PRAGONET, a.s. today announces that it is to issue an

invitation to tender for the subscription of new shares in PRAGONET. The tender will be open to telecommunications companies with proven operating experience in providing advanced telecommunications services. PRAGONET is looking for a strategic partner who will assist in accelerating the expansion of PRAGONET's customer base, services and network coverage. PRAGONET owns and operates a state-of-art, fibre optic Metropolitan Area Network in Prague. It was established by the City of Prague in 1996 to provide network capacity for internal municipal IT systems and to offer broadband services on a commercial basis to other public bodies and large private enterprises. In 1998 the company traded profitably with about 30% of revenues coming from the City and 70% from third party public and private sector customers. PRAGONET a.s.'s high capacity backbone network is located in the tunnels of Prague's underground transport. It is nearly 60 kilometres in length and connects all major districts of Prague. The access network is located in existing ducts or buried directly in the ground and is over 50 km in total. The PRAGONET digital transmission system has been built using the latest digital SDH, PDH and ATM technologies. The PRAGONET network is currently interconnected with several public and private telecommunications networks enabling the company to deliver services directly or indirectly well beyond the area covered by the PRAGONET itself. PRAGONET provides 64kb/s to 155Mb/s leased digital circuit services and broadband LAN-to-LAN services for local area network interconnection. PRAGONET also provides fixed line and dial up access to the Internet and other Internet related services. PRAGONET's net assets as at the 31 December 1998 were approx. CZK150 million. The management estimates that an investment in excess of CZK750 million will be needed over the next three years to exploit PRAGONET's full potential in Prague's fast developing telecommunications market. Further information about qualification and tender procedures may be obtained from PRAGONET (alt. Management In Industry Ltd.) on fax number +420 2 72125999 (alt.+ 44 171 495 6011). PRAGONET,a.s. 21 July 1999 Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents.