Eurotel Becomes Telefonica O2

[Effendi]

Cesky Telecom To Join Forces With Eurotel

LONDON -(Dow Jones)- Cesky Telecom said Wednesday that a new integrated telecommunications operator Telefonica O2 Czech Republic, a.s. is to be formed.

Wednesday the Board of Directors and the Supervisory Board of Cesky Telecom, a.s. approved an intention to integrate Eurotel Praha, spol. s r.o., and Cesky Telecom, a.s., into a new telecommunications player, Telefonica O2 Czech Republic, a.s. designed to benefit from the know-how and expertise of Eurotel, Cesky Telecom, Telefonica, and O2.

The integrated company will provide both immediate and long-term benefits to its customers.

The board of Cesky Telecom will ask the General Meeting, planned for April 2006, to approve the integration and to adopt the company's new name Telefonica O2 Czech Republic, a.s.

The integrated organization is expected to become effective in mid-2006 after all required preparatory and legal steps have been completed, the company said.

The new integrated entity will be led by the current CEO of Cesky Telecom, Jaime Smith, who will supervise an organization consisting of integrated Business segment and consumer segment, merged operations division including IT and networks, and consolidated general support functions.

(END) Dow Jones Newswires