TDE.L Regulatory News (TDE)

14 Apr 2008 16:25

Telefonica O2 Czech Republic, A.S.14 April 2008 Press release Telefonica O2 protests execution law at Constitutional Court Date: 14. 4. 2008 Telefonica O2, one of the most prominent companies on the Czech market, filed aconstitutional complaint to cancel a section of execution law. The reason liesprimarily in the fact that the value of the property blocked during execution isa wholly unreasonable amount. The execution law concerns the disposal of a property's entire debt except itsadministration and normal commercial activities. This restriction is validthroughout the full duration of the execution, even after the executor hasselected and holds a specific part of the property liable. This has become thesubject of the constitutional complaint, which, in its extent, extends to theinterests of Telefonica O2 itself. The complaint is one of the steps attendant in a legal dispute with T-Mobile,which abused imperfections in the law and prematurely began an execution againstTelefonica O2, in defiance of the fact that a decision had not been reached inthe original legal dispute. In spite of the fact that Telefonica O2 regards theexecution as illegal, the company has decided to take steps to ending it. "The dispute itself is not closed and will continue. The company wants to beflexible in the execution of all business transactions. Therefore, we havedecided to cover the disputed amount and thus put an end to the prematureexecution that T-Mobile has been carrying out in an effort to damage ourcompany," states Jakub Chytil, member of the Board of Directors of TelefonicaO2, adding, "The disputed amount is CZK two billion, but the blocked property ofthe company far exceeds this amount and it is clear that such a restriction iscompletely inadequate." The above-mentioned commercial transactions include, for instance, advice on thesale of properties that Telefonica O2 wants to carry out in the near future. For more information, please contact:MARTIN ZABKASpokespersontel: + 420 271 463 359e-mail: public.relations.cz@o2.com http://www.cz.o2.com/ About Telefonica O2 Czech Republic Telefonica O2 Czech Republic, a.s., is the first integrated operator in theCzech Republic, formed on 1 July 2006 by the merger of the leading fixed lineoperator, CESKY TELECOM, a.s., and the strongest mobile operator, Eurotel Praha,spol. s r.o., into a single telecommunications organization. The organization isnow operating more than seven million lines, both fixed and mobile, making itone of the world's leading providers of fully converged services. Telefonica O2 Czech Republic offers the most comprehensive portfolio of voiceand data services in this country. Special attention is paid to the exploitationof growth potential, particularly in the data and Internet sector. Telefonica O2Czech Republic operates the largest fixed and mobile network, including a 3rdgeneration network, CDMA (for data), and UMTS, enabling voice, data, and videotransmission. Telefonica O2 Czech Republic also runs the largest network of WiFihotspots in the country. About Telefonica O2 Europe Telefonica O2 Europe comprises mobile network operators in the UK, Ireland, andSlovakia, along with integrated fixed/mobile enterprises in Germany and theCzech Republic - all of which use 'O2' as their consumer brand. Telefonica O2Europe also owns 50% of the Tesco Mobile and Tchibo Mobilfunk joint venturebusinesses in the UK and Germany, respectively, and has 100% ownership of Be,the UK's leading fixed broadband provider. Additionally, the group includes theIsle of Man fixed/mobile operator, Manx Telecom. Telefonica O2 Europe, part of the Telefonica group, is headquartered in Slough,UK, and has more than 40 million mobile and fixed customers. About Telefonica Telefonica is one of the world's largest telecommunications operators by marketcapitalisation. Its activities are centred mainly on the fixed and mobiletelephony businesses, while its broadband business is the key growth driverunderpinning both. It operates in 24 countries and its customer base exceeds 228 million globally.Telefonica's growth strategy is focused on the markets in which it has a strongfoothold: Spain, Europe and Latin America. This information is provided by RNS The company news service from the London Stock Exchange