3Q 2004: Significant increase in contract customers and net profit

• Contract customers continue to prefer T-Mobile: Their numbers increased 29% year-on-year
• Total revenues exceeded CZK 19.3 billion; net profit grew significantly to almost CZK 3.5 billion
• Rapid development of data services - volume of transmitted GPRS data increased by 3,748%

Prague, 11 November 2004 - The third quarter of 2004 again confirmed T-Mobile's leading position in the Czech market in the area of contract customers. The number of contract customers who chose T-Mobile's services grew by 29% compared to the same period of 2003. New customer additions during the first nine-month remained more or less the same year-on-year (183 thousand compared to 182 thousand in 2003). T-Mobile thus serves 4.13 million customers in the Czech Republic, which represents a year-on-year increase of 439,000 or almost 12% (3.691 million in the same period of 2003). Over a million of these customers use some of the tariff programmes.

"We are proud that the largest number of customers chose our company during the past year. This confirms our emphasis on the combination of favourable prices and the highest standard of services. Furthermore, this has been confirmed by a number of awards for both the quality of our network and of the services themselves during the past few months. Of greatest importance to us was the Czech National Quality Award; the T-Mobile Group was named Best Global Mobile Operator," says Roland Mahler, Managing Director of T-Mobile Czech Republic a.s.

In terms of operating results, T-Mobile confirmed the growth trend, most significantly in data services - the amount of data transferred increased by more than 38 times. The focus on voice services emphasised in the long term was reflected in an increase in usage  - this figure grew by 15.5 percent compared to the same period last year.

"The third quarter again showed a dramatic increase in the interest of Czech users in mobile data. We are convinced that EDGE, which we launched this week, will satisfy even the needs of discerning mobile data users," Roland Mahler adds.

	3 Q 2004	3 Q 2003	Change in %
Customer numbers	4 130 000	3 691 000	+11.9
Contracts customers	1 050 000	814 000	+29.0
Twist customers	3 080 000	2 877 000	+7.1
New additions	183 000	182 000	+0.5
Contract customers	161 000	143 000	+12.6
Twist customers	22 000	39 000	(43.7)
Total revenues (CZK mil.)	19 389	17 906	+8.3
EBITDA (CZK mil.)	8 913	8 328	+7.0
Net profit	3 483	2 938	+18.6
ARPU	470	489	(4.0)

Note: Financial results according to German GAAP, not audited.

Total revenues grew to CZK 19.389 billion, which represents an increase of 8.3 percent compared to the same period last year. The third quarter of 2004 also saw an increase in EBITDA (by 7 percent) and net profit (by 18.6 percent) in comparison with the third quarter of 2003. Despite the growth in both voice and non-voice traffic, average revenues per user (ARPU) dropped by 4 percent. Particularly the growth of the customer base and the favourable price-to-quality ratio is reflected in this fact.

"Our greatest success is the achievement of continuous growth in a saturated market. One of the engines of this growth is the fact that more and more companies choose T-Mobile; they appreciate the stability and know-how of a leading international operator," says Otakar Kral, Executive Vice President Finance of T-Mobile Czech Republic a.s.

The list of new corporate clients includes distinguished names such as the State Environmental Fund of the Czech Republic, the Czech Bishops' Conference, the Czech Environmental Inspection Agency, Trinecke zelezarny, SETUZA, EUROMEDIA GROUP, EXIM Tours and Renault Trucks CR.

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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.