First half of 2007: More than 2 million contract customers and further growth of financial indicators

• Contract customers account for more than 39% of T-Mobile's customer base of 5.14 million
• Year-on-year increase in revenues of 8.3%, EBITDA higher by 13.8%

Prague, 9 August 2007 - T-Mobile Czech Republic a.s. has been pursuing a long-term strategy focusing on the contract-customer segment, which is based on a wide portfolio of segment-targeted telecommunications services. The fact that this strategy is proving successful is reflected in the Company's financial results for the first half of 2007. The total number of customers reached 5.14 million, of which contract customers represented more than 39%. The total revenues grew year-on-year by 8.3% to CZK 15.4 billion. EBITDA reached approximately CZK 7.2 billion and the EBITDA margin increased to 47%. Average revenue per user (ARPU) amounted to the level of CZK 484.

"We are very satisfied with our first-half results and we particularly highly value the increasing weight of our contract customers whose number exceeded the two-million mark. The development of financial figures is also very favorable and proves that our Company can effectively perceive market needs," says Roland Mahler, Managing Director of T-Mobile Czech Republic a.s. "The time when operators could rely on a massive growth in customer numbers is over. What counts now are investment in customers and the level of care provided to them."

During the first six months of the year, the Company's effort to offer favorable services tailored to customers' needs was demonstrated, for example, by the launch of a new generation of credit plans, the Girls Talk tariff add-on offering free calls after the third minute and the launch of new Twist plans. T‑Mobile also introduced significant discounts on its roaming services, and is the first operator to launch an EU-compliant roaming add-on.

Customer numbers: More than two million contract customers
The total number of customers increased by 8.6% year-on-year. The contract-customer segment continued to grow - the number of contract customers exceeded two million, which accounts for more than 39% of the total customer base of 5.14 million. During the first six months of 2007, T-Mobile gained 91 thousand new customers.

The monthly churn (i.e., the number of customers who decided to stop using the operator's services) remains more or less stable: based on a year-on-year comparison, this indicator dropped by 0.1 percentage point to 1.3%.

Financial results: increase in revenues and EBITDA
For the first half of 2007, T-Mobile Czech Republic a.s. reported total revenues in the amount of CZK 15.4 billion, which represents a year-on-year increase of 8.3%. This excellent result was significantly contributed to by the growth of the customer base, increased number of contract customers as well as greater usage of the services provided. EBITDA (earnings before interest, taxes, depreciation and amortization) reached CZK 7.2 billion, which represents a significant increase of 13.8% compared with the same period of last year. The EBITDA margin was 47% and ARPU amounted to CZK 484.

The achieved results clearly show that T-Mobile can appeal to customers with favorable services, thanks to which they are no longer afraid to use mobile communications services to a larger extent: one of the most successful services is the Girls Talk add-on, which offers free calls after the third minute. T-Mobile also continued to place particular emphasis on its roaming services: during the first half of the year, customers who activated the Cestovatel add-on could receive incoming calls when abroad free of charge. T-Mobile also actively promoted the introduction of an EU-compliant tariff prior to the deadline stipulated by the European Commission.

"One of the most significant trends in the area of mobile communications is strengthening their social role. Mobile phones increasingly help people to stay in touch with their relativem and closest friends in today's hectic world. In future, we would therefore like to concentrate, among other things, on this area and offer corresponding services," says Roland Mahler, commenting on the Company's plans.

	1H 2007	1H 2006	Change (%)
Number of customers ('000)	5,140	4,734	8.6
Contract customers	2,014	1,477	36.4
Twist customers	3,125	3,257	(4.1)
New customers ('000)	91	100	(9.0)
Contract customers	205	190	7.9
Twist customers	-114	-89	(28.1)
Average monthly churn (%)	1,3	1.4	(0.1p)
Total revenues (CZK mil.)	15,407	14,228	8.3
ARPU revenues incl. visitors	14,812	13,595	9.0
EBITDA (CZK mil)	7,223	6,349	13.8
EBITDA margin - total revenues (%)	47.0	44.7	2.3
EBITDA margin - ARPU revenues	48.9	46.8	2.1
ARPU incl. vistors	484	486	(0.4)
Share of non-voice services in ARPU (%)	19	20	(1p)

Note: all financial figures according IFRS

Information on the services offered during the first half of 2007:

Cestovatel: incoming calls abroad free of charge

T-Mobile to reduce the price of MMS by up to 40%

New credit plans from T-Mobile

t-music PLAY! - put music in your mobile phone

New Twist plans

T-Mobile Girls Talk: Free calls after the third minute

t-music Stage: new portal for musicians

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.