Ad-hoc | 14 February 2005 12:46

United Internet AG: Record figures for sales, earnings and customer contracts

Ad hoc announcement §15 WpHG Preliminary results for the fiscal year 2004 United Internet AG: Record figures for sales, earnings and customer contracts Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— United Internet closes fiscal year 2004 with record figures for sales, earnings and customer contracts Montabaur, February 14, 2005. The Management Board of United Internet today announced preliminary results according to US-GAAP for the fiscal year 2004. The figures feature record levels of sales, earnings and customer growth. According to the preliminary results, consolidated sales of United Internet AG grew by 23 percent to EUR 509.5 million in fiscal 2004 (prior year: EUR 415.0 million). Despite increased costs for the company’s foreign expansion and its own DSL connection products, there was also encouraging growth in key earnings ratios: Preliminary earnings before taxes (EBT) rose by 32 percent to EUR 85.5 million (prior year: EUR 64.8 million). The Management Board has decided to propose to the Supervisory Board the distribution of a dividend of 20 Cent per share (prior year: 15 Cent per share) to be paid out of net income for 2004. In may 2005 the Annual General Meeting will decide about the common proposal of the Management Board and the Supervisory Board. The number of fee-based customer contracts as of December 31, 2004 grew to 3.5 million (prior year: 2.8 million). This figure includes 1.05 million DSL contracts, representing growth of 400,000 DSL contracts compared to the prior year or 62 percent. The marketing of the company’s own DSL connections also got off to a successful start: Over 200,000 DSL connections have been sold since the launch on July 12, 2004. United Internet AG has decided to draw up its consolidated financial statements for fiscal 2004 already according to International Financial Reporting Standards (IFRS) – formerly IAS (International Accounting Standards). This will lead to deviations compared with US-GAAP, especially with regard to the reporting of goodwill, as the change in accounting must be made retrospectively. This means that a goodwill item which was not impaired according to US-GAAP, and thus no longer amortized, is to be written down retrospectively and in scheduled amounts under IFRS. The effect of this change in the accounting standard is one-off, as under IFRS from 2005 annual goodwill amortization will be replaced by the impairment test, which is also the chosen method under US GAAP. The audited figures for fiscal 2004 and the reconciliation from US-GAAP to IFRS will be presented during the annual report press conference on March 17, 2005 in Frankfurt. United Internet AG Elgendorfer Str. 57 56410 Montabaur Deutschland ISIN: DE0005089031 (TecDAX) WKN: 508903 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 14.02.2005 141246 Feb 05