Financial Results 2004

Deutsche Telekom continued its growth course in the third quarter of 2004 while substantially increasing profitability. Based on this positive trend in the first nine months of 2004, the Board of Management further substantiated its expectations for the full year and, in some cases, increased them considerably. Net income will be around EUR 3.2 billion, compared with the previous target of EUR 2.5 billion. Based on this expectation, the Board of Management is aiming to pay a dividend of EUR 0.62 for the 2004 financial year.

Deutsche Telekom AG released its results for the first half year of 2004 on August 12.

The Group expects significant increase in net income. In organic terms, excluding changes in the consolidated group and exchange rate fluctuations, net revenue increased by around 7.4 percent in the first 6 months of 2004.

Reported net revenue was up by 4.4 percent to approximately EUR 28.4 billion. Group EBITDA increased by 11.0 percent year-on-year from EUR 9.6 billion to EUR 10.7 billion with adjusted EBITDA up by 3.2 percent to EUR 9.4 billion.

Deutsche Telekom AG released its results for the first three months of 2004 on May 13. Revenues climbed 2.7 percent year-to-year to almost 14 billion euros. The Group continued its profitable growth in the first quarter of the year despite a difficult competitive and regulatory environment, particularly in Germany.

Organic growth was even stronger at 7.5 percent overall. Adjusted EBITDA grew by 2.4 percent to 4.6 billion euro. Here, too, organic increases were even more marked at 6.2 percent.

Adjusted profit doubled to 227 million euro compared with the first quarter of 2003, despite the fact that the Group even though 148 million euros were reserved for possible impending losses from the Toll Collect project. Free cash flow grew substantially to 2.9 billion euros for the quarter, compared to just 2 billion euros a year ago. Net debt was cut by another 2 billion euros since the end of 2003, to 44.6 billion euros.

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