First quarter 2005 marked by efficiency

• Significant growth of financial indicators, significant growth of EBITDA margin to 50%
• T-Mobile number 1 among contract customers
• Non-voice services make up an increasing share of revenues 

Prague, 12 May 2005 - In the first quarter of 2005, T-Mobile recorded a significant growth of the key financial indicators, particularly net profit (35.1%) and EBITDA (14.8%). The EBITDA margin reached an above-average 50%. Moreover, the operator was able to keep its position of number one in terms of the total number of contract customers. T-Mobile customers were using non-voice services to an even greater extent - non-voice services represented a 22.2% share of revenues per customer.

T-Mobile's customer base increased by 10%, which fully meets the expectations. "We feel flattered that T-Mobile continues keeping the leading position in terms of contract customer numbers," says Roland Mahler, Managing Director of T-Mobile Czech Republic a.s., and adds: "The launch of the Fixed+ tariff add-on and extension of EDGE coverage, for example, met with an excellent response from contract customers." It is also the group of contract customers which contributed most to the increased share of data services in ARPU.

During the first quarter, T-Mobile recorded outstanding financial results: total revenues reached CZK 6.5 billion, net profit almost CZK 1.5 billion (35.1% growth) and EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 14.8% compared with the same period last year. The EBITDA margin increased year-on-year by almost 4% p.p., reaching 50%. These figures prove a significant increase in the company's efficiency, as well as the fact that the Save for Growth international programme is the right course.

During the past period, T-Mobile was further developing data services - in addition to the extension of EDGE coverage, new interesting applications that are intended not only for business customers were added to the portfolio of non-voice services (telemetry, location-finding and navigation services, protection of property, etc.). This was reflected in data traffic: the volume of data transmitted increased year-on-year by 300% and the share of non-voice services in ARPU grew by 2.0 p.p. to 22.2%. This is an above-average figure not only within the T-Mobile Group.

"Our greatest success is achieving sustainable growth in a highly saturated market. The ability to attract contract customers as well as the fact that T-Mobile is the preferred choice among more and more businesses contribute to this success. These customer groups appreciate the stability, wide portfolio of services and the value-price ratio offered by our company," says Roland Mahler.

The list of new business customers includes renowned names such as Ministry for Regional Development, Masaryk University in Brno, ABB, GE Money Bank, a.s., Johnson & Johnson, City of Česká Lípa, Administration of the National Park and Protected Landscape Area of Šumava, WOOD & Company Financial Services, BASF and STEM/MARK.

	Q1 2005	Q1 2004	Change v %
Penetration (%)	106.4	96.0	10.4
Customer nubers ('000)	4 390	3 991	10.0
Contract customers	1 128	947	19.1
Twist customers	3 262	3 044	7.2
New customers ('000)	30	43	(30.2)
Contract customers	23	58	(60)
Twist customers	7	-15	-
Total revenues (CZK million)	6 511	6 101	6.7
ARPU revenues (CZK million)	6 172	5 688	8.5
Net profit (CZK million)	1 466	1 085	35.1
EBITDA (CZK million)	3 254	2 835	14.8
EBITDA margin - total revenues (%)	50.0	46.5	3.5
EBITDA margin - ARPU revenues (%)	52.7	49.8	2.9
ARPU incl. vistors (CZK)	470	477	(1.5)
Share of non.voice services in ARPU (%)	22.2	20.2	2.0p

The financial results are stated in accordance with 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.