Financial Results 2005

Deutsche Telekom has continued on the path to meeting Group targets in the first nine months of 2005. Compared with the prior-year period, revenue in the first nine months of 2005 increased by 3.6 percent to EUR 44.2 billion; adjusted EBITDA exceeded this growth, rising by five percent to EUR 15.6 billion. Our target of achieving adjusted EBITDA of between EUR 20.7 billion and EUR 21.0 billion for the full year was reaffirmed through the results of the first nine months of 2005.

Deutsche Telekom AG presented its results for the first half-year of 2005 on August 11.

Deutsche Telekom increased its profitability further in the first half of 2005. While the net revenue of the Group increased by 3.0 percent year-on-year to EUR 29.1 billion in the first half of 2005, adjusted EBITDA improved by 5.7 percent to EUR 10.1 billion, taking adjusted EBITDA at the end of the half-year past the EUR 10 billion mark for the first time.

Deutsche Telekom AG presented its results for the first three months of 2005 on May 12. Net revenue in the Group increased by 3.5 percent, from EUR 13.9 billion to EUR 14.4 billion with about 40 percent of Deutsche Telekom's revenue being generated outside Germany in Q1 2005.

With the 2005 first quarter report, Deutsche Telekom has switched its financial reporting from GAAP to IFRS (International Financial Reporting Standards) for the first time.

Deutsche Telekom has converted its financial reporting to IFRS (International Financial Reporting Standards) starting with the report for the first quarter of 2005. In accordance with a regulation of the European Parliament and Council, listed companies within the European Union are obliged to prepare their consolidated financial statements in accordance with IFRS as of January 1, 2005. IFRS will replace German GAAP in Deutsche Telekom's external reporting.

We have drawn up a detailed reconciliation report and a presentation to explain the conversion to the new accounting methods and the main effects this will have.