Ad-hoc | 8 February 2002 19:17

QSC AG correction

Correction: QSC boosts revenues in 2001 Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Corrected announcement on behalf of the issuer: In today’s announcement, 7.30 a.m. CET, the second paragraph, third sentence, instead of: “The company’s cash usage improved significantly in the fourth quarter of 2 0 0 0, to EUR -22 million, or by approx. 37 percent relative to the preceding quarter (EUR -35.5 million).” it must read: “The company’s cash usage improved significantly in the fourth quarter of 2 0 0 1, to EUR -22 million, or by approx. 37 percent relative to the preceding quarter (EUR -35.5 million).” The complete corrected announcement is: QSC boosts revenues in 2001 – Sales more than quadrupled to EUR 28 million – EBITDA approx. EUR -85 million – Significant improvement of cash usage – Rapid growth in revenues to continue in 2002 Cologne, February 8, 2002. QSC AG (Neuer Markt: QSC; Nasdaq: QSCG), Germany’s leading alternative DSL provider, generated sales of EUR 8.5 million in the fourth quarter of 2001 (Q4 2000: EUR 3.3 million), continuing the dynamic growth trend established in preceding quarters. Total sales in 2001 increased to more than EUR 28 million (2000: EUR 5 million). As at December 31, 2001, QSC had sold a total of 32,973 lines, 22,866 of which generated revenue in the course of the 2001 business year. The EBITDA loss came in at EUR -85 million (2000: EUR -79.4 million). For the fourth quarter of 2001, the EBITDA loss was around EUR -20 million (Q4/2000: EUR -35.4 million). The company’s cash usage improved significantly in the fourth quarter of 2001, to EUR -22 million, or by approx. 37 percent relative to the preceding quarter (EUR -35.5 million). Indeed, compared to the first quarter of 2001, the negative cash flow figure was reduced by half (Q1 2001: EUR -44.2 million). This positive trend is attributable to a variety of factors, above all the optimization of margins, improvements to the product mix, as well as strict management of costs. As at December 31, 2001, the company had cash and cash equivalents of more than EUR 153 million. QSC expects revenues for the current business year to reach EUR 46-54 million, and the EBITDA figure to be in a range between EUR -60 and -70 million. In view of the steady improvement in cash flow, the management team reiterates its guidance for 2002 and the years ahead. The company has sufficient cash and cash equivalents to reach break-even on an EBITDA basis in the course of 2003, as well as positive cash flow during 2004. For further information: Investor Relations partner of QSC AG Schumachers AG Dorothee Kagelmann Tel.: +49 (0)89/4892720 Fax: +49 (0)89/48927212 Mail: qsc@schumachers.net end of ad-hoc-announcement (c)DGAP 08.02.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Notes : This Adhoc annoucement contains forward-looking statements pursuant to the US “Private Securities Litigation Act” of 1995). These forward-looking statements are based on current expectations and forecasts of future events by the management of QSC AG. Due to risks or mistaken assumptions, actual results may deviate substantially from those made in such forward-looking statements. The assumptions that may involve material deviations due to unforeseeable developments include, but are not limited to, the demand for our products and services, the competitive situation, the development, dissemination and technical performance of DSL technology and its prices, the development and dissemination of alternative broadband technologies and their respective prices, changes in respect of telecommunications regulation, legislation and adjudication, prices and timely availability of essential third-party services and products, the timely development of additional marketable value-added services, the ability to maintain and enlarge upon marketing and distribution agreements and to conclude new marketing and distribution agreements, the ability to obtain additional financing in the event that management’s planning targets are not attained, the punctual and full payment of outstanding debts by sales partners and resellers of QSC AG, and the availability of sufficient skilled personnel. ——————————————————————————– WKN: 513700; ISIN: DE0005137004; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 081917 Feb 02