Ad-hoc | 29 July 1999 07:59

Ad hoc-Service: Deutsche Telekom AG

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Ad hoc notification by Deutsche Telekom AG pursuant to paragraph 15 of the Security Trading Act (WpHG) Bonn, July 29, 1999 Deutsche Telekom Group Preliminary key figures for the first half of 1999 (January 1, 1999 to June 30, 1999) – Largest capital increase in international financial history completed successfully – Income at same level as in 1998 despite decrease in revenue in fixed-network communication – Continued reduction of staff levels and financial liabilities – T-Mobil, T-Online and T-ISDN: the boom continues Deutsche Telekom AG announces a preliminary indication of the corporate group’s results for the first half of the 1999 financial year. Deutsche Telekom emphasizes that these results are only initial results on the basis of current information. Deviations may arise between these figures and the audited figures which are to be published on August 25, 1999. Revenue and Net Income, January 1 to June 30 Billions of EUR 1st half of 1999 1st half of 1998 Change Revenue 16.7 17.6 * -5 percent Consolidated net income 0.950 0.996 -4.5 percent * figure includes revenues amounting to Euro 110 million from billing services for competitors which were no longer included in the revenue figure in 1999. The substantial tariff cuts introduced to stabilize market share in Germany resulted in a decrease in revenue from fixed-network communications compared with the same period last year. This decrease was not compensated by the continued boom in mobile communications, ISDN lines and the online business. The revenue generated by the Austrian company max.mobil, in which the Deutsche Telekom Group now holds a majority stake, amounted to Euro 280 million and is included in the figures for the first half of 1999 for the first time. Net income of the Group remained at approximately the same level as in the first half of 1998 despite the decrease in revenue and the costs of the capital increase amounting to almost Euro 200 million. The extension of depreciation periods undertaken at the beginning of the year for the cable and conduits as well as a lower effective tax rate than in the previous year contributed to this development. In addition, the positive trends in interest expenses and results from associated and related companies continued Employees and debt 30.06.99 30.06.98 Change Change in percent Personnel (excluding Matav / max.mobil) 174,000 186,200 -12,200 -7 percent Financial liabilities (excluding Matav / max.mobil) in billions of EUR 37.9 43.8 -5.9 -13 percent * including loan notes On June 30, 1999, the number of employees in the Deutsche Telekom Group (excluding Matav and max.mobil) was reduced by approximately 12,200 to approximately 174,000 compared with the figure at June 30, 1998. The number of employees was reduced in a socially acceptable manner by approximately 5,100 between January 1 and June 30, 1999. Financial liabilities (excluding Matav and max.mobil) were reduced according to plan by Euro 5.9 billion to approximately Euro 37.9 billion at June 30, 1999. In the Deutsche Telekom Group (including Matav and max.mobil), financial liabilities now amount to Euro 39.2 billion. Balanced against cash and cash equivalents, the net financial liabilities of the Group amounted to Euro 26.5 billion at June 30, 1999. The proceeds from the capital increase do not include the cash from the execution of the greenshoe option. Customer trends for selected services in millions June 30, 1999 June 30, 1998 Change Change in millions in percent * Telephone lines (incl. ISDN channels) 47.2 45.8 1.4 3 percent of which: ISDN channels total 11.7 8.7 3.0 35 percent of which: residential customers 5.0 3.1 1.9 59 percent business customers 6.7 5.6 1.1 21 percent T-Online customers 3.3 2.3 1.0 46 percent Mobile telephony customers (T-D1 and T-C-Tel) 7.1 4.6 2.5 56 Percent of which: T-D1 6.8 4.1 2.7 64 percent * the percentages are based on exact amounts in millions. The positive development of Deutsche Telekom’s growth drivers continued in the first six months of 1999. The strongest growth was recorded in the area of mobile communications. The number of T-D1 customers grew by 64% compared with the same period in 1998 to 6.8 million. With a total of 3.3 million online customers, Deutsche Telekom has further extended its position as the leading Internet service provider in Europe. The number of customers has grown by approximately 1 million since June 30, 1998. This boom was supported by the new T-Online tariffs Compared to international competitors, Deutsche Telekom has a unique penetration rate of around 25 % of all telephone lines, which corresponds to 11.7 million ISDN channels. This strong growth rate is expected to continue in the future, especially in the residential customer segment. With the exception of historical information, the matters discussed in this release are forward-looking statements that involve risks identified in filings with the U.S. Securities and Exchange Commission. End of release Ende der Mitteilung