2005 proved T-Mobile is on the right way

• T-Mobile succesfully challenged its competitor
• Excellent financial results - growth in revenues and EBITDA
• The share of non-voice services in revenues keeps increasing
• Innovative services brought into the Czech Republic

Prague, 2 March 2006 - The year 2005 brought two primacies for T-Mobile. In the first half of the year, the operator broke its´ competitor leadership in number of active SIM cards, on October 19, it launched first UMTS in Czech Republic. The emphasis on increasing efficiency has been reflected in the significant improvement of key financial indicators, such as revenue growth (by 6%) and EBITDA (by 5.3%). With its share in total revenues per one customer at 21 %, the use of non-voice services is becoming more and more significant.

In comparison with 2004, the number of customers grew by almost 6.3.% to 4.634 million. The contract customer base increased significantly, growing by more than 16% year-on-year to 1.288 milion. At the end of the last year, more than 3.347 million customers were using Twist cards.

In 2003, T-Mobile announced its target to become Number One in the Czech mobile market within the following four years, both in terms of customer numbers and financial indicators. "Last year we proved we are ready to achieve it," says Roland Mahler, Managing Director of T-Mobile Czech Republic, adding: "The 2005 figures give the evidence we are on the right way."

In 2005, T-Mobile reported excellent financial results: total revenues exceeded CZK 27.9 billion, net profit exceeded the mark of CZK 4.9 billion, and the important EBITDA indicator (earnings before taxes, interest, depreciation and amortization) grew by 5.3 % in comparison with the year 2004 to 12,2 billion. The aforesaid financial results thus clearly show that the effort to increase efficiency has paid off and is reflected very positively in the overall financial indicators.

In 2005, T-Mobile put great effort into development of data services. By the end of the year, EDGE coverage has been extended to more than 1000 towns and villages which means nearly a half of Czech population can utilize the advantages of the technology. On October 19, 2005, T-Mobile launched the first Czech UMTS service. Internet 4G based on the TDD standard offers in Prague an ADSL - like Internet access, combined with the added value of nomadic mobility. In doing so, TMCZ complies with the clear trend that data services become more and more popular with customers. For example, the monthly volume of data transmitted has more than doubled compared with the year 2004. One of the most innovative services introduced in 2005 was "TV in your pocket" - the first digital TV with interactive features available in mobile phones.

"In 2005 we strove to prove to our customers our mobile network can offer a full-fledged substitute for fixed networks both in voice and data services," Roland Mahler comments adding: "The customers´ interest in Pevná+ or data services give the evidence it is the right strategy."

The interest of business customers in T-Mobile services continued to grow in 2005; among the new customers of the biggest mobile operator in the Czech Republic are companies and institutions such as General Health Insurance Company (Všeobecná zdravotní pojišťovna), Ministry for Regional Development, Air Navigation Services (Řízení letového provozu), Baťa, Linde Technoplyn, TCHAS-SERVIS a.s., VZP ČR, LINDE GAS a.s., Policie ČR - Správa hlavního města Prahy, ČSAD Ostrava a.s., Pfizer s.r.o., or SCANIA CZECH REPUBLIC s.r.o.

2005 in figures:

	2005	2004	Change in %
Penetration (%)	111.2	102.8	8.2
Number of customers (´000)	4,634	4,360	6.3
Contract customers	1,288	1,105	16.6
Twist customers	3,347	3,255	2.8
New customers* (´000)	274	413	(33.6)
Contract customers	183	216	(15.1)
Twist customers	91	197	(53.8)
Total revenues (CZK mil.)	27,915	26,347	6.0
ARPU revenues incl. visitors	25,841	24,636	4.9
Net profit (CZK mil.)	4,967	4,398	12.97
EBITDA (CZK mil.)	12,232	11,615	5.3
EBITDA margin - total revenues (%)	43.7	44.0	(0.3)p
EBITDA margin - ARPU revenues (%)	47.2	47.1	0.1p
ARPU incl. visitors (CZK)	482	503	(4.2)
Non-voice ARPU (%)	21	20	1p

Financial results according to the IAS/IFRS - unaudited

Presentation from press conference you find here.

T-Mobile Czech Republic, a member of the international telecommunications group Deutsche Telekom, has almost 6.2 million customers, the number-one operator in the Czech market. T-Mobile is an integrated operator: in addition to telecommunications services, it offers comprehensive ICT solutions not only for companies, but also for other organizations and individuals. It provides outstanding services in the high-speed network, which was proved repeatedly by benchmark testing performed by umlaut (former P3) with Best-in-Test seal.

T-Mobile Czech Republic places emphasis on taking a responsible approach to the environment and society. It adheres to fair business practices, helps beneficial applications and services to see the light of day, supports non-profit organizations, small businesses and individuals, and lends a helping hand whenever crisis situations arise. The company’s employees serve as volunteers in many places across the entire Czech Republic.

More information about the company is available at www.t-mobile.cz, www.t-press.cz (the portal for journalists) and www.t-mobile.cz/pomahame (information on the company’s CSR activities).

Contact details of the press unit: press@t-press.cz.