First half of 2006: Significantly more contract customers, increase in revenues and ARPU

• Contract customers represent more than 31% out of a total of 4.734 million customers
• Increase in revenues of 6%

Prague, 10 August 2006 - T-Mobile's long-term focus on the contract-customer segment and its effort to offer favorable services are strongly reflected in the company's results for the first half of 2006. The total number of customers reached more than 4.73 million; of this number, contract customers represent more than 31%. Total revenues grew year on year by 6% to CZK 14.2 billion and net profit amounted to almost CZK 2.7 billion. EBITDA reached approximately CZK 6.3 billion and the EBITDA margin increased to an excellent 44.7%. The share of non-voice services in the revenues per customer is 20%.

"The achieved results exceeded our expectations. We very highly value particularly the increase in the contract-customer base and the related increase of ARPU," says Roland Mahler, Managing Director of T-Mobile Czech Republic, adding: "We realize that, taking into account the current situation in the Czech market, investment in customers is the only option. This is reflected particularly in the portfolio of favorable services and tariff plans. T-Mobile was the first operator to significantly reduce roaming charges, which now, as proved by the traffic statistics, better meets customers' needs. Our results for the first half of this year show that our efforts are positively reflected in users' satisfaction and in the development of financial indicators."

Customers: the number of new contract customers grew significantly in the second quarter
The total number of customers grew year on year by 6.1%. The total number of contract customers increased to 1.48 million. As of the end of June 2006, the contract-customer base accounted for more than 31% of the total customer base. The 157% year-on-year increase in the number of new contract customers is also no less convincing.
As of 15 January, customers may port their numbers between mobile networks. This option did not significantly influence the development in the customer base - in the first half of 2006, the monthly churn grew year on year by a mere 0.4 percentage point to a total of 1.4%.

Financial results: total revenues higher by 6%, increase in ARPU
In the first half of 2006, T-Mobile Czech Republic a.s. recorded total revenues in the amount of CZK 14.2 billion, which represents a year-on-year increase of 6%. The growth of the customer base and greater usage of the services provided substantially contributed to this very good result. EBITDA (earnings before interest, taxes, depreciation and amortization) reached approx. CZK 6.3 billion, which represents a slight decrease in comparison with the same period of last year. The EBITDA margin reached 44.7% and ARPU (average revenue per user) slightly increased by 0.8% year on year to CZK 486.
The development of net profit, which amounted to CZK 2.7 billion, was particularly influenced by higher depreciation in the relevant period.

Cheap roaming is a hit
The values achieved clearly show that T-Mobile can appeal to customers with offers that encourage them to make more extensive use of mobile communication services. In addition to one of the most successful services provided by T-Mobile, Pevná+ (Fixed+), new services were launched that significantly reduce call charges, such as special packages of free units intended not only for new customers (see here). Another area of focus is roaming - the special roaming add-on called Cestovatel (Traveler) introduced in January of this year offers the best roaming prices in the Czech market (see here). For more information on other services launched during the first half of 2006, see the links below.

"In the second half of this year, we would like to focus on the further development of data services, particularly on the enhancement of high-speed internet access for the majority of population and on the launch of favorable data tariffs," says Roland Mahler, commenting on T-Mobile's plans for H2 2006.

	First half of 2006	First half of 2005	Change in %
Number of customers ( ´000)	4,734	4,463	6.1
Contract customers	1,477	1,178	25.4
Twist customers	3,257	3,285	(0.9)
New customers* ( ´000)	100	103	(2.9)
Contract customers	190	74	156.8
Twist customers	-89	30	na
Average churn (%)	1.4	1.0	0.4p
Total revenues (CZK million)	14,228	13,422	6.0
Revenues from services	13,595	12,731	6.8
Net profit (CZK million)	2,677	3,029	(11.6)
EBITDA (CZK million)	6 349	6,503	(2.4)
EBITDA margin ? total revenues (%)	44.7	48.5	(3.8)
EBITDA margin ? revenues from services (%)	46.8	51.1	(4.3)
ARPU incl. foreign customers (CZK)	486	482	0.8
Share of non-voice services in ARPU (%)	20	21	(1p)

Financial results according to the IFRS

Information on the services introduced in the first half of 2006:
Cestovatel (Traveller)
Simplification of roaming charges
Cestovatel
Cheaper roaming charges also for customers using Twist
Worldwide operators will reduce roaming charges
web´n´walk

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.