METROMEDIA INTERNATIONAL TELECOMMUNICATIONS

Metromedia International Telecommunications, Inc. (MITI) operates four lines of business in Eastern Europe, the republics of the former Soviet Union, and other emerging markets. The four major lines of business are: Cable Television ; Paging ; AM/FM Radio ; and Telephony, which includes Cellular Telecommunications, International Toll Calling, Fixed Telephony, and Trunked Mobile Radio.

The desire of governments to establish market driven economies, combined with the lack of telecommunications infrastructure continues to provide MITI with a significant opportunity. MITI is capitalizing on this opportunity by implementing systems with local partners and by constructing the necessary telecommunications services to provide a communication path to the Western world.

MITI's management has substantial experience in the various telecommunications fields in which it operates. Members of MITI's senior management were directly responsible for operating some of the earliest wireless cable (MMDS) television stations, FM Radio networks, and the first non-wireline cellular systems in the United States.

MITI's list of ventures covers populations exceeding 120 million people. The number of operating ventures grew to 44 in 1998.

The operating expertise of management, combined with the knowledge and experience of MITI's partners has led to exceptionally successful growth in key parameters of these businesses. Tracking subscriber growth, revenue growth, and operating cash flow (EBITDA) for each of the businesses in which MITI participates provides a clear indication of the effectiveness of MITI's implementations.

MITI's subscriber growth comes from internally generated activities and acquisitions. MITI's decision to buy or build systems is based upon the availability of subscriber networks and their associated costs. MITI generally acquires subscriber networks only when the cost of acquisition is equal to or less than the cost of internal generation.

Subscriber growth has been consistent over the years by our marketing to different segments of the marketplace. This growth has led to increased revenues.

EBITDA has increased dramatically. The telecommunications service businesses are characterized by significant up-front investments followed by an increasing revenue stream as customers are added, with the corresponding cost base rising at a slower pace than revenues.

MITI personnel are organized into four separate operating groups, which correspond with MITI's four lines of business:

By recognizing opportunity early in the growth cycle of Eastern Europe and the republics of the former Soviet Union, by attracting the right management, and by utilizing Western marketing techniques, including cross-marketing in all our multiple service markets, the founders of MITI have established the company as one of the largest and most successful telecommunications service companies in the region.