenses	9	(801,595	)	(884,878	)	(1,531,136	)	(1,766,688	)
Operating profit		246,755		416,743		585,661		602,236
Finance costs	10	(72,700	)	(327,759	)	(204,473	)	(422,985	)
Income before tax		174,055		88,984		381,188		179,251
Income taxes	11	(77,501	)	(34,920	)	(146,219	)	(52,256	)
Net income		96,554		54,064		234,969		126,995

Signature of a statutory representative:	Person responsible for bookeeping:	Person responsible for financial statements:

Jozef Barta JUDr. Ján Pitonák	Ivan Bošňák	Adriana Jonásová

~~The~~CLIENT: EuroTel ~~accompanying~~Bratislava, ~~notes form an integral part of these consolidated financial statements~~a.s.

4SLOVAK STANDARD FORMAT

~~Table~~PROFIT ofAND ~~Contents~~LOSS ACCOUNT FOR THE PERIOD ENDED 31 DECEMBER 2001

EuroTel Bratislava, a.s.

			Current year	Prior year
Section	Item	Line	Sk'000	Sk'000
I	Sale of goods (purchased for resale)	1	784,965	383,418
A	Cost of goods (purchased for resale)	2	1,500,954	796,696

	Gross Margin (trading) (line 01-02)	3	-715,989	-413,278

II	Production (line 05+06+07)	4	7,173,775	5,527,485
	1 Sale of own manufacture goods and services	5	7,122,570	5,495,049
	2 Change in inventories of work in progress
	Semi-finished and finished goods	6	0	0
	3 Own work capitalised	7	51,205	32,436

B	Consumption (line 09+10)	8	3,337,122	2,867,725
	1 Material and energy consumed in production	9	301,068	159,706
	2 Cost of services	10	3,036,054	2,708,019

	Value added (line 03+04-08)	11	3,120,664	2,246,482

C	Personnel costs (line 13 to 16)	12	518,959	428,818
	1 Wages and salaries	13	403,164	328,406
	2 Remuneration of members of the board of companies and co-operatives	14	0	0
	3 Social security	15	99,413	88,757
	4 Social (= employee welfare) costs	16	16,382	11,655

D	Taxes (road tax, property tax, other direct taxes)	17	8,734	8,455

E	Depreciation of fixed assets	18	1,518,827	1,380,681

III	Revenue from sale of fixed assets and materials	19	4,636	3,305
F	Book value of fixed assets and materials sold	20	1,487	1,879

IV	Release of reserves (provisions), aggregated prepaid expenses	21	281,106	210,758
G	Creation of reserves (provisions), aggregated prepaid expenses	22	366,286	219,700

V	Release of adjusting items (provisions): operating	23	280,951	647,050
H	Creation of adjusting items (provisions): operating	24	331,338	720,658

VI	Other operating earnings	25	214,967	123,782
I	Other operating costs	26	93,079	60,409

VII	Transfer of operating earnings to financial or extraordinary	27	0	0
J	Transfer of operating costs to financial or extraordinary	28	0	0

*	Operating profit (loss) (line 11-12-17-18+19-20+21-22+23-24+25-26+(-27)-(-28))	29	1,063,614	410,777

~~Condensed~~PROFIT ~~Consolidated~~AND ~~Statements~~LOSS ofACCOUNT ~~Cash~~FOR ~~Flows~~THE PERIOD ENDED Period 1

(in thousands of Slovak Crowns) (unaudited)

Section		Item	Line	Current year	Prior year
Section		Item	Line	Sk’000	Sk’000
VIII		Revenue from sale of securities and shares	30	0	0
K		Book value of securities and shares sold	31	0	0

IX		Income from investments (line 33+34+35)	32	16,685	0
IX	1	Income from investments in companies in a group	33	0	0
	2	Income from other investments (shares, participating interests)	34	0	0
	3	Income from other financial investments	35	16,685	0

X		Income from short term financial assets	36	160,410	49,384

XI		Release of reserves (provisions) related to financial items	37	942,774	240,699
L		Creation of reserves (provisions) related to financial items	38	212,317	942,763

XII		Release of adjusting items related to financial items	39	0	0
M		Creation of adjusting items related to financial items	40	0	0

XIII		Interest income	41	67,522	122,415
N		Interest charge	42	914,281	1,047,369

XIV		Other financial earnings	43	305,831	734,796
O		Other financial costs	44	706,588	403,106

XV		Transfer of financial earnings to operating or extraordinary	45	0	0

P		Transfer of financial costs to operating or extraordinary	46	0	0
		Profit (loss) from financial activities (line 30-31+32+36+37-38+39-40+41-42+43-44+(-45)-(-46))	47	-339,964	-1,245,944

R		Tax on income from ordinary activities (line 49+50)	48	133,356	237,460
R	1	—Payable	49	10,150	18,154
	2	—Deferred	50	123,206	219,306
*		Tax on income from ordinary activities (line 48 )	51	133,356	237,460

**		Profit (loss) from ordinary activities (line 29+47-51)	52	590,294	-1,072,627

XVI		Extraordinary income	53	67,139	4,484
S		Extraordinary expense	54	25,189	27,173

T		Tax on income from extraordinary activities (line 56+57)	55	0	0
	1	—Payable / on investment income	56	0	0
	2	—Deferred	57	0	0

		Extraordinary profit (loss) (line 53-54-55)	58	41,950	-22,689
U		Profit (loss) share transferred to the owners’ account	59	0	0

		Profit (loss) for the accounting period after tax (line 52+58-59)	60	632,244	-1,095,316

		Profit (loss) for the accounting period before tax (line 29+47+53-54)	61	765,600	-857,856
Signature of a statutory representative:			Person responsible for bookeeping:		Person responsible for financial statements:

Jozef Barta		JUDr. Ján Pitoňák	Ivan Bošňák		Adriana Jonásová

	Six months ended June 30,
	CASH FLOW STATEMENT for the year ended 31 December 2001		Current period		Prior year
	2001			2002
	EuroTel Bratislava, a.s.
Cash flows from operations	1,256,823			1,369,325
A	Cashflow from operating activities
Interest paid	(429,178	)		(375,948	)
Z	Profit		723,650		0
Interest received	89,481			98,374
S	Loss		0		-835,166
Income tax received / (paid)	(5,257	)		(2,710	)
A.1.	Non-cash transactions included in profit from ordinary activities		1,703,195		2,081,541
Net cash flows from operating activities	911,869			1,089,041
A.2.	Working capital changes		-501,621		-3,752,152
Cash flows from investing activities
A.3.	Interest expense [+]		914,281		1,047,369
Purchase of property and equipment	(648,284	)		(1,057,462	)
A.4.	Interest income [-]		-227,932		-122,415
Purchase of licenses	—			—
A*	Profit before tax from ordinary activities adjusted for non-cash transactions, changes in working capital, interest income and expense (total Z. or S. + A.1.+ A.2.+ A.3.+ A.4.)		2,611,573		-1,580,823
Purchase of investments	(2,403,399	)		(1,794,586	)
A.5.	Items excluded from operating activities.		-3,149		-1,426
Proceeds from disposal of property and equipment	669			9,817
A.6.	Specific items		-3,149		-49,582
Proceeds from disposal of investments	2,229,517			2,398,285
A**	Cashflow before optionally reported and other items included in operating activities (total A* + A.5. + A.6.)		2,605,275		-1,631,831
Net cash used in investing activities	(821,497	)		(443,946	)
A.7.	Optionally reported items		219,106		0
Cash flows from financing activities	—			—
A.8.	Other items belonging to operating activities and not included above		0		0
Net cash flows from financing activities	—			—
A***	Net cashflow from operating activities (total A** + A.7. + A.8.)		2,824,381		-1,631,831
Net (decrease) / increase in cash and cash equivalents	90,372			645,095
B.	Cash from from investing activities
Cash and cash equivalents at beginning of period	1,483,765			954,363
B.1.	Capital expenditure (total B.1.1. Až B.1.3 or. B.1.4.)		-1,818,009		-770,215
Cash and cash equivalents at end of period	1,574,137			1,599,458
B.2.	Receipt from sale of fixed assets (total B.2.1. to B.2.3)		4,636		3,305
B.3.	Cashflow from rental of a set of movable and immovable property rented out as a unit (total B.3.1. and B.3.2.)		0		0
B.4.	Cashflow from loans given to / received from related parties (total B.4.1. and B.4.2.)		0		0
B.5.	Specific items (total B.5.1. to B.5.3)		0		0
B.6.	Optionally reported items (total B.6.1. to B.6.6)		0		0
B.7.	Other cashflows from investing activities not reported above [+,-]		593		0
B***	Net cashflow from investing activities		-1,812,780		-766,910
C.	Net cashflow from operating and investing activities (total A*+B*)		1,011,601		-2,398,741
D.	Cashflow from financing activities
D.1.	Increase/Decrease in non-current and current liabilities (total D.1.1. to D.1.7.)		-687,088		3,817,357
D.2.	Cashflow from equity transactions (total D.2.1. to D.2.6.)		0		0
D.3.	Specific items (total D.3.1. to D.3.3.)		0		0
D.4.	Optionally reported items		-857,473		-445,014
D.5.	Other items included in cashflow from financing activities not included above [+,-]		0		0
D***	Net cashflow from financing activities (total D.1. to D.5.)		-1,544,561		3,372,343
E.	Foreign exchange losses charged to income statement (total E.1. + E.2.)		0		0
E.1.	Foreign exchange gains (account 663) (+)		0		0
E.2.	Foreign exchange losses (account 563) (-)		0		0
F.	Increase/decrease in cash and cash equivalents [+,-] (total A*+B+D**+E.=(H.-G.)		-532,960		973,602
G.	Cash and cash equivalents at the beginning of the accounting period (at 1.1.)		1,477,343		503,741
H.	Cash and cash equivalents at the end of the accounting period (at 31.12.) (G.+ A*+B+D**+E.)		944,383		1,477,343

~~The~~EuroTel ~~accompanying~~Bratislava, ~~notes form an integral part of these consolidated financial statements~~a.s.

5Notes to the Financial Statements

~~Table~~For ofthe ~~Contents~~year ended 31 December 2001

~~EuroTel~~1 GENERAL ~~Bratislava, a.s.~~

~~Consolidated~~a) ~~Statements~~EuroTel ofBratislava, ~~Changes~~a.s. (“the Company”), was established and incorporated in ~~Shareholders~~the Commercial Register on 16 December 1996. The Company’s ~~Equity~~address is Vajnorská 100/A, 831 03 Bratislava; its ICO (Corporate identification number) is 35 705 019.

~~(in~~b) ~~thousands~~According ofto ~~Slovak~~the ~~Crowns)~~extract ~~(unaudited)~~from the Commercial Register, the Company’s main business activities are the following:

	Ordinary Shares	Share Premium	Preferred Shares	Retained Earnings / (Accumulated Deficit)		Total
Balance as of December 31, 2000	765,470	1,035	172,230	(642,112	)	296,623
Capitalization of shareholder loans (See Note 6)	2,796,000	—	—	—		2,796,000
Capitalization of shareholder loans—adjustment due to effect of blend of exchange rates and tax planning	—	—	—	186,680		186,680
(See Note 6)
Net income for the six months ended June 30, 2001	—	—	—	234,969		234,969
Balance as of June 30, 2001	3,561,470	1,035	172,230	(220,463	)	3,514,272
Balance as of December 31, 2001	3,561,470	1,035	172,230	(148,288	)	3,586,447
Net income for the six months ended June 30, 2002	—	—	—	126,995		126,995
Balance as of June 30, 2002	3,561,470	1,035	172,230	(21,293	)	3,713,442

•

Implementation and operation of public mobile cellular network using the frequencies assigned by the Licence from the Telecommunications Council of the Slovak Republic

~~The~~• ~~accompanying~~Provision ~~notes~~of ~~form~~related ~~an integral~~telecommunications ~~part~~services ofthrough ~~these~~the ~~consolidated~~public ~~financial~~mobile ~~statements.~~cellular network mentioned above

6• Implementation and operation of public data network with packet communications

~~Table~~• Provision of ~~Contents~~public data service through public telecommunications networks

~~EuroTel~~• ~~Bratislava,~~Assembly ~~a.s.~~and maintenance of telecommunications devices connected to the public telephone switchboard network

~~Notes~~• toPurchase of goods for the ~~Condensed~~purposes ~~Consolidated~~of ~~Financial~~their ~~Statements~~sale to other trade licence holders

(• Consultancy in ~~thousands~~the area of ~~Slovak~~public ~~Crowns)~~mobile ~~(unaudited)~~cellular radiotelephone networks

~~1. Basis~~• Consultancy in the area of ~~Preparation~~public packets-switched network for data transfer

~~These~~• ~~consolidated~~Editing ~~financial~~activities—editing ~~statements have been prepared in accordance with and comply with International Accounting Standards (“IAS”). The financial statements do not form the statutory accounts~~ of ~~EuroTel~~technical ~~Bratislava, a.s. (“EuroTel”), which are prepared separately in accordance with Slovak law and accounting practice.~~ magazines

~~The~~c) ~~consolidated~~Composition ~~financial~~of ~~statements~~the ~~and~~Board ~~accompanying~~of ~~notes~~Directors ~~have~~as ~~been~~at ~~presented~~31 inDecember ~~thousands of Slovak Crowns.~~ 2001:

InName ~~the~~Position ~~opinion~~Ladislav ofMikuš ~~management,~~Chairman ~~the~~Rahul accompanying financial statements of EuroTel contain all adjustments necessary to present fairly, in all material respects, EuroTel’s consolidated financial position as of June 30, 2002, and the results of operations and cash flows for the three and six months ended June 30, 2002 and June 30, 2001N. ~~All~~Saxena ~~such~~Vice-chairman ~~adjustments~~Michael ~~are~~Gunther ~~deemed~~Member toFridbert beGerlach ofMember aRobert ~~normal recurring nature~~L. ~~The~~Lewis financial statements should be read in conjunction with the financial statements and the related notes included in EuroTel’s financial statements as of December 31, 2001 and 2000 and for each of the years then ended. The results of operations for the three and six months ended June 30, 2002 are not necessarily indicative of the results to be expected for the full year. Member

~~2. Licenses~~d) Composition of Supervisory Board as at 31 December 2001:

~~EuroTel~~Name ~~reports~~Position ~~intangible~~Jozef ~~assets~~Pavlík atChairman ~~cost~~Pavol ~~less accumulated~~Gašpar ~~amortization.~~Secretary Mark von Lillienskiold Member Farshid Ebrahimi-Ghajar Member Beáta Lacíková Member Frederic Lyman Wohl Member

	As of December 31, 2001		As of June 30, 2002
General license	1,053,149		1,053,149
Less: accumulated amortization	(377,799	)	(412,731	)
	675,350		640,418

1 of 23

~~The~~EuroTel ~~general license is valid until 2011~~Bratislava, ~~at which point EuroTel has the option to renew the license for up to an additional ten years~~a.s.

~~3. Deferred~~Notes ~~Taxes~~to the Financial Statements

~~Deferred~~For ~~taxes are calculated in full on temporary differences under~~ the ~~liability~~year ~~method~~ended ~~using~~31 ~~a principal tax rate of 25%. On~~ December 4, 2001 ~~the Slovak corporate tax rate changed from 29% to 25% effective from January 1, 2002.~~

~~The movement~~1 GENERAL on(continued) ~~the deferred tax account is as follows:~~

	As of December 31, 2001		As of June 30, 2002
At beginning of year—net deferred tax asset / (liability)	223,715		(40,629	)
Income statement charge	(188,095	)	(33,260	)
Tax charged to equity (Note 6)	(76,249	)	—
At end of period—net deferred tax liability	(40,629	)	(73,889	)

Structure of shareholders as at 31 December 2001:

The deferred tax charge to equity in 2001 was recorded in relation to capitalization of shareholder loans. This transaction is further described in Note 6.

Name	Amount of stake in the registered share capital
	Nominal amount	Percentage
Slovenské telekomunikácie, a.s. (“ST”)	1,988,580	53.26%
Atlantic West, B.V. (“AWBV”)	1,745,121	46.74%

7The Company is a joint venture between Slovenské telekomunikácie, a.s. and AWBV. Control is exercised jointly as a result of a shareholders agreement.

~~Table~~f) Several group entities have interest in the Company. Consolidated financial statements for the largest group of ~~Contents~~companies have been prepared by Deutsche Telekom AG, AT&T Wireless Services, Inc. and Verizon Communications. Consolidated financial statements for the smallest group of companies have been prepared by Slovenské telekomunikácie, a.s., nám. Slobody 1, Bratislava. The consolidated financial statements are available at Slovenské telekomunikácie, a.s., nám. Slobody 1, Bratislava.

~~EuroTel~~g) ~~Bratislava,~~The aaverage number of staff in 2001 came to 869 (31 December 2000: 841).s. Of that number, 103 were management (31 December 2000: 94).

Notes to the Condensed Consolidated Financial Statements

	Average staff number in 2001	Total personnel costs (SKK ’000 )	Wages (SKK ’000)	Remuneration of the members of statutory bodies (SKK ’000)		Social security costs (SKK ’000)	Social costs (SKK ’000)
				former	present
Employees total	869	518,959	385,322	1,404	16,438	99,413	16,382
Management	103	99,307	65,318	1,404	16,438	14,733	2,149

~~(in~~h) ~~thousands~~An extraordinary General Meeting on 10 July 2001 approved the 2000 financial statements of ~~Slovak~~the ~~Crowns)~~Company ~~(unaudited)~~and the proposal for accounting treatment of the Company’s accounting loss for the year 2000.

~~3. Deferred~~2 ~~Taxes~~of ~~(continued)~~23

~~Deferred~~EuroTel ~~tax assets are recognized for tax loss carry forwards to the extent that realization of the related tax benefit through the future taxable profits is probable. Tax loss carryforwards as of June 30~~Bratislava, ~~2002 of Sk1,459,700 represent tax losses accumulated over the years ended December 31, 1999, 2000 and 2001 less~~ a ~~proportion of taxable profits for the six months ended June 30, 2002 that may, under Slovak tax law, be offset~~. ~~The tax losses carried forward are expected to be offset evenly against future taxable profits during 2002 through to 2006~~s. ~~The deferred tax asset related to the tax loss carryforwards was recognized on the basis of estimated future taxable profits of the Company within the relevant tax jurisdiction.~~

~~The~~Notes ~~movement in deferred tax assets and liabilities (prior~~ to ~~offsetting of balances within~~ the ~~same~~Financial Statements ~~tax jurisdiction) during the period is as follows:~~

Deferred tax liabilities	As of December 31, 2001		(Charged)/ Credited to Income Statement		As of June 30, 2002
Temporary differences arising from accelerated tax depreciation	(610,693	)	(85,648	)	(696,341	)
Deferred expenses	(19,580	)	5,140		(14,440	)
Deferred tax liabilities	(630,273	)	(80,508	)	(710,781	)

For the year ended 31 December 2001

Deferred tax assets	As of December 31, 2001	(Charged)/ Credited to Income Statement		As of June 30, 2002
Unrealized foreign exchange losses	53,075	61,116		114,191
Accrued interest	50,901	(1,179	)	49,722
Deferred revenues	19,580	(5,140	)	14,440
Other accruals	23,523	12,736		36,259
Bad debt provision for receivables (a)	—	26,276		26,276
Rent and exit costs	17,342	(429	)	16,913
Premium on long term notes repurchase and write-off of deferred finance charges (b)	14,493	(327	)	14,166
Tax losses carried forward	410,730	(45,805	)	364,925
Deferred tax assets	589,644	47,248		636,892

2 ACCOUNTING POLICIES AND GENERAL ACCOUNTING PRINCIPLES

(a) ~~Prior~~Principal toaccounting January 1, 2002 the Slovak tax law allowed the debtor to claim tax benefit only after certain statutory collection requirements were complied with. Due to significant practical difficulties in pursuing such statutory requirements it was EuroTel’s policy not to recognize deferred tax asset on its bad debt provision. The Amendment to the Income Taxes Act, effective from January 1, 2002, significantly relaxed the rules for tax benefit collection in relation to newly originated receivables. In accordance with the Amendment, 50% of the bad debt provision related to receivables due after December 31, 2001 becomes tax deductible after 2 years from the receivable due date and a tax benefit for further 25% of the receivable value can be claimed if the receivable is still unpaid after 36 months from the original due date. The deferred tax asset arising on the bad debt provision was recorded in the six months ended June 30, 2002 in relation to receivables within the scope of the Amendment.policies

~~(b)~~The ~~Deferred~~ordinary ~~tax~~financial ~~asset~~statements ofhave ~~Sk14,493 has~~ been ~~recognized~~prepared ason ~~of December 31, 2001 to account for timing differences between accounting and tax profits of EuroTel caused by repurchase, by EuroTel, of €15 million of its long term notes. Under IAS,~~ the ~~premium~~going ~~paid~~concern bybasis ~~EuroTel~~in ~~over~~accordance ~~the carrying value of repurchased notes together~~ with ~~unamortized~~Act ~~deferred~~563/1991 ~~finance charges related to the repurchased notes were charged to income~~Coll. ~~Under~~on ~~Slovak law~~Accounting, ~~for~~as ~~tax~~amended. ~~purposes,~~The ~~the~~principle ~~premium will become deductible on the date~~ of ~~maturity~~historical ofcosts ~~long~~has ~~term~~been ~~notes~~applied ~~and the deferred finance charges will continue~~ to ~~be amortized over~~ the ~~period~~valuation ~~until~~of ~~such date~~assets.

8b) Intangible assets

~~Table~~Purchased ofintangible ~~Contents~~assets are valued at acquisition costs, which include the acquisition price and related costs, including capitalised interest. As at 31 December 2001, the Company acquired no intangible assets as a gift and produced no intangible assets internally.

~~EuroTel~~Intangible ~~Bratislava,~~assets are depreciated over a period of up to five years from the acquisition of the asset.s.

~~Notes~~Intangible assets with an economic life exceeding one year and with an acquisition cost of SKK 40,000 or less are considered low-value intangible assets. The Company posts low-value intangible assets that have an acquisition price of SKK 5,000 or less to consumption when the ~~Condensed~~asset ~~Consolidated~~is ~~Financial~~put ~~Statements~~to use and keeps operational records of such assets. Low-value intangible assets with the acquisition price from SKK 5,001 to SKK 40,000 are depreciated using the straight-line depreciation method, according to their economic lives.

~~(in thousands of Slovak Crowns~~c) ~~(unaudited)~~Tangible fixed assets

3Purchased tangible fixed assets are valued at acquisition costs, which include the acquisition price, and related costs, including capitalised interest. ~~Deferred~~ ~~Taxes~~During the year 2001, the Company acquired no tangible fixed assets as a gift ~~(continued)~~and produced no tangible fixed assets internally.

~~Deferred~~Tangible ~~tax~~fixed assets ~~and liabilities~~ are ~~offset~~depreciated ~~when~~using ~~there is a legally enforceable right to set~~the ~~off~~straight-line ~~current~~depreciation ~~tax~~method ~~asset/liabilities~~based ~~and~~on ~~when~~their ~~the~~expected ~~deferred~~economic ~~taxes~~lives, ~~relate~~which toare ~~the~~as ~~same~~follows: ~~fiscal authority.~~

The following amounts, determined after appropriate offsetting, are shown in the consolidated balance sheet:

		Years
Buildings and structures		15
Machines and machinery		2-10
Other tangible fixed assets		3

		As of December 31, 2001			As of June 30, 2002
Deferred tax liability		(40,629	)		(73,889	)

As a result of differences between the depreciation for taxation and accounting purposes, the Company accounts for deferred tax.

~~The~~3 ~~amounts~~of ~~shown~~23 ~~in the balance sheet include the following:~~

	As of December 31, 2001		As of June 30, 2002
Deferred tax assets to be recovered after more than 12 months	414,599		451,201
Deferred tax liabilities to be settled after more than 12 months	(478,931	)	(489,011	)
	(64,332	)	(37,810	)

EuroTel Bratislava, a.s.

~~4. Inventories~~Notes to the Financial Statements

	As of December 31, 2001	As of June 30, 2002
Mobile
Mobile phones and accessories	195,633	119,846
SIM cards	60,271	30,050
	255,904	149,896
Managed Data Network Services (“MDNS”)
MDNS inventory	4,865	4,051
	260,769	153,947

For the year ended 31 December 2001

~~EuroTel~~2 ACCOUNTING ~~uses~~POLICIES anAND ~~aging~~GENERAL ~~analysis~~ACCOUNTING ~~of inventory that approximates the~~PRINCIPLES ~~amount that would have been provided for under specific identification; stock items with carrying value of Sk25,950 are carried at net realizable value~~ (~~Sk36,327 as of December 31, 2001~~continued). ~~Inventories are shown net of allowances of Sk19,269 and Sk11,330 as of December 31, 2001 and June 30, 2002, respectively.~~

9Tangible fixed assets with an economic life exceeding one year and with an acquisition cost of SKK 20,000 or less are considered low-value tangible fixed assets. The Company posts low-value tangible fixed assets with an acquisition price of SKK 5,000 or less to consumption when the asset is put to use and keeps operational records of such assets. Low-value tangible fixed assets with an acquisition price from SKK 5,001 to SKK 20,000 are depreciated fully when put to use, except for specific commodities, which are depreciated on the basis of their economic lives.

~~Table~~As ofat ~~Contents~~31 December 2001, The Company has made no provisions for tangible fixed assets.

~~EuroTel~~d) ~~Bratislava,~~Assets ~~a.s.~~leased under Finance leases

~~Notes~~The toCompany ~~the~~does ~~Condensed~~not ~~Consolidated~~have ~~Financial~~any ~~Statements~~assets leased under finance leases as at 31 December 2001.

~~(in thousands of Slovak Crowns~~e) ~~(unaudited)~~Financial investments

5Financial investments are carried at the acquisition price. ~~Investments~~ No provision was made for financial investments as at 31 December 2001.

~~EuroTel~~f) has invested in a portfolio of Euro denominated government bonds. The bonds mature in periods ranging from one to eight months from the balance sheet date. The bonds pay interest at fixed rates with effective interest rates ranging from 3.23% to 3.76%. As of December 31, 2001 and as of June 30, 2002 the fair value of the securities was Sk3,679,578 and Sk3,151,492 respectively. EuroTel has the intent and ability to hold all investments to maturity. Inventories

	As of December 31, 2001		As of June 30, 2002
Opening net book amount	3,559,842		3,671,380
Additions	4,604,154		1,794,586
Redemptions	(4,405,473	)	(2,398,285	)
Amortization of discount / (premium)	8,461		(13,416	)
Foreign exchange differences	(95,604	)	103,163
Closing net book amount	3,671,380		3,157,428

Inventories are carried at acquisition cost, reduced by the amount of provision. The acquisition cost includes the acquisition price and costs related to the acquisition (such as transport, commissions, custom duty and insurance). Inventories consist of purchased goods (mobile phones with accessories, routers, DPN and modems) for resale, spare parts (“SP”) for repairing mobile phones, SP for base stations and data centre components, SIM cards and stationery. Purchased goods and SP for repairing mobile phones are carried at the pre-set acquisition cost (“standard costs”), stating the variation from the actual acquisition cost and additional acquisition costs. Variations between the actual acquisition cost, standard costs and additional acquisition costs are expensed monthly, depending on the amount of goods sold.

6Stationery and SP for base stations and data centre components are carried at the acquisition cost and dispatched using the FIFO method. ~~Shareholders’~~ ~~Equity~~SIM cards are valued using a weighted average method.

~~Upon~~In ~~formation~~analytical ~~of EuroTel Bratislava~~records, ~~a.s.,~~the ~~two~~acquisition ~~classes~~cost ofis ~~shares~~split ~~were~~into ~~issued,~~the ~~ordinary~~acquisition ~~shares~~price and ~~non-redeemable~~the ~~preferred~~costs ~~shares~~relating ~~with discretionary~~to ~~dividends~~the acquisition. Valuation differences (“VD”) that occur as a result are expensed as follows:

On% ~~December 17, 1999, EuroTel’s shareholders approved an increase in both ordinary and preferred share capital by capitalizing shareholder loans with a carrying value~~ of ~~Sk334,400.~~VD As= a(opening ~~result,~~balance ~~the total number~~ of ~~ordinary~~VD ~~shares authorized, issued and outstanding at December 31, 2000 was 765,470, of which 390,390 and 375,080 were~~+ ~~issued~~addition to ~~Slovak Telecom (“ST”~~VD) ~~and~~/ ~~Atlantic West B.V.~~ (~~“AWBV”)~~opening ~~respectively.~~balance ~~The~~on ~~total~~the ~~number~~account of ~~preferred~~inventories ~~shares~~+ ~~authorized,~~addition ~~issued and outstanding at December 31, 2000 was 172,230, all of which were issued~~ to ~~ST.~~inventories)

OnVD ~~December~~= ~~19,~~actual ~~2000~~consumption ~~the~~x% ~~Board~~ of ~~Directors~~VD of EuroTel, including representatives of all shareholders, agreed to capitalize all outstanding shareholder loans and interest accrued thereon through December 31, 2000 with an aggregate value of Sk3,058,929 into ordinary share capital of the Company as of January 1, 2001. The agreement was scheduled at shareholders’ meeting of March 22, 2001. As a result of this transaction, the total number of ordinary shares authorized, issued and outstanding at December 31, 2001 was 3,561,470, of which 1,816,350 and 1,745,120 were issued to ST and AWBV respectively. The total number of authorized, issued and outstanding preferred shares remains 172,230, all of which are held by ST.

~~The capitalization~~Dispatch ~~was effected at a blend~~ of ~~exchange~~inventories ~~rates~~from instock ~~effect~~is ~~during~~valued ~~the~~at ~~loan~~carrying ~~periods~~values ~~giving~~of ~~rise~~dispatched toinventory ~~Sk186,680~~items. ~~increase~~In incase ~~equity (net~~ of ~~taxes~~temporary decrease of ~~Sk76~~inventory value,~~249).~~ ~~Under~~an ~~Slovak~~obsolete ~~law~~or ~~the~~slow-moving ~~increase~~inventories ~~can~~provision beis ~~distributed~~created to ~~shareholders~~reflect oftheir ~~the~~net ~~Company through~~realisable ~~dividends~~value. ~~Accordingly, the increase was credited to EuroTel’s retained earnings.~~

~~Each~~4 ~~class~~ of ~~shares~~ ~~has~~23 a nominal value of Sk1 per share and carries one vote per share. The preferred shares have the right to share in profits of EuroTel solely through the payment of a preferred dividend of one Slovak Crown per share prior to the payment of the dividend to the holders of ordinary shares. Ordinary shares carry the right to share equally in the profits of EuroTel through the payment of a dividend as and when declared. Share premiums represent the excess of each owner’s total initial capital contribution over their proportionate contribution to EuroTel’s registered capital prior to the transformation of EuroTel into a joint stock company.

EuroTel ~~cannot~~Bratislava, ~~make any dividend payment or other distribution unless certain criteria set forth in the indenture agreement are satisfied~~a.s.

10Notes to the Financial Statements

~~Table~~For ofthe ~~Contents~~year ended 31 December 2001

~~EuroTel~~2 ACCOUNTING ~~Bratislava,~~POLICIES ~~a.s.~~AND GENERAL ACCOUNTING PRINCIPLES (continued)

~~Notes~~g) toLong-term ~~the Condensed Consolidated Financial Statements~~ contracts

~~(in~~In ~~thousands~~the ofyear ~~Slovak~~2001, ~~Crowns)~~the ~~(unaudited)~~Company did not account for long-term contracts.

~~7. Revenues~~h) Accruals and prepayments

	Three months ended June 30,		Six months ended June 30,
	2001	2002	2001	2002
Mobile service revenues	1,540,216	1,923,981	2,979,971	3,684,524
Mobile equipment and other sales
Mobile equipment and accessories sales	152,689	89,819	278,953	246,139
Other revenues	67,189	57,643	147,542	114,202
	219,878	147,462	426,495	360,341
MDNS
MDNS service revenues	115,386	115,909	230,166	228,705
MDNS equipment revenues	1,043	1,869	1,489	3,478
	116,429	117,778	231,655	232,183
	1,876,523	2,189,221	3,638,121	4,277,048

Accruals and prepayments are carried at their nominal value, reduced by provisions for doubtful and bad debts and receivables from companies in bankruptcy.

~~Service~~i) ~~Revenues~~Financial assets

~~Total~~Financial ~~service revenues~~assets, which ~~exclude~~include ~~revenues~~cash, ~~from~~stamps, ~~the~~vouchers ~~sale~~and ofhigh-liquidity ~~mobile~~securities, ~~equipment~~are ~~and~~valued ~~MDNS~~at ~~equipment,~~their ~~were~~nominal values. No provision was made for financial assets as ~~follows:~~at 31 December 2001.

	Three months ended June 30,		Six months ended June 30,
	2001	2002	2001	2002
Service revenues	1,722,791	2,097,533	3,357,679	4,027,431

Accruals and deferred income

~~8. Cost~~Accruals ofand ~~Sales~~deferred ~~and~~income ~~Services~~are stated at their nominal value.

	Three months ended June 30,		Six months ended June 30,
	2001	2002	2001	2002
Mobile service cost of sales
Interconnect	232,586	358,877	454,321	668,009
Roaming	69,890	90,950	128,931	163,063
Leased circuits	58,676	59,940	114,491	125,229
License and other costs	27,126	39,933	41,540	82,638
	388,278	549,700	739,283	1,038,939
Mobile equipment and service commissions
Equipment, SIM cards, accessories and spare parts	359,778	268,685	632,119	703,327
Service commissions	42,499	31,859	75,646	92,797
	402,277	300,544	707,765	796,124
Managed data network services cost of sales
MDNS service cost of sales	36,957	36,256	73,625	70,873
MDNS equipment cost of sales	661	1,100	651	2,188
	37,618	37,356	74,276	73,061
	828,173	887,600	1,521,324	1,908,124

Reserves

~~Cost~~Reserves are carried at the amount necessary to cover the known amount of ~~Services~~risks or losses from the business activities.

~~Depreciation~~The Company creates reserves for specific purposes based on facts known at the time of their creation. These facts are statistically evaluated and ~~amortization~~used to estimate their future occurrence or development (the warranty reserve, the EuroTel Club reserve). Reserves are ~~not~~also ~~included~~created in ~~cost~~specific ofamounts ~~sales~~based ~~and~~on ~~services~~valid ~~but~~contractual ~~under~~relationships ~~operating~~for ~~expenses~~future periods (such as the contractual penalties reserve). ~~Total~~Reserves ~~service~~for ~~cost~~unrealised offoreign ~~goods~~exchange ~~sold,~~losses ~~which~~and ~~excludes~~for losses related to the ~~cost~~ownership of ~~mobile~~ ~~equipment~~short-term ~~and~~bonds ~~MDNS~~are ~~equipment~~also ~~sold,~~created ~~were~~in asspecific ~~follows:~~amounts.

	Three months ended June 30,		Six months ended June 30,
	2001	2002	2001	2002
Cost of services	467,734	617,815	888,554	1,202,609

The Company also creates general reserves on the basis of known risks or the evaluation of risks from business activities.

11l) Principles for the creation of provisions

~~Table~~Provisions for receivables are created for risky receivables that have been identified during stocktaking. The Company uses written communication with clients as well as a third party to verify the debtor’s financial situation to assess the risk of ~~Contents~~non-payment.

~~EuroTel~~When ~~Bratislava~~the Company takes stock, it places the receivable into a specific category based on the level of risk.s A provision is carried at the nominal value of the receivable multiplied by the percentage of the individual receivables categories.

~~Notes~~5 toof ~~the~~23 ~~Condensed Consolidated Financial Statements~~

~~(in~~EuroTel ~~thousands~~Bratislava, ofa.s. ~~Slovak Crowns) (unaudited)~~

9.Notes ~~Operating~~to ~~Expenses~~the Financial Statements

	Three months ended June 30,				Six months ended June 30,
	2001		2002		2001		2002
Advertising	121,265		94,640		188,788		188,542
Marketing and sales	11,213		8,408		16,151		16,833
Wages and employee benefits (a)	128,398		159,671		254,662		311,342
Building maintenance	10,745		16,665		20,803		34,094
Network support and maintenance	59,327		67,058		116,514		130,181
Motor vehicles expenses	8,363		9,485		17,365		17,767
Rent – base station sites	17,091		20,777		34,582		40,313
Rent – buildings	27,897		35,597		54,173		72,308
Employee training and travel	6,282		9,889		9,897		19,030
Office supplies	13,699		17,142		26,158		33,601
Professional fees and administrative costs	41,612		54,139		69,503		111,666
Bad debt expense	(2,480	)	12,120		17,111		19,698
Depreciation (b)	352,501		371,294		693,356		760,589
Amortization	17,466		17,466		34,932		34,932
Capitalized expenses (c)	(11,784	)	(9,473	)	(22,859	)	(24,208	)
	801,595		884,878		1,531,136		1,766,688

For the year ended 31 December 2001

~~(a)~~2 ACCOUNTING ~~Wages~~POLICIES ~~and~~AND ~~employee~~GENERAL ~~benefits~~ACCOUNTING ~~include Sk55,463 of contributions accrued to the statutory health, retirement benefit and unemployment schemes during the six months ended June 30, 2002~~ PRINCIPLES (~~Sk48,523 during the six months ended June 30, 2001~~continued) ~~and Sk26,722 accrued during the three months ended June 30, 2002 (Sk23,495 during the three months ended June 30, 2001).~~

~~(b)~~Inventory ~~Included~~provisions inare ~~the~~created ~~depreciation~~on ~~charge for~~ the ~~six~~basis ~~months ended June 30, 2002 is a one-time write-off~~ of ~~Sk24,091 representing~~ the ~~net~~prudence ~~book~~principle ~~value~~for ofobsolete ~~point-to-multipoint~~stock ~~system~~that is ~~(“PMP”)~~stored for ~~wireless~~an ~~connection~~extended ofperiod, ~~the~~where ~~GSM~~decreasing ~~base~~demand ~~stations~~is expected and ~~MDNS customers to MDNS network. Whereas Telecom Office of~~ the ~~Slovak~~price ~~Republic~~has ~~(“Telecom~~decreased ~~office”)~~due ~~opened~~to the ~~tender for new license for spectrum used by PMP equipment, EuroTel~~stock’s ~~management~~age. ~~decided~~This ~~not~~is toan ~~exercise~~indirect ~~this~~decrease ~~offer and ceased the usage~~ of ~~this~~inventory ~~equipment.~~value ~~PMP~~in ~~equipment~~the ~~was~~accounts ~~used~~based ~~69%~~on ~~for~~the ~~MDNS~~results ~~and~~of ~~31%~~the ~~for Mobile Communications Services business segment~~stocktaking.

~~(c)~~The ~~Capitalized~~inventory ~~expenses~~provision ~~include~~amount ~~labor~~is ~~and~~stated ~~overhead~~on ~~expenses~~the ~~associated~~basis ~~with~~of the ~~construction~~results of ~~fixed~~sales ~~assets~~for the previous period and an estimate of future sales of inventory items. This sales estimate is divided into specific time periods. A percentage is stated for each time period and for each item. The amount of the provision is calculated on this basis.

~~10. Finance~~m) ~~Costs~~ Revenues

	Three months ended June 30,				Six months ended June 30,
	2001		2002		2001		2002
Interest expense on borrowings	205,611		195,038		418,182		378,098
Arrangement fees and other finance expenses, net	11,812		9,959		20,596		19,340
Capitalized interest (a)	(1,919	)	(4,876	)	(3,971	)	(8,086	)
Interest income	(55,018	)	(43,917	)	(113,848	)	(84,533	)
Foreign exchange (gains) / losses	(87,786	)	171,555		(116,486	)	118,166
	72,700		327,759		204,473		422,985

Revenues from the sale of goods and services are carried, including discounts and net of VAT. In general, revenues are recognised as of the date of delivery or the provision of the goods or services. Access revenue is billed once a month in advance and is recognized, through deferred revenue, when earned. Airtime revenue is billed one month in arrears and is recognized, through estimated receivables, in the period the airtime is used. Airtime revenue from prepaid customers is recognized in the period the airtime is used. Equipment revenue from sales to dealers is recognized at the time of sale.

(an) ~~Capitalization~~Foreign ~~rates~~currency ~~used to determine capitalized interest were as follows:~~conversion

	Three months ended June 30,				Six mon ths ended June 30,
	2001		2002		2001		2002
Capitalization rates	8.1	%	8.6	%	7.9	%	8.5	%

Transactions in foreign currency are converted and accounted for in accordance with the NBS foreign exchange rate valid at the date of the transaction (payables on the date of the receipt of an invoice, receivables on the issue date of an invoice). Cash is converted and accounted for on the date of movement in the bank account or cash in hand.

12All assets and liabilities in foreign currency are converted using the NBS foreign exchange rate valid at the balance sheet date. Provisions are made for unrealised foreign exchange losses in the income statement. Unrealised foreign exchange gains are not posted to the income statement as at the balance sheet date. Foreign exchange differences from cash in hand, bank accounts and short-term financial investments are posted to income statements.

~~Table~~o) ofAdditional ~~Contents~~pension plan

~~EuroTel~~At ~~Bratislava~~present, athe Company does not offer any additional pension plan.s The Company makes regular contributions to the statutory pension plan.

~~Notes~~p) toDeferred ~~the Condensed Consolidated Financial Statements~~ tax

~~(in~~Due ~~thousands~~to temporary differences between the depreciation of ~~Slovak~~tangible ~~Crowns)~~and ~~(unaudited)~~intangible fixed assets for accounting and tax purposes, the Company accounted for the deferred tax liability as at 31 December 2001.

~~11. Income~~6 ~~Taxes~~of 23

AEuroTel ~~reconciliation~~Bratislava, ~~between~~a.s. ~~the reported income tax charge / (credit) and the theoretical amount that would arise using the statutory tax rates is as follows:~~

	Three months endedJune 30,			Six months endedJune 30,
	2001	2002		2001		2002
Income before tax	174,055	88,984		381,188		179,251
Income tax at 25% (2001: 29%)	50,477	22,246		110,545		44,813
Non-deductible provision for doubtful accounts (a)	5,087	(10,699	)	11,478		(19,107	)
Non-deductible provision for inventory	947	(1,548	)	(5,488	)	(1,986	)
Non-deductible advertising expenses	1,502	2,244		1,502		2,638
Non-deductible compensation fee (b)	—	8,750		—		8,750
Forgiven interest on shareholder loan	18,280	—		18,280		—
Other, net	1,208	13,927		9,902		17,148
	77,501	34,920		146,219		52,256
Income tax expense for the period
The tax charge for the period comprises:
Deferred tax charge (c)	73,428	16,724		135,972		33,260
Tax charge in respect of current and prior periods	1,700	18,196		4,990		18,996
Withholding tax charged to income (d)	2,373	—		5,257		—
	77,501	34,920		146,219		52,256

Notes to the Financial Statements

~~(a)~~For ~~Uncollectable receivables are not deductible for tax until certain statutory collection requirements are complied with. As described under Note 3 (a)~~ the ~~Amendment~~year toended ~~the Income Taxes Act, effective January 1, 2002 relaxed the rules for tax benefit collection related to receivables due after December~~ 31, ~~2001. The treatment of receivables due prior to~~ December ~~31,~~ 2001 ~~was not modified. Movements in bad debt provision in relation to such pre-existing receivables therefore continue to be a permanent difference for income tax purposes.~~

~~(b)~~2 ACCOUNTING ~~Compensation~~POLICIES ~~fee~~AND ~~paid~~GENERAL toACCOUNTING ~~the~~PRINCIPLES (continued) ~~owners of the leased property related to the vacating of the old office space rented under non-cancelable operating leases is tax non-deductible expense for the income tax purposes.~~

(cr) ~~The~~Research ~~deferred tax charge is mainly the result of the differences between accounting~~ and tax depreciation, unrealized foreign exchange losses which are not considered tax deductible under current Slovak tax legislation until realized, accruals including interest on long term notes which are not considered tax deductible under current Slovak tax legislation until paid, and tax loss carryforwards.development

~~(d)~~As ~~During~~at ~~the~~31 ~~six~~December ~~months of~~ 2001 ~~EuroTel charged its income statement with Sk5~~,~~257~~ of withholding tax related to interest income taxed directly at source at a rate of 15%. Under Slovak law, such payments would be available for offset with income tax liability, but are not recoverable in the ~~event~~Company ofreported ano ~~tax~~costs ~~loss,~~relating ~~which~~to ~~was~~research ~~the~~and ~~case in 2001~~development. The tax withheld on EuroTel’s interest income of the six months of 2002 in the amount of Sk2,712 was carried forward as income tax prepayment as it is expected that EuroTel will produce taxable profits in 2002 fiscal year.

~~12. Capital~~s) ~~Commitments~~Changes in accounting

~~EuroTel~~No ~~had~~ changes have been made in the ~~following~~accounting, ~~contractual~~valuation, ~~capital~~manner ~~commitments:~~of depreciation, or presentation of individual financial statement items in 2001.

	As ofDecember 31,	As ofJune 30,
	2001	2002
Capital expenditures that have been contracted for but have not been provided for in the financial statements	309,672	475,558

7 of 23

~~These~~EuroTel ~~commitments principally relate to the network~~Bratislava, ~~with the majority of payments expected to occur within one year~~a.s.

13Notes to the Financial Statements

~~Table~~For ofthe ~~Contents~~year ended 31 December 2001

~~EuroTel~~3 INTANGIBLE ~~Bratislava,~~ASSETS ~~a.s.~~

~~Notes~~(row to# ~~the~~004 ~~Condensed~~of ~~Consolidated~~Balance ~~Financial~~sheet) ~~Statements~~

~~(in thousands of Slovak Crowns) (unaudited)~~ Costs

13. Related Party Transactions

Type of asset	Balance sheet Column 1	1 January 2001 SKK ‘000	Additions SKK ‘000	Transfers SKK ‘000	31 December 2001 SKK ‘000
Software	007	1,529,598	—	279,163	1,808,761
Valuable rights	008	1,053,214	—	—	1,053,214
Other intangible assets	009	24,098	—	2,524	26,622
Assets in the course of construction	010	67,352	529,121	281,687	314,786

Total		2,674,262	529,121	0	3,203,383

InAccumulated ~~the~~depreciation normal course of business EuroTel purchases certain telecommunications services from and sells certain services to Slovak Telecom. EuroTel has certain lease agreements with ST. Related party transactions with AWBV and T-Mobile International constitute management fees paid for consulting services and payments for seconded employees. On March 22, 2001, EuroTel’s shareholders approved an increase in ordinary share capital by capitalizing all shareholder loans and interest accrued thereon through December 31, 2000 (see Note 6). EuroTel also purchases and sells in the normal course of business telecommunications services from following subsidiaries, associated undertakings and joint ventures within the respective groups of EuroTel’s shareholders: Eurotel Praha and RadioMobil in the Czech Republic, T-Mobile in Germany, T-Mobil Austria, Westel in Hungary, Vodafone Omnitel in Italy and PTC in Poland.

EuroTel’s transactions with the aforementioned related parties, majority of which were undertaken on an arms length basis, were as follows:

Type of asset	Balance sheet Column 2	1 January 2001 SKK ‘000	Additions SKK ‘000	31 December 2001 SKK ‘000
Software	007	1,039,216	446,919	1,486,135
Valuable rights	008	655,385	137,015	792,400
Other intangible assets	009	19,834	1,265	21,099

Total		1,714,435	585,199	2,299,634

	Three months ended June 30,		Six months ended June 30,
	2001	2002	2001	2002
Sales to ST	239,702	243,774	487,798	477,248
Purchases from ST	183,965	191,404	360,211	385,444
Lease expense paid to ST	10,388	10,100	20,870	20,950
Sales to Eurotel Praha	16,440	19,655	32,192	36,503
Purchases from Eurotel Praha	8,705	12,236	16,784	20,145
Sales to other related parties	21,399	27,210	45,626	55,001
Purchases from other related parties	12,790	16,381	24,482	31,062
Management fees paid to AWBV	4,659	13,323	11,016	20,709
Management fees paid to T-Mobile International AG	—	3,136	—	5,655
Directors and management fees	3,040	13,405	9,304	24,656

Net book value

14. Contingencies

Type of asset	Balance sheet column 3	1 January 2001 SKK ‘000	31 December 2001 SKK ‘000
Software	007	490,382	322,626
Valuable rights	008	397,829	260,814
Other intangible fixed assets	009	4,264	5,523
Assets in the course of construction	010	67,352	314,786

Total		959,827	903,749

~~Litigation~~Low-value intangible assets directly expensed in the year 2001 amounted to SKK 165 thousands(in 2000: SKK 568 thousands).

~~EuroTel is~~8 ~~in legal proceedings in the normal course~~ of ~~business~~23 including two administrative proceedings initiated by the Anti-Monopoly Office of the Slovak Republic based on a petition of a Voice over IP technology operator alleging breach of anti-monopoly law. The outcome of the proceedings is subject to a certain degree of uncertainty due to the anti-monopoly law in Slovakia being at an early stage of development and subject to varying interpretations. Management of the Company does not believe that the outcome will have a material adverse effect on EuroTel’s financial conditions, results of operations or cash flows.

EuroTel isBratislava, ~~not involved in any material legal proceedings outside of the normal course of business. Management does not believe the resolution of these legal proceedings will have~~ a ~~material adverse effect on EuroTel’~~.s ~~financial conditions, results of operations or cash flows~~.

~~Taxation~~Notes to the Financial Statements

~~The~~For ~~taxation~~the ~~system~~year inended ~~Slovakia~~31 isDecember at2001 ~~an early stage of development and is subject to varying interpretations and changes, which may be retroactive. In Slovakia, tax periods remain open for tax audits for 6 years.~~

144 TANGIBLE FIXED ASSETS

~~Table~~(row # 012 of ~~Contents~~Balance sheet)

~~EuroTel Bratislava, a.s.~~ Costs

Notes to the Condensed Consolidated Financial Statements

Type of assets	Balance sheet Column 1	1 January 2001 SKK ‘000	Additions SKK ‘000	Disposals SKK ‘000	Transfers SKK ‘000	31 December 2001 SKK ‘000
Land	013	148	—	—	—	148
Buildings, halls and constructions	014	92,543	—	-1,438	6,966	98,071
Machinery and equipment	015	6,649,909	—	-41,506	963,261	7,571,664
Other tangible fixed assets	018	56,473	—	-3,504	18,744	71,713
Assets under construction	019	277,674	1,138,488	—	-816,864	599,298
Advances paid for tangible fixed assets	020	19,346	215,774	—	-172,107	63,013

Total		7,096,093	1,354,262	-46,448	0	8,403,907

~~(in~~Accumulated ~~thousands~~depreciation ~~of Slovak Crowns) (unaudited)~~

15. Segment Information

Type of asset	Balance sheet Column 2	1 January 2001 SKK ‘000	Additions SKK ‘000	Disposals SKK ‘000	31 December 2001 SKK ‘000
Buildings, halls and constructions	014	26,246	17,459	-1,437	42,268
Machinery and equipment	015	2,420,554	909,859	-39,733	3,290,680
Other tangible fixed assets	018	47,615	6,312	-3,080	50,847

Total		2,494,415	933,630	-44,250	3,383,795

~~Management~~Net ~~considers~~book ~~EuroTel~~value to operate in two business segments based on services provided: mobile telecommunications services and managed data network services. There was no inter-segment revenue recognized. EuroTel tracks and manages financial results for its segments down to the gross profit level. Operating expenses not attributable to reportable segments include all operating expenses except for amortization of licenses and depreciation relating to mobile plant and equipment and managed data network services equipment. Assets attributable to segments include mobile plant and equipment and managed data network services equipment and the related construction in progress as well as licenses, inventory and trade receivables. Unallocated assets include computer equipment, motor vehicles, furniture and fixtures, tax and other receivables, prepayments, deferred finance charges and cash.

EuroTel operates in one geographical market—Slovak Republic.

Type of asset	Balance sheet Column 3	1 January 2001 SKK ‘000	31 December 2001 SKK ‘000
Land	013	148	148
Buildings, halls and constructions	014	66,297	55,803
Machines and machinery	015	4,229,355	4,280,984
Other tangible fixed assets	018	8,858	20,866
Assets under construction	019	277,674	599,298
Advance paid for tangible fixed assets	020	19,346	63,013

Total		4,601,678	5,020,112

~~The~~9 ~~information~~of in23 ~~the following tables is disclosed in the same manner and amounts as used by the chief operating decision-maker to make operational decisions and allocate resources.~~

EuroTel’s ~~segment~~Bratislava, ~~financial~~a.s. ~~information was as follows:~~

	Mobile Communications Services		Managed Data Network Services		Unallocated		Total
Three months ended June 30, 2001
Revenues	1,760,094		116,429		—		1,876,523
Cost of sales and services	(790,555	)	(37,618	)	—		(828,173	)
Gross profit	969,539		78,811		—		1,048,350
Operating expenses	(258,766	)	(13,029	)	(529,800	)	(801,595	)
Operating profit	710,773		65,782		(529,800	)	246,755
Finance costs	—		—		(72,700	)	(72,700	)
Profit / (loss) before tax	710,773		65,782		(602,500	)	174,055
Income taxes	—		—		(77,501	)	(77,501	)
Net income / (loss)	710,773		65,782		(680,001	)	96,554
Depreciation	(241,340	)	(12,989	)	(98,172	)	(352,501	)
Amortization	(17,426	)	(40	)	—		(17,466	)

Notes to the Financial Statements

15For the year ended 31 December 2001

~~Table~~4 TANGIBLE ofFIXED ~~Contents~~ASSETS (continued)

~~EuroTel~~Low-value ~~Bratislava~~tangible fixed assets directly expensed in 2001 amounted to SKK 4,286 athousands (in 2000: SKK 1,636 thousands).s As at 31 December 2001, the Company has no assets pledged as security for loans.

~~Notes~~The toCompany’s ~~the~~fixed ~~Condensed~~assets ~~Consolidated~~and inventories ~~Financial~~are ~~Statements~~insured with Allianz insurance company, a.s. The total insured amount is SKK 3,000,000 thousands (SKK 536,756 thousands as at 31 December 2000). The insurance coverage starts on 16 January 2001 and ends on 15 January 2002.

~~(in~~As ~~thousands~~at of31 ~~Slovak~~December ~~Crowns)~~2001, ~~(unaudited)~~the Company had no assets under financial leasing.

~~15. Segment~~As ~~Information~~at ~~(continued)~~31 December 2001, the Company has no assets with a market value significantly different from their net book value.

	Mobile Communications Services		Managed Data Network Services		Unallocated		Total
Three months ended June 30, 2002
Revenues	2,071,443		117,778		—		2,189,221
Cost of sales and services	(850,244	)	(37,356	)	—		(887,600	)
Gross profit	1,221,199		80,422		—		1,301,621
Operating expenses	(292,828	)	(15,310	)	(576,740	)	(884,878	)
Operating profit	928,371		65,112		(576,740	)	416,743
Finance costs	—		—		(327,759	)	(327,759	)
Profit / (loss) before tax	928,371		65,112		(904,499	)	88,984
Income taxes	—		—		(34,920	)	(34,920	)
Net income / (loss)	928,371		65,112		(939,419	)	54,064
Depreciation	(275,402	)	(15,270	)	(80,622	)	(371,294	)
Amortization	(17,426	)	(40	)	—		(17,466	)

5 FINANCIAL INVESTMENTS

	Mobile Communications Services		Managed Data Network Services		Unallocated		Total
Six months ended June 30, 2001
Revenues	3,406,466		231,655		—		3,638,121
Cost of sales and services	(1,447,048	)	(74,276	)	—		(1,521,324	)
Gross profit	1,959,418		157,379		—		2,116,797
Operating expenses	(508,164	)	(26,751	)	(996,221	)	(1,531,136	)
Operating profit	1,451,254		130,628		(996,221	)	585,661
Finance costs	—		—		(204,473	)	(204,473	)
Profit / (loss) before tax	1,451,254		130,628		(1,200,694	)	381,188
Income taxes	—		—		(146,219	)	(146,219	)
Net income / (loss)	1,451,254		130,628		(1,346,913	)	234,969
Depreciation	(473,331	)	(26,652	)	(193,373	)	(693,356	)
Amortization	(34,833	)	(99	)	—		(34,932	)

(row # 022 of Balance sheet)

16On 29 December 1999, EuroTel Bratislava established its subsidiary company Slovak Wireless Finance Company B.V. (“SWFC”) with its registered seat in the Netherlands (Amsteldijk 166, 1079LH, Amsterdam), which is 100% owned by EuroTel.

Name and address of the company	% of stake in registered share capital	Shareholder’s equity		Profit/loss
Name and address of the company	% of stake in registered share capital	31 December 2000 SKK ‘000	31 December 2001 SKK ‘000	31 December 2000 SKK ‘000	31 December 2001 SKK ‘000
SWFC	100	8,978	10,837	4,064	5,982

Total	100	8,978	10,837	4,064	5,982

~~EuroTel~~* ~~Bratislava,~~Note: The Notes to the Financial Statements as at 31 December 2000 showed a profit of SKK 8,193 thousands for that date, rather than the actual profit of SKK 4,064 thousands. This is because SWFC’s. final financial statements were not available at the time the Notes were prepared.

~~Notes~~Equity tointerest ~~the~~in ~~Condensed~~SWFC ~~Consolidated~~is ~~Financial~~carried ~~Statements~~at acquisition costs.

(In 2001, the Company repurchased EUR 15 million of SWFC’s long-term notes in a series of open market transactions. Long-term notes amounting to SKK 673,804 thousands are shown on line number 027 ‘Other financial investments’ of ~~Slovak~~the ~~Crowns)~~balance sheet. ~~(unaudited)~~At 31 December 2001, the revenues from financial investments amounted to SKK 16,685 thousands.

15. Segment Information (continued)

	1 January 2001 SKK ‘000	Additions SKK ‘000	Foreign exchange difference SKK ‘000	31 December 2001 SKK ‘000
Shares and ownership interest in companies with controlling interest	814	—	-23	791
Other financial investments	—	673,804	—	673,804

Total	814	673,804	-23	674,595

	Mobile Communications Services		Managed Data Network Services		Unallocated		Total
Six months ended June 30, 2002
Revenues	4,044,865		232,183		—		4,277,048
Cost of sales and services	(1,835,063	)	(73,061	)	—		(1,908,124	)
Gross profit	2,209,802		159,122		—		2,368,924
Operating expenses	(590,373	)	(46,085	)	(1,130,230	)	(1,766,688	)
Operating profit	1,619,429		113,037		(1,130,230	)	602,236
Finance costs	—		—		(422,985	)	(422,985	)
Profit / (loss) before tax	1,619,429		113,037		(1,553,215	)	179,251
Income taxes	—		—		(52,256	)	(52,256	)
Net income / (loss)	1,619,429		113,037		(1,605,471	)	126,995
Depreciation	(555,521	)	(46,005	)	(159,063	)	(760,589	)
Amortization	(34,852	)	(80	)	—		(34,932	)

10 of 23

	Mobile Communications Services	Managed Data Network Services	Unallocated	Total
As of December 31, 2001
Total assets	6,036,164	357,268	5,870,018	12,263,450
Total liabilities	1,378,389	78,304	7,220,310	8,677,003
Capital expenditure	1,276,163	84,177	479,265	1,839,605
As of June 30, 2002
Total assets	5,947,605	358,307	6,118,649	12,424,561
Total liabilities	1,094,471	60,120	7,556,528	8,711,119
Capital expenditure	523,556	40,632	223,102	787,290

EuroTel Bratislava, a.s.

17Notes to the Financial Statements

~~Table~~For ofthe ~~Contents~~year ended 31 December 2001

~~EuroTel~~6 INVENTORIES ~~Bratislava, a.s.~~

~~Notes~~(row to# ~~the~~029 ~~Condensed~~of ~~Consolidated~~Balance ~~Financial~~sheet) ~~Statements~~

(in thousands of Slovak Crowns) (unaudited)

	2001 SKK ‘000	2000 SKK ‘000
Material	78,094	55,692
Goods	182,768	81,437

Total	260,862	137,129

16Inventories at a cost of SKK 280,036 thousands (31 December 2000: SKK 170,633 thousands) are shown net of a provision of SKK 19,174 thousands (31 December 2000: SKK 33,504 thousands) for slow-moving (obsolete) inventories, in the amount of SKK 260,862 thousands (as at 31 December 2000: SKK 137,129 thousands). ~~Subsequent~~ ~~events~~The provision for inventories can be analysed as follows:

EuroTel was awarded by the Telecom Office a license for the implementation and operation of a public mobile telecommunication network (the “license”) based on the Universal Mobile Telecommunications System (“UMTS”) standard.

	2001 SKK ‘000	2000 SKK ‘000
Balance as at 1 January	33,504	58,621
Creation of provision	191,298	572,866
Release of provision	-205,628	-597,983

Balance as at 31 December	19,174	33,504

~~The license~~Inventories ~~became~~at ~~effective~~a onbook ~~July~~value ~~16,~~of ~~2002~~SKK ~~and~~260,862 isthousands ~~valid~~(as ~~through 2022,~~ at ~~which point EuroTel will have the option to renew the license. EuroTel will commence providing UMTS services no later than 30 months from the date on which the UMTS frequency is~~31 ~~released~~December to2000: ~~it.~~SKK ~~EuroTel~~137,129 ~~anticipates~~thousands) ~~the~~are ~~release~~covered ofby the ~~UMTS~~insurance ~~frequency~~policy toinsuring ~~occur,~~all ~~in accordance with~~ the ~~license,~~Company’s ~~no later than September 30, 2003~~assets. The ~~cost~~amount of ~~the~~insurance ~~license~~ is ~~Sk1,499~~set ~~million,~~out ~~of which Sk500 million will be payable~~ in ~~mid-August~~section ~~2002 and~~4 ~~the~~‘Tangible ~~remaining~~fixed ~~Sk999~~assets’ ~~million~~(page is10 ~~due~~of ~~on December 2, 2002. EuroTel will fund~~ the ~~payments~~Notes ~~required~~to ~~under~~ the ~~license from surplus cash carried on the balance sheet as of June 30, 2002~~Financial Statements).

~~17. Reconciliation~~Long-term tocontracts ~~United States Generally Accepted Accounting Principles~~

~~EuroTel’s~~The ~~financial~~Company ~~statements~~has ~~are~~not ~~prepared~~accounted infor ~~accordance~~long-term ~~with~~contracts ~~IAS, which differ~~ in certain respects from United States Generally Accepted Accounting Principles (“U.S. GAAP”). The principal differences between IAS and U.S. GAAP are presented and described below, together with explanations of the ~~adjustments~~year ~~that affect consolidated net income for the three months and six months ended June 30,~~ 2001 ~~and 2002~~.

	Three months ended June 30,				Six months ended June 30,
	2001		2002		2001		2002
Reconciliation of net income
Net income reported under IAS	96,554		54,064		234,969		126,995
U.S. GAAP adjustments:
— shareholders pushdown (a)	(706	)	(706	)	(1,412	)	(1,412	)
Presentation of net income under U.S. GAAP	95,848		53,358		233,557		125,583

11 of 23

~~There~~EuroTel ~~are~~Bratislava, ~~no differences between shareholders’ equity reported under IAS and U~~a.Ss. ~~GAAP.~~

~~(a) Shareholder~~Notes ~~Pushdown~~to the Financial Statements

~~Under~~For ~~IAS, expenses paid by~~ the ~~shareholders~~year onended ~~behalf~~31 ofDecember ~~EuroTel~~2001 do not constitute a contribution of capital. In addition, EuroTel is not required to recognize an expense related to shareholder payments. During the periods presented, EuroTel had portions of compensation expense paid by its shareholders. Under U.S. GAAP, EuroTel is required to recognize an expense and a concurrent contribution of capital by the shareholder for these costs when material. This transaction has no effect under Slovak law and no effect on net equity.

~~(b) Comprehensive~~7 ACCRUALS ~~Income~~AND PREPAYMENTS

~~In September 1997, the FASB adopted Statement of Financial Accounting Standards No. 130. “Reporting Comprehensive Income”~~ (~~“FAS~~rows ~~130”)~~# ~~which~~037 ~~establishes rules for the reporting of comprehensive income~~ and ~~its components.~~055 ~~EuroTel had no income components that qualified as comprehensive income under FAS 130 for any~~ of ~~the~~Balance ~~periods~~sheet) ~~presented.~~

	31 December 2001 SKK ‘000	31 December 2000 SKK ‘000
Short-term receivables
Trade receivables	1,598,753	1,380,980
Other receivables	383	814
Receivables from shareholders	1,100	1,100
State tax receivables	15,039	13,108

Total	1,615,275	1,396,002

Long-term receivables
Trade receivables	4,187	3,532

Total	4,187	3,532

~~Table~~The gross value of ~~Contents~~receivables totalling SKK 1,615,275 thousands (31 December 2000: SKK 1,396,002 thousands) are shown net of a provision of SKK 818,785 thousands (31 December 2000: SKK 753,815 thousands) for bad and doubtful debts and for receivables against debtors in bankruptcy, in the amount of SKK 796,490 thousands (31 December 2000: SKK 642,187 thousands).

~~EuroTel~~Ageing ~~Bratislava,~~analysis ~~a.s.~~of receivables is as follows:

Notes to the Condensed Consolidated Financial Statements

	31 December 2001 SKK ‘000	31 December 2000 SKK ‘000
Receivables within the due date	756,923	606,756
Overdue receivables	858,352	789,246

Total	1,615,275	1,396,002

~~(in~~12 ~~thousands~~ of ~~Slovak~~23 ~~Crowns) (unaudited)~~

~~17. Reconciliation~~EuroTel toBratislava, ~~United~~a.s. ~~States Generally Accepted Accounting Principles (continued)~~

~~(c) Deferred~~Notes ~~Finance~~to ~~Charges~~the Financial Statements

~~Under~~For ~~IAS 39,~~ the ~~Company~~year ~~offsets~~ended ~~the~~31 ~~deferred~~December ~~finance~~2001 charges related to the issue of its long term notes against the long term notes liability. Under U.S. GAAP in accordance with Accounting Principles Board Opinion No. 21, “Interest on Receivables and Payables”, deferred finance charges must be reported as a separate asset in the balance sheet. The “Long term notes” balance and “Deferred finance charges” balance at June 30, 2002 were Sk7,088,800 and Sk244,704, respectively, under U.S. GAAP. There was no effect on consolidated net income or shareholder’s equity reported under U.S. GAAP.

~~(d) Consideration~~7 ACCRUALS ~~given~~AND byPREPAYMENTS a(continued) ~~Vendor to a Customer~~

InAt ~~November~~31 December 2001, the ~~Emerging~~Company ~~Issues~~has ~~Task~~created ~~Force~~a ~~(the “EITF”) released Issue No. 01~~bad-~~09,~~debt ~~“Accounting~~provision for Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendor’s Products)”, which applies to annual or interim financial statement periods beginning after December 15, 2001. The release provides that cash consideration (including sales incentives) given to customers or resellers should be accounted for as afollows: ~~reduction of revenue unless EuroTel receives a benefit that is identifiable and can be reasonably estimated.~~

EuroTel has reviewed all incentives provided to dealers and customers. In accordance with the adoption EITF No. 01-09 service commissions paid to dealers for the loyalty of existing customers and activation of new customers has been recorded as a direct reduction to revenue. For the six months ended June 30, 2002 and June 30, 2001 Sk48,928 and Sk60,654, respectively, have been reclassified from cost of sales to a reduction of revenue.

	2001 SKK ‘000	2000 SKK ‘000
Balance as at 1 January	753,815	647,290
Creation of provision	140,040	147,792
Re-posting of provision for receivables from debtors in bankruptcy	—	7,800
Release of provision	-75,070	-49,067

Balance as at 31 December	818,785	753,815

The ~~following~~Company ~~table~~does ~~presents~~not ~~effect~~have onany ~~the~~pledged ~~Mobile~~receivables ~~service~~as ~~and~~at ~~equipment~~31 ~~revenues and costs~~December ~~of sale under U~~2001.S. ~~GAAP.~~

	Three months ended June 30,				Six months ended June 30,
Effect on revenues and costs of sales	2001		2002		2001		2002
Decrease in Mobile service revenues	(7,141	)	(11,392	)	(14,313	)	(23,720	)
Decrease in Mobile equipment and other sales	(23,030	)	(11,491	)	(46,341	)	(25,208	)
Decrease in Mobile equipment and service commissions	30,171		22,883		60,654		48,928
Net effect on income	—		—		—		—

Deferred expenses and accrued income

The adoption of EITF No. 01-09 had no effect on reported U.S. GAAP net income or equity.

	Balance sheet line number	31 December 2001 SKK ‘000
Deferred expenses:	057	387,017
Of that:
Prepaid rent		71,053
Deferred expenses relating to the provision of loan		289,325
Foreign exchange losses	059	212,306
Estimated receivables	060	127,720

Total		727,043

~~(e) Licenses~~The significant items in the deferred expenses accounts are deferred expenses of SKK 289,325 thousands related to the provision of a loan from SWFC. These expenses include those for legal fees, the professional services of consulting companies, and bank fees. The Company accounts for unrealised foreign exchange differences of SKK 210,871 thousands that are related to liabilities from the SWFC loan.

~~Effective~~13 January 1, 2002 we adopted SFAS No. 142, “Goodwill and Other Intangible Assets” which established new accounting and reporting requirements for goodwill and other intangible assets under U.S. GAAP. In connection with the adoption of ~~SFAS~~23 No. 142, we reassessed the useful life and classification of our identifiable intangible assets and determined, given current status of the legal and regulatory circumstances, that they continued to be appropriate. EuroTel expects to incur aggregate amortization expense of Sk69,864 for the year ending 2002 and for each of the five succeeding fiscal years in respect of the currently existing licenses.

19EuroTel Bratislava, a.s.

~~Table~~Notes ofto ~~Contents~~the Financial Statements

~~EuroTel~~For ~~Bratislava,~~the ~~a.s.~~year ended 31 December 2001

~~Part~~8 FINANCIAL IASSETS ~~— Financial Information~~

~~Item~~(row ~~2: Management’s~~# ~~Discussion~~051 ~~and Analysis~~ of ~~Results~~Balance ofsheet) ~~Operations and Financial condition~~

~~You~~Structure ~~should~~of ~~read the following discussion together with our consolidated~~ financial ~~statements,~~assets: including the accompanying notes, beginning on page 3. We prepared the consolidated financial statements and the accompanying notes in accordance with IAS, which differs in certain respects from U.S. GAAP. See Note 17 to the consolidated financial statements for a description of the principal differences between IAS and U.S. GAAP as they relate to us and a reconciliation of our net income and shareholders’ equity from IAS to U.S. GAAP. You should read the statements under “Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995” for information on how we present our forward-looking information.

Overview

	31 December 2001 SKK ‘000	31 December 2000 SKK ‘000
Cash
Cash in hand	994	6,180
Bank accounts—current	8,932	497,571
Bank accounts—term	934,030	973,101
Cash equivalents
Meal vouchers	427	491
Other financial assets
Debentures	3,677,290	3,553,593

Total	4,621,673	5,030,936

WeNo ~~are~~provision afor ~~leading~~financial ~~telecommunications~~assets ~~company~~was increated ~~the~~as ~~Slovak~~at ~~Republic,~~31 ~~offering both mobile telecommunications and managed data network services. In the reported period, we were one of only two mobile~~December ~~providers in the country licensed to offer GSM mobile telecommunications services and we are the sole provider of analog NMT services~~2001. As of today, there are three mobile providers licensed to offer GSM mobile telecommunications services in the country. Telecom Office of the Slovak Republic issued combined GSM 900 / 1800 and UMTS license to company called Profinet.sk, a.s. As of June 30, 2002, our GSM network covered approximately 81% of the geographical area of the Slovak Republic where approximately 98% of the Slovak population lives. We also provide managed data network services to a variety of domestic and multinational businesses and Slovak government institutions. As of June 30, 2002, we had 1,052,006 mobile customers and 3,490 managed data network customers, consisting primarily of customers of our frame relay and X.25 services. For the three months ended June 30, 2002, we generated revenues of Sk2,189 million, cash flows from operating activities of Sk910 million, EBITDA of Sk806 million and a net income of Sk54 million. For the six months ended June 30, 2002, we generated revenues of Sk4,277 million, cash flows from operating activities of Sk1,089 million, EBITDA of Sk1,398 million and a net income of Sk127 million.

~~The~~14 ~~following~~of ~~table~~23 ~~sets forth information about our network:~~

	As of June 30,
	2001		2002
Geographical area of Slovak Republic covered
NMT	79	%	79	%
GSM	81	%	81	%
Population of Slovak Republic covered
NMT	96	%	96	%
GSM	98	%	98	%
Number of base stations
NMT	139		136
GSM	587		711

EuroTel Bratislava, a.s.

~~Revenues~~Notes to the Financial Statements

~~Our~~For revenues consist of mobile service revenues, mobile equipment and other sales and managed data network services revenues. Mobile service revenues include all revenues we receive on a recurring basis from our mobile telecommunications services and include mainly monthly access fees, airtime charges for calls that originate on our network and interconnection and roaming fees. Airtime charges and monthly access fees are the ~~largest~~year ~~sources~~ended of31 ~~our~~December ~~mobile~~2001 revenues and include fees charged for our value-added services and special features. We generally set fees on a network-wide basis, although occasionally we negotiate individual fee agreements with large business customers. Airtime charges are generally paid by the initiator of the call, commonly referred to as “calling party pays,” except when a customer travels outside the Slovak Republic, in which case the customer is charged for a portion of the incoming call. Interconnection and roaming fees include interconnection fees from Slovak Telecom and Orange Slovensko, a.s. (“Orange”) for calls by their customers terminating on our network and roaming fees for calls by our mobile customers traveling outside of the Slovak Republic and for visitors using

209 SHAREHOLDERS’ EQUITY

~~Table~~(row # 062 of ~~Contents~~Balance sheet)

Shareholders’ equity for the Company amounted to SKK 3,733,700 thousands as at 31 December 2001 (31 December 2000: SKK 937,700 thousands).Thenominal value of a share is SKK 1,000. EuroTel Bratislava is a joint venture of Slovenské telekomunikácie (“ST”) and Atlantic West B.V. (“AWBV”), a company governed by the laws of the Netherlands.s AWBV is a joint venture company owned by Verizon Communications and AT&T Wireless Services, Inc. ST holds 53.26% and AWBV 46.74% of the voting rights. ST is entitled to 51% of the company profit, AWBV to 49%.

~~our~~The ~~network~~shareholders’ inequity ~~the~~is ~~Slovak~~divided ~~Republic~~into two groups of shares, as follows. ~~Revenues~~There ~~from~~are ~~national~~3,561,470 ~~interconnect~~ordinary ~~fees~~shares ~~from~~with ~~Slovak~~a ~~Telecom~~nominal ~~and~~value ~~Orange~~of ~~account~~SKK 1,000 for ~~approximately~~each ~~25%~~share, and ~~26%~~there ofis ~~Mobile~~one ~~service~~voting right for each share. There are ~~revenue~~172,230 inordinary ~~the~~shares ~~six~~with ~~months~~a ~~ended~~nominal ~~June~~value 30of SKK 1,000 ~~2002~~for ~~and~~each ~~2001~~share, ~~respectively~~and there is one voting right for each share.

~~Mobile~~On ~~equipment~~22 ~~and~~March ~~other~~2001, ~~sales~~EuroTel’s ~~include all~~shareholders ~~revenues~~approved wean ~~receive~~increase onin aordinary ~~non-recurring~~share ~~basis~~capital ~~from~~by ~~our~~SKK ~~mobile~~2,796,000 ~~business~~thousands ~~and~~by ~~include~~capitalizing ~~mainly~~shareholder ~~sales~~loans ~~of handsets~~ and ~~accessories~~interest asaccrued ~~well~~on asthese ~~one-time~~through ~~activation~~31 ~~fees.~~December Managed data network services revenues consist of revenues generated when we provide our data customers with access and use of our data network, as well as revenue from the installation and rental of data transmission equipment2000.

AsMovements ~~a provider of telecommunications services, our revenues are affected by growth~~ in ~~our~~shareholders’ ~~customer~~equity base, usage of our services and prices charged for each of the services that we offer. Our revenues are also affected by customer mix, with business customers generally having higher average call volume than non-business customers. Continued customer and service usage growth will depend on a number of competitive factors, including pricing and promotions, the range and quality of our services, the capacity and coverage of our network, as well as general economic and market conditions in ~~the~~SKK ~~Slovak~~thousands: Republic. We expect that average minutes of use and revenue per customer for our mobile customers will fall as mobile penetration in the Slovak Republic increases, because many of our new customers will be non-business customers who use their mobile phones less frequently.

The following table sets forth key business indicators:

	Balance sheet line number	1 January 2001	P/L for the current period	Capitalization of shareholders’ loans	31 December 2001
Registered share capital	064	937,700	—	2,796,000	3,733,700
Other capital funds	068	1,036	—	—	1,036
Statutory reserve fund	072	49,622	—	—	49,622
Results from previous periods					—
Loss carried forward from previous periods	077	-570,004	-1,095,316	—	-1,665,320
Profit/(loss) for the current period	078	-1,095,316	1,727,560	—	632,244

Total shareholder’s equity	062	-676,962	632,244	2,796,000	2,751,282

	Three months ended June 30,				Six months ended June 30,
	2001		2002		2001		2002
Average monthly revenue per customer
Post-paid	Sk1,876		Sk1,640		Sk1,851		Sk1,643
Pre-paid	Sk330		Sk247		Sk342		Sk245
Blended	Sk845		Sk617		Sk878		Sk608
Subscriber Acquisition Costs
Post-paid	Sk4,945		Sk4,123		Sk4,897		Sk4,308
Pre-paid	Sk639		Sk578		Sk603		Sk520
Blended	Sk1,122		Sk1,406		Sk1,080		Sk1,615
Average monthly billable minutes per customer
Post-paid	275		229		267		239
Pre-paid	50		39		52		38
Blended	125		89		128		90
Average monthly churn rate
Post-paid	1.42	%	1.42	%	1.56	%	1.43	%
Pre-paid	1.83	%	2.13	%	1.61	%	2.21	%
Blended	1.70	%	1.94	%	1.59	%	2.01	%
Mobile originated billable SMS
Post-paid (1)	24		33		23		32
Pre-paid	24		22		25		23
Blended	24		25		24		25
Gross Adds (2)
Post-paid	15,189		21,874		25,175		66,459
Pre-paid	120,029		71,812		201,564		163,336
Total	135,218		93,686		226,739		229,795

At 31 December 2001, the Company has not recorded any subscribed share capital that would not be registered in the Commercial Register.

~~(1)~~On We10 doJuly ~~not~~2001, ~~provide~~the ~~SMS~~extraordinary ~~service~~General Meeting approved the financial statements for ~~NMT~~the ~~subscribers~~year 2000 and the proposal for the accounting treatment of the Company’s accounting loss for the year 2000. The loss of the previous accounting periods, amounting to SKK 570,004 thousands, has increased by the loss incurred in 2000 of SKK 1,095,316 thousands. The total loss is SKK 1,665,320 thousands.

~~(2)~~15 ~~Gross~~of ~~add~~23 ~~represents any new post-paid or pre-paid SIM card activated on our network~~

21EuroTel Bratislava, a.s.

~~Table~~Notes ofto ~~Contents~~the Financial Statements

~~EuroTel~~For ~~Bratislava,~~the ~~a.s.~~year ended 31 December 2001

~~The~~10 RESERVES ~~following table sets forth certain information about our customers:~~

	As of June 30,
	2001	2002
Mobile subscribers / customers
NMT Post-paid subscribers	15,146	12,955
GSM Post-paid subscribers	190,666	265,364
GSM Pre-paid customers	458,743	773,687
Total	664,555	1,052,006
Managed data network connections	6,706	7,079

(row # 080 of Balance sheet)

We have experienced tariff reductions in our mobile business as a result of increased competition with Orange, our only competitor in the Slovak Republic in the provision of mobile telecommunications services. Present competition with Orange is based mainly on pricing of handsets and services, network quality and coverage, the range of services offered and customer service. Mobile tariffs in the Slovak Republic are among the lowest in Europe. We have experienced decreasing minutes of use and mobile service revenue per user as a result of the introduction of per second billing on February 1, 2002 for post-paid customers and on March 1, 2002 for pre-paid customers. We have recorded a significant increase in the number of pre-paid customers as well as low-end usage post-paid customers in the six months ended June 30, 2002. These new customers have a generally lower usage of mobile services, which has resulted in lower average number of minutes of use and hence lower average revenue per user.

	1 January 2001 SKK ‘000	Creation of reserves SKK ‘000	Release of reserves SKK ‘000	31 December 2001 SKK ‘000
Reserves for unrealised foreign exchange losses	942,763	212,317	-942,774	212,306
Other reserves
Warranty repairs reserve	206	95	-206	95
Contractual penalties reserve	—	37,000	—	37,000
General risks reserve	—	34,500	—	34,500
Reserve on premium on long-term notes	—	9,892	—	9,892
Provision for the EuroTel Club	21,417	284,799	-280,900	25,316

Total	964,386	578,603	-1,223,880	319,109

~~Churn~~16 of 23

AsEuroTel ~~previously noted~~Bratislava, “Churn” refers to customer disconnections or suspensions of service. Involuntary disconnections or suspensions of service for our post-paid subscribers occur when they fail to pay or we suspect fraudulent use. Involuntary suspensions of service of our pre-paid customers occur when their credit on their pre-paid account reaches a ~~negative level or they fail to re-charge their pre-paid account within recent 12 months~~. ~~Voluntary disconnections or suspension of service occur when customers switch to a competing mobile network or terminate their use of mobile services~~s. The rate of churn indicates the percentage of customers that we need to replace in any given period before we can achieve net customer growth. Our total average monthly churn rate was approximately 1.9% in the three months ended June 30, 2002 and 2.0% in the six months ended June 30, 2002 compared to 1.7% in the three months ended June 30, 2001 and 1.6% in the six months ended June 30, 2001. The increase in the total average monthly churn rate was attributable to pre-paid customers. In the future, we expect the churn rate of pre-paid customers to remain relatively high due to the nature of the service. This is expected to have a significant impact on our churn rates due to the expected increase in pre-paid customer base in a future. We recognize that managing churn is an important factor in stabilizing revenue and maximizing cash flow.

ToNotes ~~minimize voluntary churn, we provide a high-quality network and service at competitive prices. We use our advanced information technology systems~~ to ~~understand, monitor and control voluntary churn. We also minimize voluntary churn through loyalty programs and targeted renewal campaigns for post-paid customers near~~ the ~~end of their contract. However, the success of our customer retention and cost recovery measures~~Financial ~~depends~~Statements ~~partially upon competitive factors beyond our control, including our competitor’s rate structures, service offerings and incentive programs.~~

AFor significant cause of churn has been our policy to terminate customers for failure to pay for our services. Under Slovak law, we are limited in conducting credit checks through credit bureaus or other third parties. We established and maintain our own databases through which we conduct credit checks on potential customers, but our information is limited. Our inability to check the ~~credit~~year ~~history~~ended of31 ~~potential~~December ~~customers~~2001 ~~increases the risk of customer default and our rate of churn.~~

2211 ACCRUALS AND DEFERRED INCOME

~~Table~~(rows # 084, 091 and 105 of ~~Contents~~Balance sheet)

~~EuroTel~~Analysis ~~Bratislava,~~of ~~a.s.~~liabilities by time to maturity:

Expenses

	Within one year SKK ‘000	Over five years SKK ‘000	Total SKK ‘000
Liabilities as at 31 December 2001
Trade payables	650,564	—	650,564
Other direct taxes	6,834	—	6,834
Deferred tax liability	515,655	—	515,655
Payables to employees	22,767	—	22,767
Payables to social funds	11,421	—	11,421
Advances received	141,319	—	141,319
Other payables	2,735	—	2,735
Long-term liabilities to related parties	—	7,483,080	7,483,080
Accrued expenses and deferred income	1,103,945	—	1,103,945

Total	2,455,240	7,483,080	9,938,320

~~Cost~~At of31 ~~Sales~~December ~~and Services. Cost of sales and services~~2001, ~~which~~the ~~does~~Company ~~not~~accounts ~~include~~for ~~depreciation,~~a ~~principally~~deferred ~~consists~~tax liability of ~~expenses~~SKK ~~related to the operation of our mobile and data networks~~515,655 ~~including interconnection costs~~thousands, ~~roaming~~calculated ~~fees~~as ~~paid~~25% ~~to other~~of ~~mobile~~the ~~operators~~difference ~~when~~between ~~our~~the ~~customers~~tax ~~use their networks, leased circuit costs~~ and ~~license~~the ~~fees.~~book ~~Cost~~value of ~~sales and services also includes~~ the ~~cost~~Company’s offixed ~~equipment sold to customers, including mobile handsets, SIM cards, accessories and modems~~assets. ~~These~~ ~~costs~~Analysis ~~are proportional to the number~~ of ~~gross~~liabilities ~~customer~~by ~~additions~~due indate: ~~each period.~~

Operating Expenses. Operating expenses consist of selling, general and administrative expenses and depreciation and amortization expenses. Selling, general and administrative expenses consist of:

	31 December 2001 SKK ‘000	31 December 2000 SKK ‘000
Liabilities within due date	9,938,320	12,551,018

Total	9,938,320	12,551,018

•The ~~advertising~~Company ~~expenses;~~has recorded no overdue liabilities as at 31 December 2001.

•The ~~marketing~~Company ~~and~~does ~~sales~~not ~~expenses;~~have recorded, pledged, or otherwise secured liabilities, nor does it have liabilities from the issue of bonds.

•17 ~~wages~~of ~~and~~23 ~~employee benefits;~~

•EuroTel ~~network~~Bratislava, ~~and~~a.s. ~~IT support and maintenance expenses;~~

•Notes ~~bad~~to ~~debt~~the ~~expense;~~Financial Statements

•For ~~rent~~the ofyear ~~base~~ended ~~stations,~~31 ~~shops~~December ~~and~~2001 ~~office space; and~~

•11 ACCRUALS ~~other~~AND ~~general~~DEFERRED ~~costs~~INCOME ~~such~~(continued) ~~as professional fees and administrative costs and office supplies.~~

WeSocial ~~reserve~~fund for bad debt expense using a formula based on an aging of accounts receivable. This formula is reflected in our statements of operations. Prior to January 1, 2002, the Slovak tax law allowed a debtor to claim a tax benefit only after pursuing all available remedies against a delinquent customer. As a result, before we could claim the tax benefit of a write-off, a delinquent customer would either have had to have gone through a bankruptcy proceeding or we would have had to have commenced legal proceedings against this customer and obtained a final adjudication of our claim. It is not commercially feasible for us to pursue each customer that fails to make payments on our invoices. The Amendment to the Income Taxes Act, effective from January 1, 2002, significantly relaxed the rules for tax benefit collection in relation to newly originated receivables. In accordance with the Amendment, 50% of the bad debt provision related to receivables due after December 31, 2001 becomes tax deductible after 2 years from the receivable due date and a tax benefit for further 25% of the receivable value can be claimed if the receivable is still unpaid after 36 months from the original due date. However, to obtain a 100% tax benefit we are still required to pursue all available remedies. To preserve a possibility of full tax deductibility we will not write off the receivable until we can record a full tax benefit. Accordingly, our balance sheet will reflect, over time, higher levels of gross accounts receivable and bad debt reserves. Our bad debt expense is lower for pre-paid customers.

Depreciation and amortization expenses consist of the depreciation of the property, plant and equipment used in our mobile and data networks and amortization of our licenses. These expenses have increased significantly over recent years because we have constructed our GSM network and they will continue to increase as we expand our network coverage and capacity.

	2001 SKK ‘000	2000 SKK ‘000
Balance as at 1 January	2,139	1,211
Creation:
From costs	3,660	2,787
Withdrawal:
Company canteen and workforce regeneration	-1,924	-1,321
Social aid, transportation	-1,140	-538

Balance at 31 December	2,735	2,139

~~Finance~~Accrued ~~Costs. Our finance costs include net interest expense (net of interest income), arrangement fees and other finance~~ expenses and ~~foreign~~deferred ~~exchange~~income losses or gains on non-Slovak Crown-denominated debt. We capitalize borrowing costs that are directly attributable to the purchase of property used in the development or construction of property, plant or equipment as part of the cost of such asset during the course of construction. Accordingly, we do not expense or include these borrowing costs as part of our finance costs. Our finance costs vary with the level of our debt, interest rates and exchange losses. Substantially all of our debt is denominated in currencies other than the Slovak Crown.

	Balance sheet line number	31 December 2001 SKK ‘000
Deferred income	108	275,198
Unrealised foreign exchange gains	109	1,794
Estimated liabilities	110	826,953

Total		1,103,945

~~Table~~The significant items recorded in the accrued expenses and deferred income accounts as at 31 December 2001 were estimated payables of ~~Contents~~SKK 217,622 thousands related to the interest on the loan from SWFC, as well as estimated payables of SKK 117,290 thousands related to the international roaming and interconnection fee with other providers of telecommunications services (such as Globtel, Nextra, and Slovenské Telekomunikácie). Non-invoiced capital expenditure was SKK 229,731 thousands. There was deferred income of SKK 257,198 thousands mainly arising from prepaid minutes of calls monthly access fees for the NMT, GSM and DNS networks.

~~EuroTel~~18 ~~Bratislava,~~of ~~a.s.~~23

~~Taxes. The~~EuroTel ~~corporate tax rate in the Slovak Republic decreased in 1999 from 40% to 29%~~Bratislava, effective January 1, 2000 and decreased further in 2001 from 29% to 25%, effective January 1, 2002. Taxes in the Slovak Republic can be reduced by operating losses which generate tax benefits offsetting taxable income. Legislation, which was put into effect on January 1, 2000, is intended to allow for the carryforward of up to three successive years of tax losses, inclusive of the 1999 tax year. The cumulative tax benefit of these carryforwards must be amortized evenly over the next consecutive five years. Any additional tax losses incurred during the amortization period are not available as a ~~future tax benefit, including any amortized amount, which cannot be fully utilized~~. ~~Prior to the legislation, only one year of tax losses could be carried forward at any one time~~s. Taxes are also affected by the tax deductibility of bad debt expense, which can only be deducted after all collection remedies are pursued. In addition, only realized foreign exchange losses are tax deductible under current Slovak tax legislation.

~~Foreign~~Notes ~~Exchange~~to ~~Exposure~~the Financial Statements

~~While~~For the ~~majority~~year ofended ~~our~~31 ~~revenues~~December ~~are~~2001 in Slovak Crowns, a significant portion of our expenses and liabilities are in currencies other than the Slovak Crown. Substantially all of our debt is in currencies other than the Slovak Crown. As a result, our operating income and cash flow may be affected if these other currencies appreciate against the Slovak Crown. Whenever we experienced a depreciation of the Slovak Crown in recent years, the Slovak Crown cost of servicing our debt as well as the cost of maintaining and expanding our mobile and data networks have increased. We recognize foreign exchange gains and losses on monetary assets or liabilities in foreign currency in the period in which we incur them. We include foreign exchange gains and losses incurred as part of our operating activities as operating costs. We include foreign exchange gains and losses arising from financing activities in finance costs.

We12 BANK ~~receive~~LOANS ~~some~~AND ~~revenues in Euros, U.S. dollars and special drawing rights from foreign carriers. These non~~LONG-~~Slovak Crown-denominated~~TERM ~~revenues are derived from roaming fees for calls placed by foreign customers on our network in the Slovak Republic. Our non~~INTER-~~Slovak~~COMPANY ~~Crown-denominated revenues represented approximately 4.3% and 4.2% of our total revenues in the~~LIABILITIES ~~three months ended June 30, 2001 and 2002 respectively.~~

24(row # 084 of Balance sheet)

~~Table~~The Company is a 100% owner of ~~Contents~~SWFC. On 23 March 2000, SWFC issued Series A bonds with an interest rate of 11.25%. The total value of these bonds was EUR 175 million, which SKK 7,699,300 thousands. Series A bond notes worth EUR 172.2 million have been exchanged for an equivalent amount of Series B bonds. The bonds are fully guaranteed by the Company. Their date of maturity is 30 March 2007.

~~EuroTel~~In ~~Bratislava~~March 2000, SWFC provided the Company with a loan of EUR 175 million, which was SKK 7,699,300 thousands.s The applied interest rate was 11.55% for each year until 30 September 2000. After that date, the interest rate was 11.38% for each year.

~~Results~~As of ~~Operations~~31 December 2001, the outstanding principal amount of SWFC loan of EUR 175 mil represented SKK 7,483,000 thousands.

~~Our~~The ~~major revenue and~~conditions ~~expense~~under ~~categories~~which ~~for~~ the ~~three~~bonds ~~months~~were ~~and~~issued ~~six~~limit ~~months~~the ~~ended~~repayment ~~June~~of ~~30,~~subordinated ~~2001~~shareholders ~~and~~loans, ~~2002~~including ~~are set forth in the table below~~interest.

	Three Months Ended June 30,				Six Months Ended June 30,
	2001		2002		2001		2002
	(in millions of Slovak Crowns)
Mobile service revenues	1,540		1,924		2,980		3,685
Mobile service cost of sales	388		550		739		1,039
Gross profit from mobile services	1,152		1,374		2,241		2,646
Gross margin from mobile services	75	%	71	%	75	%	72	%
Mobile equipment and other sales	220		147		427		360
Mobile equipment and other cost of sales	403		300		708		796
Gross (loss) from mobile equipment and other sales	(183	)	(153	)	(281	)	(436	)
Gross margin from mobile equipment and other sales	(83	)%	(104	)%	(66	)%	(121	)%
Data network service revenues	116		118		231		232
Data network service cost of sales	37		37		74		73
Gross profit from managed data network services	79		81		157		159
Gross margin from managed data network services	68	%	69	%	68	%	69	%
Total revenues	1,876		2,189		3,638		4,277
Total cost of sales and services	828		887		1,521		1,908
Gross profit	1,048		1,302		2,117		2,369
Gross margin	56	%	59	%	58	%	55	%
Selling, general and administration expenses	431		496		803		971
Depreciation and amortization	370		389		728		796
Operating income	247		417		586		602
Finance and other costs	73		328		205		423
Tax expense	77		35		146		52
Net income	97		54		235		127

Based on a decision of the Company’s shareholders, the following long-term loans they provided (and the related interest as at 31 December 2001) have been capitalised into equity: a loan of USD 10 million for obtaining the GSM 1800 licence, a loan of USD 29.5 million and a subordinate loan of USD 15 million. The total amount of these loans is SKK 3,058,929 thousands.

Three and Six Months Ended June 30, 2002 Compared to Three and Six Months Ended June 30, 2001

	2001 SKK ‘000	2000 SKK ‘000
Long-term loan for the GSM 900 licence
Slovak Telecom	48	54
AWBV	32	36
Long-term loan for the GSM 1800 licence (USD 10.0 million)
Slovak Telecom	—	241,684
AWBV	—	232,206
Interest	—	59,532
Long-term loan (USD 29. 5 million)
Slovak Telecom	—	712,968
AWBV	—	685,008
Interest	—	339,744
Long-term loan (USD 15.0 million)
Slovak Telecom	—	362,526
AWBV	—	348,309
Interest	—	76,952

Total debt to shareholders	80	3,059,019

~~Revenues. Our~~As ~~total~~at ~~revenues~~31 ~~increased~~December ~~by Sk313 million, or 17%, from Sk1,876 million in the three months ended June 30,~~ 2001 ~~to Sk2~~,~~189~~ ~~million in~~ the ~~three~~Company ~~months~~does ~~ended~~not ~~June~~have ~~30,~~any ~~2002.~~loans provided ~~For the six months ended June 30, 2002 total revenues increased~~ by ~~Sk639 million, or 18%, from Sk3,638 million in the six months ended June 30, 2001 to Sk4,277 million~~banks. ~~This increase was primarily attributable to an increase in the number of our mobile customers, both in our post-paid and pre-paid customer base.~~

~~Mobile~~19 service revenues, including interconnection and roaming fees paid by other operators, increased by Sk384 million, or 25%, from Sk1,540 million in the three months ended June 30, 2001 to Sk1,924 million in the three months ended June 30, 2002. For the six months ended June 30, 2002, mobile service revenues increased by Sk705 million, or 24%, to Sk3,685 million. This increase primarily reflected a 58% increase in the number of ~~our~~23 mobile customers, which grew from 664,555 as of June 30, 2001 to 1,052,006 as of June 30, 2002. Average monthly revenue per customer decreased by 27% from Sk845 in the three months ended June 30, 2001 to Sk617 in the three months ended June 30, 2002 and decreased by 31% from Sk878 in the six months ended June 30, 2001 to Sk608 in the six months ended June 30, 2002. We believe that this decline was primarily due to the increased number of non-business mobile customers, who typically choose our pre-paid service or lower end post-paid

25EuroTel Bratislava, a.s.

~~Table~~Notes ofto ~~Contents~~the Financial Statements

~~EuroTel~~For ~~Bratislava,~~the ~~a.s.~~year ended 31 December 2001

~~service~~13 REVENUES plans and generate lower average monthly revenues than business customers. We also experienced decreasing minutes of use and consequently, mobile service revenue per user as a result of our introduction of billing in per-second increments as of February 1, 2002 for post-paid customers and as of March 1, 2002 for pre-paid customers. Our pre-paid customers increased by 314,944 or 69% from 458,743 as of June 30, 2001 to 773,687 as of June 30, 2002. Deferred revenue increased by Sk68 million, from Sk327 million at June 30, 2001 to Sk395 million at June 30, 2002. This is due to an increase of Sk117 million in deferred mobile service revenue from new customers, offset by a reduction in deferred activation revenue of Sk49 million due to activation fee pricing promotions throughout first quarter 2002.

~~Mobile~~(rows ~~equipment~~# ~~and~~001 other sales decreased by Sk73 million, or 33%, from Sk220 million in the three months ended June 30, 2001 to Sk147 million in the three months ended June 30, 2002. This decrease was primarily due to sales of mobile phone handsets and ~~accessories,~~005 which decreased by Sk63 million, to Sk90 million, in the three months ended June 30, 2002 and due to a decrease in activation revenues, which decreased by Sk17 million, to Sk15 million in the three months ended June 30, 2002. Offsetting the decrease in sales of ~~mobile~~Income ~~phone~~statement) handsets and accessories and the activation revenues was an increase in contract penalty revenue by Sk6 million to Sk19 million in the three months ended June 30, 2002. Activation revenues decreased due to pricing promotions in the three months ended June 30, 2002 that reduced activation fees paid by new subscribers. Revenue from contract termination penalties increased as a result of promotion activities for the post-paid segment in the first quarter 2002.

~~Mobile~~Revenues ~~equipment~~for ~~and other sales decreased by Sk67 million, or 16%, from Sk427~~own million in the six months ended June 30, 2001 to Sk360 million in the six months ended June 30, 2002. This decrease was primarily due to sales of mobile phone handsets and accessories, which decreased by Sk33 million, to Sk246 million, in the six months ended June 30, 2002, decrease in activation revenues, which decreased by Sk33 million, to Sk33 million in the six months ended June 30, 2002 and due to decrease in revenue from contract termination penalties, which decreased by Sk15 million, to Sk29 million in the six months ended June 30, 2002. The decrease in sales of mobile phone handsets and accessories, activation revenues and revenues from contract penalties was partially offset by an increase in other value added services ~~revenue of Sk8 million. Activation revenue decreased due to pricing promotions throughout 2001~~ and ~~the~~goods ~~first six months of 2002 that reduced activation fees paid~~ by ~~new~~segments: subscribers. Revenue from contract termination penalties declined as a higher proportion of post-paid churn is attributed to low-end, non-business subscribers, where the collectibility of the contract termination penalties is lower than we experienced before influenced by the promotion activities in the first quarter 2002.

Managed data network service revenues increased by Sk2 million, or 2%, from Sk116 million in the three months ended June 30, 2001 to Sk118 million in the three months ended June 30, 2002. For the six months ended June 30, 2002, managed data network service revenues remained almost on the same level of Sk232 million compared to Sk231 million in the six months ended June 30, 2001. This revenue increase is attributable to an increase in managed data network equipment revenues by Sk1 million, from Sk1 million in the three months ended June 30, 2001 to Sk2 million in the three months ended June 30, 2002. The number of total data customer connections increased by 6% from 6,706 as of June 30, 2001 to 7,079 as of June 30, 2002.

	2001 in SKK ‘000	2000 in SKK ‘000
Revenues from mobile communications services and goods	7,434,174	5,430,530
Revenues from public data network services	473,361	447,937

Total sales	7,907,535	5,878,467

~~Cost of Sales and Services.~~14 ~~Cost~~INTEREST ofFROM ~~sales~~SHORT ~~and~~TERM ~~services~~FINANCIAL ~~increased~~ASSETS by Sk59 million, or 7%, from Sk828 million in the three months ended June 30, 2001 to Sk887 million in the three months ended June 30, 2002. As a percentage of total revenues, cost of sales decreased from 44% in the three months ended June 30, 2001 to 41% in the three months ended June 30, 2002. The increase in cost of sales and services results from higher interconnection and roaming costs of Sk126 million and Sk21 million, respectively. The increase in interconnection and roaming costs stems from higher customer base and changed calling patterns of our customers with more calls terminating in more expensive mobile network. Offsetting the increase in interconnect and roaming costs was a decrease in mobile phone handsets, accessories and SIM cards cost by Sk91 million in the three months ended June 30, 2002. For the six months ended June 30, 2002, costs of sales increased by 25%, to Sk1,908 million, from Sk1,521 million in the six months ended June 30, 2001. As a percentage of total revenues, cost of sales increased from 42% in the six months ended June 30, 2001 to 45% in the six months ended June 30, 2002.

We(row ~~have~~# ~~experienced~~036 ~~an increase~~ of ~~cost~~Income ofstatement) sales as a percentage of revenue in six months ended June 30, 2002 compared to the six months ended June 30, 2001 however a decrease in the three months ended June 30, 2002 compared to the three months ended June 30, 2001. This is a result of higher equipment cost of sales in the three months ended March 31, 2002 compared to equipment cost of sales in the three months ended March 31, 2001 as we successfully launched new set of post-paid service plans in the first quarter 2002.

26As at 31 December 2001, interest from short term financial assets amounts to SKK 160,410 thousands (31 December 2000: SKK 49,384 thousands), that represents interests from purchased bonds.

~~Table~~15 INTEREST ~~of Contents~~

~~EuroTel~~ (rows ~~Bratislava,~~# ~~a.s.~~041 and 042 of Income statement)

~~Cost~~Interest ofexpenses sales and services in our mobile business increased by Sk59 million, or 7%, from Sk791 million in the three months ended June 30, 2001 to Sk850 million in the three months ended June 30, 2002. This increase was due to an increase of Sk162 million in mobile service costs of sales, mainly due to an incremental interconnect costs required to connect our growing customer base to other networks, and also due to a decrease of Sk103 million in cost of sales related to mobile equipment and other sales which decreased from Sk403 million in the three months ended June 30, 2001 to Sk300 million in the three months ended June 30, 2002. For the six months ended June 30, 2002, cost of sales and services in our mobile business increased by Sk388 million, or 27%, as compared to the same period last year, to Sk1,835 million. This increase reflects an increase of Sk300 million in mobile service costs of sales, primarily due to interconnect and roaming costs required to connect our growing customer base to other networks of Sk214 million and Sk34 million respectively, and also an increase of Sk88 million in costs of sales related to mobile equipment and other sales, which increased from Sk708 million in the six months ended June 30, 2001 to Sk796 million in the six months ended June 30, 2002. Our negative gross margin on sales of mobile phone handsets, accessories and SIMs was (199)% in the three months ended June 30, 2002 and (186)% in the six months ended June 30, 2002, as compared to a negative gross margin of (136)% in the three months ended June 30, 2001 and (127)% in the six months ended June 30, 2001. This increase in negative margin on sales of mobile phones and accessories is due to management’s effort to gain the market share mainly in the post-paid segment, where customers are bound by contract for 24 months. Negative margins on sales of mobile phones arise due to the mobile telecommunications industry practice of selling mobile phone handsets at a price below their cost, in order to attract customers to their service.

Cost of sales and services in our managed data network services business in the three months ended June 30, 2002 remained at a constant Sk37 million as compared to the corresponding period 2001. For the six months ended June 30, 2002, cost of sales and services in our managed data network services business decreased by Sk1 million, or 1%, as compared to the same period last year, to Sk73 million. As a percentage of revenues, cost of sales in our managed data networks services decreased from 32% in the three and six months ended June 30, 2001 to 31% in the three and six months ended June 30, 2002 as we were able to maintain premium pricing on our services despite a general decline in the price of such managed data network services in the market.

Type of loan received		Amount of interest in SKK ‘000
Long-term loan from SWFC		862,277
Capitalised interest		-11,076
Borrowings from shareholders		63,034
Other		46

Total		914,281

~~Operating Expenses. Total~~Interest ~~operating~~income expenses increased by Sk84 million, or 10%, from Sk801 million in the three months ended June 30, 2001 to Sk885 million in the three months ended June 30, 2002. Operating expenses increased by Sk236 million, or 15%, to Sk1,767 million, in the six months ended June 30, 2002. This increase primarily reflected higher levels of depreciation and amortization expense, wages and employee benefits, professional fees, rent of buildings, network support and maintenance expense and bad debt expense. With the exception of employee-related expenses, for which some increase stemmed from inflation, the increase of total operating expenses was generally the result of overall growth of our operations.

~~Depreciation~~As ~~and~~at ~~amortization~~31 ~~expense~~December ~~increased by Sk19 million~~2001, orrevenue ~~5%,~~interest ~~from~~amounts ~~Sk370 million in the three months ended June 30, 2001~~ to ~~Sk389~~SKK ~~million in the three months ended June 30~~67,522 ~~2002~~thousands ~~and~~(31 byDecember ~~Sk68~~2000: ~~million,~~SKK ~~or 9%~~122,415 ~~to Sk796 million in the six months ended June 30~~thousands), ~~2002. This increase primarily reflects additional depreciation expense we incurred relating to the property, plant and equipment we acquired and constructed to meet the needs~~ of ~~our~~which ~~growing subscriber base and to increase~~ the ~~quality of our network in terms of coverage. Included in the depreciation charge for the six~~major ~~months~~part ~~ended June 30, 2002~~ is ~~also~~interest ~~a non-recurring write-off~~ of ~~Sk24~~SKK ~~million~~66,878 ~~representing~~thousands ~~the net book value of point-to-multipoint system~~ (~~“PMP”)~~31 ~~for~~December ~~wireless~~2000: ~~connection~~SKK ~~of the GSM base stations and MDNS customers to MDNS network. While the Telecom office opened a tender for a new license for the spectrum used by PMP equipment~~120,638 ~~EuroTel’s~~thousands) ~~management~~from ~~decided~~term ~~not to exercise this offer and ceased the usage of this equipment~~deposits. ~~PMP equipment was used 69% for the MDNS and 31% for the Mobile Communications Services business segment.~~

~~Wages~~16 EXTRAORDINARY ~~and~~REVENUES employee benefits increased by Sk31 million, or 24%, from Sk128 million in the three months ended June 30, 2001 to Sk159 million in the three months ended June 30, 2002. For the six months ended June 30, 2002, wages and employee benefits increased by Sk56 million, or 22%, to Sk311 due primarily to an increase in the average number of employees.

~~Professional~~(row ~~fees~~# ~~increased~~053 by Sk12 million, or 29%, from Sk42 million in the three months ended June 30, 2001 to Sk54 million in the three months ended June 30, 2002. This increase is mainly attributable to higher shareholders fees and expenses which increased by Sk12 million. For the six months ended June 30, 2002 professional fees increased by Sk42 million, or 60%, from Sk70 million in the six months ended June 30, 2001 to Sk112 million. This increase is attributable to higher consulting fees incurred in the first quarter of ~~2002~~Income instatement)

27As at 31 December 2001, the Company’s extraordinary revenues amounts to SKK 67,139 thousands (31 December 2000: SKK 4,484 thousands). The most significant portion (SKK 63,034 thousands) relates to the interest waived by the shareholders.

~~Table~~20 of ~~Contents~~23

EuroTel Bratislava, a.s.

~~connection~~Notes ~~with~~to the ~~UMTS~~Financial Statements ~~bidding process of Sk20 million, and an increase of Sk17 million and Sk4 million in shareholder fees and expenses, and legal fees, respectively.~~

~~Building~~For ~~rent expense increased by Sk7 million, or 25%, from Sk28 million in~~ the ~~three~~year ~~months~~ ended ~~June~~31 ~~30,~~December 2001 to Sk35 million in the three months ended June 30, 2002. For the six months ended June 30, 2002, building rent expense increased by Sk18 million, or 33%, to Sk72 million. The increase is attributable to new office space and newly opened shops. The new office space, whilst more expensive in total, is cheaper on a per square meter basis from the cancelled lease of the old corporate offices.

~~Network~~17 LEASED ~~support~~ASSETS and maintenance expense increased by Sk8 million, or 14%, from Sk59 million in the three months ended June 30, 2001 to Sk67 million in three months ended June 30, 2002. For the six months ended June 30, 2002, network support and maintenance expense increased by Sk14 million, or 12%, to Sk130 million. This increase reflects a continuing increase in repair and maintenance expense for our network equipment as certain warranties on purchased hardware and software expire.

~~Advertising,~~The ~~marketing~~Company ~~and~~has ~~sales~~liabilities ~~expense~~to ~~decreased~~a bynumber ~~Sk30~~of ~~million,~~third ~~or 23%,~~parties from ~~Sk133 million in~~ the ~~three~~rental ~~months~~of ~~ended~~administrative ~~June 30, 2001 to Sk103 million in three months ended June 30, 2002~~ and ~~remained~~commercial onspaces ~~the same level of Sk205 million~~ in ~~the~~which ~~six~~it ~~months~~has ~~ended~~placed its ~~June~~assets. ~~30,~~The ~~2002~~contracts aswith inthese ~~the~~third ~~same~~parties ~~period~~are offor ~~last~~periods ~~year~~between ~~mainly~~one ~~due to~~and ~~the~~12 ~~timing of certain promotional activities~~years. WeThe ~~expect~~minimal ~~advertising,~~amount ~~marketing~~of ~~and~~future ~~sales~~rental ~~expenses~~payments toarising ~~increase~~from inthese ~~2002,~~agreements ~~but~~is ~~believe that~~ as afollows: ~~percentage of revenue they will decline.~~

Bad debt expense increased by Sk15 million, or 500%, from negative Sk(3) million in the three months ended June 30, 2001 to Sk12 million in the three months ended June 30, 2002. Bad debt expense related to fraud, which is netted against revenues for the relevant period, increased from Sk7 million in the three months ended June 30, 2001 to Sk12 million in the three months ended June 30, 2002. As a percentage of total revenues, our total bad debt expense, including bad debt related to fraud, increased from 0.2% in the three months ended June 30, 2001 to 1.1% in the three months ended June 30, 2002. For the six months ended June 30, 2002, bad debt expense increased by Sk3 million, or 18% from Sk17 million in the six months ended June 30, 2001 to Sk20 million in the six months ended June 30, 2002. Bad debt expense related to fraud increased from Sk20 million in the six months ended June 30, 2001 to Sk22 million in the six months ended June 30, 2002. As a percentage of total revenues, our total bad debt expense, including bad debt related to fraud, remained on the same level of 1.0% in the six months ended June 30, 2002 as in the same period of last year. Management continues to focus on reducing bad debt expense and lowering churn rates in the post-paid segment. However the increase in bad debt expense was primary driven by the fraud originated from promotion activities during the first quarter 2002 for post-paid segment. Changes in our provision for doubtful accounts are determined based on an aging schedule and also on the specific identification of uncollectible accounts. Receivables older than 90 days and receivables related to customer fraud are 100% reserved for in our provision for doubtful accounts. In order to preserve the tax-deductible status of bad debt expense, our trade receivables may not be written out of our primary books and records until certain statutory collection requirements have been complied with.

Period	31 December 2001 SKK ‘000	31 December 2000 SKK ‘000
2001	—	147,432
2002	140,793	92,503
2003	129,391	97,556
2004	135,557	101,848
2005	141,607	106,024
2006	140,097	109,947
2007 – 2013	847,011	750,577

Total	1,534,456	1,405,887

~~Due~~The toamount ~~the~~of ~~factors~~rental ~~discussed~~payments ~~above,~~for ~~operating~~these ~~income~~leased ~~increased from~~assets ~~Sk247~~posted ~~million~~to expenses in the ~~three~~year ~~months ended June 30,~~ 2001 towas ~~Sk417~~SKK ~~million in the three months ended June 30~~264,513 ~~2002~~thousands ~~and~~(SKK ~~increased from Sk586 million in the six months ended June 30~~174,026 ~~2001~~thousands ~~to Sk602 million~~ in ~~the six months ended June 30, 2002~~2000).

~~Finance Costs.~~18 ~~Total~~OTHER ~~finance costs increased by Sk255 million, or 349%, from Sk73~~FINANCIAL ~~million~~OBLIGATIONS in the three months ended June 30, 2001 to Sk328 million in the three months ended June 30, 2002. Foreign exchange gains and losses decreased from gain of Sk88 million in the three months ended June 30, 2001 to a loss of Sk171 million in the three month ended June 30, 2002 as a result of devaluation of the Slovak Crown against Euro, in which all our borrowings are denominated. Interest expense on borrowings decreased from Sk205 million in the three months ended June 30, 2001 to Sk195 million in the three months ended June 30, 2002 as a result of the repurchase of €15 million in long term notes in September and October 2001 and the consequent reduction in interest expense. Interest income decreased from Sk55 million in the three months ended June 30, 2001 to Sk44 million in the three months ended June 30, 2002 reflecting a decrease in investments in securities and also reflecting lower average yield on such investments.

~~For~~At ~~the~~31 ~~six~~December ~~months ended June 30~~2001, ~~2002~~the ~~total~~Company ~~finance~~had ~~costs~~contractual ~~increased~~obligations byof ~~Sk218~~SKK ~~million~~309,672 orthousands ~~106%,~~(31 December ~~from~~2000: ~~Sk205~~658,069 ~~million~~thousands) into ~~the~~acquire ~~six~~fixed ~~months~~assets. ~~ended June~~These ~~30,~~obligations ~~2001~~relate mainly to ~~Sk423 million in~~ the ~~six~~construction ~~months~~of ~~ended~~a ~~June 30, 2002~~network. ~~Foreign~~The ~~exchange~~major ~~gains~~part ~~and~~of ~~losses~~these ~~decreased~~payments ~~from~~will ~~gain~~be ofdisbursed ~~Sk117~~within ~~million~~one inyear. ~~the~~The ~~six~~Company ~~months~~may ~~ended~~withdraw ~~June~~from ~~30,~~these ~~2001~~obligations towithout significant apenalties. ~~loss of~~

28The Company does not have any other financial liabilities that are not disclosed in the accounting books or in the balance sheet.

~~Table~~19 INFORMATION ofON ~~Contents~~MEMBERS OF STATUTORY, SUPERVISORY, ADMINISTRATIVE, MANAGERIAL AND OTHER COMPANY BODIES

~~EuroTel~~The ~~Bratislava~~income (in cash and in kind) of the members of statutory bodies as at 31 December 2001 was SKK 17,842 athousands (31 December 2000: SKK 13,652 thousands).s.

~~Sk118~~21 ~~million in the six month ended June 30, 2002 as a result~~ of ~~devaluation~~23 of the Slovak Crown against Euro, in which all our borrowings are denominated. Interest expense on borrowings decreased from Sk418 million in the six months ended June 30, 2001 to Sk378 million in the six months ended June 30, 2002 as a result of the repurchase of €15 million in long term notes in September and October 2001 and the consequent reduction in interest expense. Interest income decreased from Sk114 million in the six months ended June 30, 2001 to Sk85 million in the six months ended June 30, 2002 reflecting a decrease in investments in securities and also reflecting lower average yield on such investments.

~~Taxes. Our~~EuroTel ~~tax charge decreased by Sk42 million~~Bratislava, or 55%, from Sk77 million in the three months ended June 30, 2001 to Sk35 million in the three months ended June 30, 2002. We reported income before taxes of Sk89 million in the three months ended June 30, 2002 compared to income before tax of Sk174 million in the three months ended June 30, 2001. In addition, the non-deductible portion of bad debt expense decreased by Sk16 million from Sk5 million in the three months ended June 30, 2001 to a ~~negative Sk11 million in the three months ended June 30, 2002 due to a new tax laws in the Slovak Republic~~. Prior to January 1, 2002 the Slovak tax law allowed the debtor to claim tax benefits only after certain statutory collection requirements were complied with. Due to significant practical difficulties in pursuing such statutory requirements it was EuroTel’s ~~policy not to recognize deferred tax assets on its bad debt provision~~. The Amendment to the Income Taxes Act, effective from January 1, 2002, significantly relaxed the rules for tax benefit collection in relation to newly originated receivables. In accordance with the Amendment, 50% of the bad debt provision related to receivables due after December 31, 2001 becomes tax deductible after 2 years from the receivable due date and a tax benefit for further 25% of the receivable value can be claimed if the receivable is still unpaid after 36 months from the original due date. Recognition of a deferred tax asset arising on the bad debt provision in the first quarter of 2002 in relation to receivables within the scope of the Amendment contributed to the income tax expense reduction.

~~For the~~Notes ~~six months ended June 30, 2002 our tax charge decreased by Sk94 million, or 64%, from Sk146 million in the six months ended June 30, 2001~~ to ~~Sk52 million in~~ the ~~six months ended June 30, 2002. We reported income before taxes of Sk179 million in~~Financial ~~the~~Statements six months ended June 30, 2002 compared to income before tax of Sk381 million in the six months ended June 30, 2001. The non-deductible portion of bad debt expense decreased by Sk30 million from Sk11 million in the six months ended June 30, 2001 to a negative Sk19 million in the six months ended June 30, 2002 due to a new tax laws in the Slovak Republic.

~~Net~~For ~~Income. As a result of~~ the ~~factors~~year ~~discussed above, we reported net income of Sk54 million for the three months~~ ended ~~June~~31 ~~30,~~December ~~2002 and a net income of Sk127 million for the six months ended June 30, 2002 compared to a net income of Sk97 million for the three months ended June 30,~~ 2001 ~~and a net income of Sk235 million for the six months ended June 30, 2002.~~

2920 RELATED PARTIES

~~Table~~The ofCompany ~~Contents~~carried out transactions with the following related parties: Slovenské telekomunikácie, a.s., Deutsche Telekom, Eurotel Praha (Czech Republic), AWBV (the Netherlands), Rádiomobil (Czech Republic), DeTe Mobil (Germany), Max mobil (Austria), Westel 900 (Hungary), Omnitel (Italy), and PTC (Poland). Transactions have been carried out at arm’s length. Transactions carried out with related parties during the accounting period are shown below:

EuroTel Bratislava, a.s.

	2001 SKK ‘000	2000 SKK ‘000
Sales
Sale of services—Slovenské telekomunikácie	972,070	816,969
Sale of services to Eurotel Praha	83,361	69,963
Sale of services to other related parties	102,326	87,504
Purchase
Purchase of services from Slovenské telekomunikácie	756,741	677,098
Cost of rental payments to Slovenské telekomunikácie	41,255	38,337
Purchase of services from Eurotel Praha	33,470	34,018
Purchase of services from other related parties	53,410	48,964
Services paid to Deutsche Telekom	3,744	—
Services paid to AWBV	33,476	37,841

	31 December 2001 SKK ‘000	31 December 2000 SKK ‘000
Receivables
Trade receivables from Slovenské telekomunikácie	84,116	110,967
Trade receivables from other related parties	20,788	19,163
Liabilities
Trade liabilities to Slovenské telekomunikácie	63,676	32,549
Trade liabilities to AWBV	6,293	8,575
Other liabilities	1,728	—
Loans received from SWFC	7,483,000	7,699,300
Loans received from ST	48	1,560,108
Loans received from AWBV	32	1,498,911

~~Liquidity~~22 ~~and~~of ~~Capital~~23 ~~Resources~~

~~The telecommunications~~EuroTel ~~business requires substantial capital to construct and expand mobile and data network infrastructure and to fund operations~~Bratislava, ~~particularly during the network development stage~~a. Although our initial network build-out for GSM and managed data network services is substantially complete, we expect to incur additional capital expenditures to provide the network capacity needed to serve our increasing customer base, as well as to enhance the quality and coverage of our service offeringss.

~~EuroTel~~Notes ~~was~~to ~~awarded by~~ the ~~Telecom Office a license for the implementation and operation of a public~~Financial ~~mobile~~Statements ~~telecommunication network based on the Universal Mobile Telecommunications System standard.~~

~~The~~For ~~license became effective on July 16, 2002 and is valid through 2022, at which point EuroTel will have~~ the ~~option~~year toended ~~renew~~31 the license. EuroTel will commence providing UMTS services no later than 30 months from the date on which the UMTS frequency is released to it. EuroTel anticipates the release of the UMTS frequency to occur, in accordance with the license, no later than September 30, 2003. The cost of the license is Sk1,499 million, of which Sk500 million will be payable in mid-August 2002 and the remaining Sk999 million is due on December 2,2001 ~~2002. EuroTel will fund the payments required under the license from surplus cash carried on the balance sheet as of June 30, 2002.~~

We21 POST-BALANCE ~~believe~~SHEET ~~that~~EVENTS our capital resources will provide sufficient financing for our anticipated capital expenditures and other operating needs in the near term. However, we cannot precisely determine the amount of capital we will need to operate, because our expenditures will depend on our future performance, market conditions and other factors, many of which are beyond our control and therefore cannot be predicted with certainty.

WeThere ~~expect~~have ~~that~~been ~~our~~no ~~level~~post-balance ofsheet ~~capital~~events ~~expenditure~~that ~~will~~would ~~remain~~have a significant ~~for~~impact aton ~~least~~ the ~~three years,~~true and ~~possibly~~fair ~~longer~~view asof wethe ~~continue~~Company’s financial tostatements ~~expand network capacity, coverage~~ and ~~quality~~that inwould ~~order~~require adjustment to, ~~expand~~or ~~our~~disclosure ~~GSM~~in, ~~and~~these ~~UMTS~~financial ~~services offered~~statements.

~~Source~~Bratislava, of1 ~~Financing. Primary~~March ~~sources~~2002 ~~of financing available to us in the future consist of the following:~~

•Prepared ~~cash~~by: ~~flow~~Jana ~~from~~Sadlonová, ~~operating~~Head ~~activities;~~of Accounting department

•/s/ ~~cash~~ADRIANA ~~and~~JONÁSOVÁ ~~cash~~Adriana ~~equivalents~~Jonásová ~~carried~~Controller on/s/ ~~the~~JÁN ~~balance~~PITOŇÁK ~~sheet;~~JUDr. ~~and~~Ján Pitoňák Procurator /s/ IVAN BOšŇÁK Ivan Bošňák Acting Chief Financial Officer /s/ JOZEF BARTA Jozef Barta Chief Executive Officer / Procurator

•23 ~~investment~~ of ~~excess~~23 ~~cash in interest-bearing securities carried on the balance sheet.~~

~~The~~EuroTel ~~following~~Bratislava, ~~table~~a.s. ~~sets forth certain information concerning our historical cash flows:~~

	Six months ended June 30,
	2001		2002
Net cash flows	(millions of Slovak Crowns)
From operating activities	912		1,089
Used in investing activities	(822	)	(444	)
From financing activities	—		—

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

~~Net~~EUROTEL ~~Cash from Operating Activities. Net cash from operating activities was Sk912 million in the six months ended June 30~~BRATISLAVA, ~~2001 and Sk1,089 million in the six months ended June 30, 2002~~A. The increase in cash flow from operating activities in the six months ended June 30, 2002 resulted primarily from growth in our customer base as well as from timing differences in working capital items such as inventoriesS. InBy: ~~addition,~~/s/ ~~interest~~ROBERT ~~savings~~CHVÁTAL ofRobert ~~Sk53~~Chvátal ~~million~~Chief ~~for~~Executive ~~the six months ended June 30, 2002 as compared to the six months ended June 30, 2001 due to repurchase of the long term notes contributed to the increase in cash flow from operating activities.~~ Officer

~~Net~~By: ~~Cash~~/s/ ~~Used~~IVAN inBOŠŇÁK ~~Investing~~Ivan ~~Activities. Net~~Bošňák ~~cash~~Chief ~~used~~Financial in investing activities is driven primarily by capital expenditures and by the investment of excess cash in interest-bearing securities. Net cash used in investing activities for capital expenditures was Sk648 million in the six months ended June 30, 2001, and Sk1,048 million in the six months ended June 30, 2002. Capital expenditures included expenditures for network equipment and infrastructure, information technology and other miscellaneous items, such as computer equipment and software, motor vehicles and other new equipment and fixtures. In the six months ended June 30, 2002, approximately 63% of total capital expenditures were related to our mobile network. Net cash used in investing activities in the six months ended June 30, 2001 included the purchase of Euro-denominated EU government bonds of Sk2,403 million and proceeds from the sale of Euro-denominated EU government bonds of Sk2,230 million. In the six months ended June 30, 2002, the purchase of such Euro-denominated EU government bonds cost Sk1,795 million and proceeds from the sale of Euro-denominated EU government bonds reached Sk2,398 million. Officer

30Date: September 3, 2002

EuroTel Bratislava, a.s.

Net Cash from Financing Activities. We obtain financing from equity investments and notes issued on the international bond markets. There were no cash flows from financing activities during neither the three months nor the six months period ended June 30, 2002 or June 30, 2001.

Debt. As of June 30, 2002, our gross debt consisted of Sk7,089 million of outstanding long term senior guaranteed notes payable and the interest accrued thereon. On March 23, 2000 we issued €175 million, seven-year senior guaranteed notes at a coupon rate of 11.25%, for total net proceeds of €170.4 million. €90.5 million of the net proceeds of the offering were used to repay existing long term borrowings from third parties; the remaining net proceeds will be used to fund selected capital additions, customer acquisitions, and general corporate purposes. These notes provide, among other things, for:

• an 11.25% interest rate;

• restrictions on dividend payments, liens, and future indebtedness;

• restrictions on the sale of certain assets or merging with or into other companies, and

• restrictions on entering into transactions with affiliates.

On August 18, 2000, the SEC declared effective a registration statement we filed together with our financing subsidiary Slovak Wireless Finance Company, B.V., pursuant to which SWFC offered to exchange new notes (“New Notes”) for all then outstanding old notes issued on March 23, 2000 (“Old Notes”). In aggregate, €172.2 million of Old Notes were exchanged for New Notes. The New Notes are substantially identical in terms to the Old Notes, except that the New Notes are registered with the SEC. As of June 30, 2002, there were €2.8 million in Old Notes outstanding. As of June 30, 2002, we believe we were in compliance with all of our covenants under the Old Notes and the New Notes. Charges incurred in obtaining financing are deferred and amortized to expense over the debt service period using the effective interest method. The finance charges are included in the initial measurement of the notes. In September and October 2001, EuroTel repurchased €15 million of the long term notes in a series of open-market transactions for a net consideration of Sk687 million. EuroTel used existing liquid assets to repurchase this debt. A net loss of Sk44 million (net of deferred tax credit of Sk15 million), comprising the difference between the carrying amount of the repurchased notes and net consideration paid amounting to Sk33 million and unamortized deferred finance charges related to repurchased notes of Sk26 million, was charged to income. As a result, EuroTel’s gross debt decreased to €160 million as of October 31, 2001. There have been no changes in the debt Euro denominated principal since that date, any fluctuations reported in Slovak crowns stem from exchange rate fluctuations. A 3.6% devaluation of the Slovak crown against Euro during the six months ended 30 June 2002 caused an increase of the gross debt balance by Sk247 million from Sk6,842 million as of 31 December 2001 to Sk7,089 million as of 30 June 2002.

EuroTel Bratislava, a.s.

Contractual Obligations and Commercial Commitments. The following tables set forth certain information concerning our obligations and commitments as at June 30, 2002 to make future payments under contracts, such as debt and lease agreements, and under contingent commitments:

	Payments Due By Period
	Total	Less than 1 year	1 – 3 years	4 – 5 years	After 5 years
Contractual Cash Obligations	(millions of Slovak Crowns)
Long Term Debt(1)	7,089	—	—	7,089
Interest on Long Term Debt(1)	3,788	797	1,595	1,396	—
Capital Lease Obligations	—	—	—	—	—
Operating leases	1,441	138	247	260	796
Unconditional Purchase Obligations	476	476	—	—	—
Other Long Term Obligations	—		—	—	—
Total Contractual Cash Obligations	12,794	1,411	1,842	8,745	796

(1) Under the terms of the Notes, we are permitted to redeem all or any portion of the 11 1/4% Notes at any time on or after March 30, 2004 at face value plus a premium.

All material contracts that were in effect at the time of the filing of our Registration Statement on Form F-4 on August 18, 2000, our Form 20-F on March 28, 2001 and our Form 20-F on March 29, 2002 were filed as exhibits thereto at that time. We have not entered in any new material contractual relationship with the third party during the period from March 29, 2002 to August 9, 2002.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

In this Management’s Discussion and Analysis, and elsewhere in this Quarterly Report, we have made statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Listed below are some important factors which could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: material adverse changes in the business environment in Slovakia, such as the devaluation of the Slovak Crown, inflation levels above those in the U.S. and economic downturns; the effect of changes in the regulatory environment in Slovakia; our ability to develop new technologies and recruit and retain qualified personnel; our ability to obtain financing necessary to pursue business opportunities; and our ability to adapt to rapid technological change and significant competition. Readers are cautioned not to place undue reliance on the aforementioned forward-looking statements, which speak only as of the date hereof and EuroTel undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

EuroTel Bratislava, a.s.

Part I — Financial Information

Item 3: Quantitative and Qualitative Disclosures About Market Risk

Our primary risk exposure includes both interest rate risks and foreign exchange rate risks. As of June 30, 2002 we had Sk7,089 million and as of December 31, 2001 we had Sk6,842 million in gross debt. Our current investments totaled Sk3,157 million as of June 30, 2002 and Sk3,671 million as of December 31, 2001. The following table represents material changes in our interest rate risk as of December 31, 2001 and June 30, 2002.

	As of December 31,			As of June 30,
	2001		2001	2002		2002
	(millions of Slovak Crowns, except %)
Debt	Carrying Value		Fair Value	Carrying Value		Fair Value
Long term notes
Fixed Rate — Euro	6,842		7,492	7,089		7,514
Interest Rate	11.25	%	—	11.25	%	—

	As of December 31,		As of June 30,
	2001	2001	2002	2002
	(millions of Slovak Crowns, except %)
Current Investments	Carrying Value	Fair Value	Carrying Value	Fair Value
Government Bonds
Fixed Rate — Euro	3,671	3,680	3,157	3,151
Interest Rate	3.23%-4.42%	—	3.23%-3.76%	—

The December 31, 2001 and June 30, 2002 fixed-rate Euro-debt consists exclusively of the senior guaranteed notes we issued on March 23, 2000 and August 18, 2000. The fair value is based on the market price at June 28, 2002. The senior guaranteed notes mature on March 30, 2007. Interest on the senior guaranteed notes is payable semiannually in arrears, on March 30 and September 30 of each year, respectively, commencing on September 30, 2000.

In September and October 2001, EuroTel repurchased €15 million in senior guaranteed notes in a series of open-market transactions. In accordance with IAS 39, the related liability was derecognized in EuroTel’s consolidated balance sheet. EuroTel used existing liquid assets to extinguish the debt. A net loss of Sk44 million (net of a deferred tax credit of Sk15 million), which consisted of the difference between the carrying amount of the repurchased notes and the net consideration paid of Sk33 million as well as the unamortized deferred finance charges related to repurchased notes of Sk26 million, was charged to income.

Our current investments include short-term Euro-denominated EU government bonds, whose fair value is approximately the same as market value. The bonds mature in periods ranging from one to eight months from the balance sheet date of June 30, 2002.

As of June 30, 2002, all of our current investments and Sk7,089 million of our debt were denominated in Euros. To the extent that we engage in transactions and borrowings in currencies other than the Slovak Crown, we will be exposed to currency exchange risk. For the six months ended June 30, 2002 we had incurred Sk118 million in foreign exchange losses, as compared to Sk117 million in foreign exchange gains incurred for the six months ended June 30, 2001, as a result of fluctuation in currency exchange rates.

EuroTel Bratislava, a.s.

The sensitivity to changes in exchange rates of our foreign currency position was determined using current market pricing models. We estimate that a 10% appreciation or devaluation in the foreign exchange rate of the Euro against the Slovak Crown at June 30, 2002 would have changed the combined fair value of the facility and of current investments by Sk317 million.

We have considered the possibility of entering into transactions to reduce exposures to market risks resulting from fluctuations in foreign exchange rates. However, there can be no assurances that we will engage in hedging transactions or that, if we were to do so, these transactions would successfully mitigate our risk. Despite the potential favorable outcome that such transactions could have, it may not be feasible or desirable for us to do so, as the costs could far exceed the possible benefits. As a result, changes in the exchange rate could have a material adverse effect on our ability to pay off non-Slovak Crown-denominated indebtedness.

EuroTel Bratislava, a.s.

Part II — Other Information

Item 1: Legal Proceedings

We are not aware of any material pending or threatened litigation against EuroTel.

We have filed a number of claims against former customers for amounts owed to EuroTel for services rendered. As of June 30, 2002, the total amount of outstanding claims was Sk208 million. We do not expect to recover any material amounts in connection with these claims.

Item 2: Changes in securities and use of proceeds

None.

Item 3: Defaults upon senior securities

None.

Item 4: Submission of matters to vote of security holders

None.

Item 5: Other information

At a meeting held on April 25, 2002, EuroTel’s Board of Directors appointed Robert Chvátal as Chief Executive Officer (“CEO”). Robert Chvátal succeeded Jozef Barta, who resigned as CEO to pursue other professional interests. On the same date, EuroTel’s Board of Directors also announced the appointment of Ivan Bošňák, then Acting Chief Financial Officer, as Chief Financial Officer.

The Board of Directors resolved on April 2002 that, upon his resignation as CEO, Jozef Barta would be entitled to a severance package consisting of Sk8.8 million in cash as well as the right to purchase a company car and certain PC equipment, which resulted in a charge to the Company in the amount of Sk0.5 million. Mr. Barta was permitted to pay the purchase price of Sk0.8 million for the company car in installments, of which 33% have been paid to date. Two installment payments totaling Sk0.5 million in the aggregate remain outstanding and shall become due as of mid-September and mid-October 2002.

Prior to being appointed as EuroTel’s CEO, Mr. Chvátal served as marketing director at RadioMobil in the Czech Republic and sat on RadioMobil's Board of Directors from April 1997 to April 2002. Prior to his appointment to RadioMobil, Mr. Chvátal worked as Marketing Manager for fragrances at Margaret Astor in the Czech Republic and later served as Marketing Director and member of the company’s Board until April 1997. From 1992 to 1994, Mr. Chvátal worked at Procter & Gamble in brand management. Mr. Chvátal graduated from The Prague School of Economics in 1992.

Effective July 1, 2002 EuroTel’s sales and marketing division was split into two divisions: a sales division and a marketing division. Fred Wohl remained Director of Sales and Milan Vašina was newly appointed as Director of Marketing.

Milan Vašina joined EuroTel in July 2002 as Director of Marketing. From 1997 until he joined us, Mr. Vašina worked at RadioMobil in the Czech Republic as Manager for Marketing Communications from 1997 to 2000 and as Marketing Manager for the residential segment from 2001 to July 2002. Prior joining RadioMobil, Mr. Vašina worked at RJ Reynolds as Group Brand Manager for the Camel brand and at Benckiser as Group Brand Manager. Mr. Vašina graduated from The Brno University of Agriculture, Faculty of Economics in 1993.

Item 6: Exhibits and reports on Form 8-K

(a) Exhibits

None.

(b) Reports on Form 8-K

None.

EuroTel Bratislava, a.s.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: August 14, 2002	EUROTEL BRATISLAVA, A.S.
	By:	/S/ ROBERT CHVÁTAL
		Robert Chvátal Chief Executive Officer
	By:	/S/ IVAN BOŠŇÁK
		Ivan Bošňák Chief Financial Officer

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