First half of 2005 confirmed: T-Mobile is No 1

• Most customers in the Czech Republic use T-Mobile mobile services
• Excellent financial results - growth in profit and EBITDA
• The share of non-voice services in revenues keeps increasing

Prague, 11 August 2005 - The first six months of 2005 have been successful for T-Mobile. With the total number of active customers at 4.46 million, T-Mobile outperformed its competitors and became the new Number One in the Czech market. Its emphasis on increasing efficiency has been reflected in the significant improvement of key financial indicators, such as net profit growth (by 39.7%) and EBITDA (by 14.2%). With its share in total revenues per one customer at almost 22%, the use of non-voice services is becoming more and more significant.

In comparison with the first half of last year, the number of customers grew by almost 10% to 4.463 million, which is the most of all Czech mobile operators. The contract customer base increased significantly, growing by more than 17% year-on-year. T-Mobile kept its position as the leading operator in the number of prepaid SIM cards - at the end of June 2005, more than 3.285 million customers were using Twist.

In the fall of 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. "Our target has often been questioned, as we operate in a fully saturated and highly competitive market. The more valuable, therefore, is the achievement of the first 'part of the goal' within the stated deadline," says Roland Mahler, Managing Director of T-Mobile Czech Republic, adding: "We believe that the fact that we kept the promise will also strengthen the trust of our customers, thanks to whom we have achieved this success."

In the first half of 2005, T-Mobile reported excellent financial results: total revenues exceeded CZK 13.4 billion, net profit exceeded the mark of CZK 3 billion (an increase of 39.7 %), and the important EBITDA indicator (earnings before taxes, interest, depreciation and amortization) grew by 14.2 % in comparison with the same period last year. The EBITDA margin grew by more than 3 percentage points and its total value thus increased to almost 49 %. 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 the first half of 2005, T-Mobile put great effort into the further development of data services. Up to now, EDGE coverage has been extended to the 36 largest cities and more than 200 neighboring towns in the Czech Republic and will keep expanding. By the end of the year, T-Mobile plans to launch a powerful high-speed UMTS network on the TDD standard. With the launch of this technology T-Mobile will offer 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 triplede compared with the year 2004.

"In the next period, we would like to prove to our customers that our mobile network can offer a full-fledged substitute for fixed networks also in the case of data services," Roland Mahler comments on the further course of the company's activities.

The interest of business customers in T-Mobile services continued to grow in the first half of 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), ABB, Ministry of Regional Development, Air Navigation Services (Řízení letového provozu), Baťa, Linde Technoplyn, Zlín Regional Authorities or The City of Břeclav.

"We know that we have achieved our goal especially thanks to our customers. We would, therefore, like to share our joy with them and offer them a small gift - during the weekend of 20 and 21 August, all SMS sent to any Czech mobile network will be free," says Roland Mahler.

	First half of 2005	First half of 2004	Change %
Penetration (%)	105.2	95.8	9.4 p.p.
Number of customers('000)	4 463	4 075	9.5
Contract customers	1 178	1 003	17.5
Twist customers	3 285	3 072	6.9
New customers* ('000)	103	128	(19.3)
Contract customers	74	114	(35.2)
Twist customers	30	14	108.7
Total revenues (CZK mil.)	13 422	12 611	6.4
ARPU revenues	12 731	11 905	6.9
Net profit (CZK mil.)	3 029	2 168	39.7
EBITDA (CZK mil.)	6 503	5 696	14.2
EBITDA margin - total revenues (%)	48.5	45.2	3.3
EBITDA margin - revenues from services (%)	51.1	47.8	3.3
ARPU incl. visitors (CZK)	482	496	(2.8)
Share of non-voice services in ARPU (%)	21.9	20.8	1.1 p.b.

Note: *rounded to thousands
Financial results according to the IFRS 

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.