Ad-hoc | 27 July 2000 07:38

Ad hoc-Service: Deutsche Telekom AG English

Ad-hoc announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— Ad hoc notification by Deutsche Telekom AG in accordance with Section 15 of the Security Trading Act (WpHG) Bonn, July 27, 2000 Deutsche Telekom Group Preliminary key figures for the first half of the financial year 2000 (January 1, 2000 to June 30, 2000) – Group revenue EUR 2.5 billion higher than in first half of 1999 – Net income increased to EUR 4.3 billion as a result of special influences, more than 3.5 times as high as in the first half of 1999 – Deutsche Telekom’s third share issue 3.5 times oversubscribed and completed successfully – Global bond of US-Dollar 14.6 billion successfully floated – Deutsche Telekom increases stake in Hungarian carrier Matav to 60 percent Deutsche Telekom AG announces a preliminary indication of the corporate group’s results for the first half of the 2000 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 29, 2000. Revenue and net income from January 1 to June 30, 2000 Billions of EUR 1st half 2000 1st half 1999 Change in percent Revenue 19.3 16.8 + 15 on comparable basis 17.8 16.8 + 6 Net income on comparable basis 0.7 0.95 – 26 change in the composition of the Deutsche Telekom Group – 0.9 – N/A. Special influences 4.5 – N/A. Consolidated 4.3 0.95 + 353 Revenue increased compared to the first half of 1999 by EUR 2.5 billion to EUR 19.3 billion. Of this increase, approximately EUR 1.5 billion was attributable to One 2 One, Club Internet and SIRIS, which, compared to the same period last year, were consolidated for the first time in the period under review. In addition, Deutsche Telekom AG has taken over the majority stake in the Hungarian carrier Matav Rt and thus increased ist stake to 59.53 percent. The revenue increase excluding newly consolida- ted companies totaled EUR 1.0 billion, or approximately 6 percent higher than in the first half of 1999. Net income was 3.5 times as high as in the same period last year. This increase is primarily attri- butable to special influences, such as the tax-free sale of the stake in Global One in the first quarter of the year with a positive contribu- tion to net income of EUR 2.9 billion and the proceeds from attracting new shareholders in the course of the T-Online initial public offering (EUR 2.7 billion). The special influences already include the special depreciations and losses from the disposal of assets from the first quarter of 2000, as well as the additional transfers to accruals. The companies consolidated for the first time had a negative effect amoun- ting to EUR 0.9 billion on the results for the first half of the year. This is largely the result of the amortization of goodwill. The de- crease in net income on a comparable basis by approximately EUR 0.2 billion is mainly due to the continued high level of growth in the number of mobile communications subscribers and the resulting subscriber acquisition costs. Personnel June 30, Dec. 31, June 30, June 30, 2000/ June 30, 2000/ 2000 1999 1999 Dec. 31, 1999 June 30, 1999 DTAG 133,128 136,962 147,899 – 3,834 – 14,771 Group 195,700 195,788 192,046 – 88 + 3,654 The number of employees in the Group remained very much constant compared to the level at the end of 1999. A reduction by approximately 3,800 at Deutsche Telekom AG was offset by increases in newly consoli- dated companies and in growth areas. Therefore, on the basis of the increased revenue and the practically constant number of employees, the per-capita productivity of the Group increased. Debt Billions June 30, Dec. 31, June 30, June 30, 2000/ June 30, 2000/ of EURO 2000 1999 1999 Dec. 31, 1999 June 30, 1999 Group 49.9 42.3 38.7 + 7.6 + 11.2 Gross financial liabilities increased to EUR 49.9 billion at the end of June 2000, compared with EUR 42.3 billion at December 31, 1999. This increase is mainly attributable to the issue of medium term notes amounting to ca. EUR 2.4 billion by Deutsche Telekom International Binance BV and the financing of the UMTS license at One 2 One, which accounted for EUR 5.7 billion. The proceeds from the flotation of the global bond of US$ 14.6 billion will be shown in the third quarter of 2000. Customer trends for selected services June 30, Dec. 31, 30 June, June 30, 00/ June 30, 00/ 2000 1999 1999 Dec. 31, 99 June 30, 99 million million million in percent in percent mobile subscribers (excl. C-Tel) 22.6 15.7 11.3 44 100 of which: T-D1 13.4 9.1 6.8 47 97 One 2 One 6.1 4.2 2.6 45 135 max.mobil. 1.8 1.5 1.1 20 64 Westel* 1.3 0.9 0.8 44 63 T-Online subscribers 6.0 4.2 3.3 43 82 Telephone lines 48.5 47.8 47.2 1 3 of which: ISDN 15.3 13.3 11.7 15 31 Residential customers ** 7.0 6.0 5.0 17 40 Business customers ** 8.3 7.3 6.7 14 24 * held directly and indirectly by MATAV ** In 2000, small and medium-sized enterprises were reclassified under business customers The area of mobile communications recorded subscriber growth of almost 7 million new subscribers in the first half of 2000. In Germany alone, the number of T-D1 subscribers increased by 4.3 million. As such, considerably more subscribers were acquired in the first half of 2000 than in the whole of 1999. Overall, Deutsche Telekom’s mobile communi- cations companies gained more than 1 million subscribers per month in the first half of 2000. Already, over 40 percent of the mobile communications subscribers are outside Germany. With 6 million subscribers and above-average growth, T-Online extended its European market leadership. The total usage of the online service also increased considerably. Almost a third of all telephone lines are now ISDN lines, compared with a penetration rate of approximately 28 percent at the end of 1999. 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 Message