First quarter 2007: Strong position confirmed, both in terms of financial and customer results

• Expected financial results reached - significant growth in both revenues and EBITDA
• The customer base counts more than 5.1 million customers
• The number of contract customers amounts to 1.9 million, making up more than 37% of the customer base

Prague, 10 May 2007 - T-Mobile's long-term focus on the contract-customer segment and effort to meet customer needs became fully reflected in the Company's results for the first quarter of 2007. The reported results show outstanding achievements in the highly competitive market environment. T-Mobile reports the highest number of active SIM cards. Out of the total of 5.109 million customers, 1.9 million (37.4%) are contract customers. Customer additions totaled 60,000 in the first quarter 2007. The financial results were also positive: The key financial indicators such as revenues (higher by 8.1% compared to Q1 2006) and EBITDA (higher by 16.1%) improved. The ARPU indicator remains on more or less the same level as in the respective period of 2006, amounting to CZK 469.

"We highly value our success, especially with regard to the tough competition in the mobile telecoms market where penetration has exceeded 120 percent," says Roland Mahler, Managing Director of T-Mobile, adding: "Our effort to focus on customer needs and wishes results in their long-term confidence and loyalty. These qualities are vital prerequisites for achieving convincing results and strengthening our leading position."

Financial results: total revenues up by 8.1%, EBITDA by 16.1%
The financial results achieved by T-Mobile in the first quarter of 2007 show strong performance in the extremely competitive market. Total revenues amounted to CZK 7.4 billion, which represents a year-on-year increase of 8.1%. EBITDA (earnings before taxes, interest, depreciation and amortization) increased by 16.1% year-on-year, EBITDA margin was 48.3%, net profit rose to almost CZK 1.8 billion (increase by 48.3%), and ARPU (average revenue per user) reached the value of CZK 469.

Customers: Nearly 48% y/y increase in the number of new contract customers
The total number of customers grew by 9.9% year-on-year, the number of contract customers even by almost 41% to 1.9 million. This figure represents more than 37.5% of the total customer base. The business customers that T-Mobile gained in Q1 2007 included, for example, Zetor Tractors, Dalkia Ostrava, State Agricultural Intervention Fund (Státní zemědělský intervenční fond).

"In the coming months, we will continue to adhere to our strategy of focusing on the introduction of a larger number of segment-targeted offers," says Roland Mahler. "As an example, let me mention Girls Talk - the tariff add-on offering free calls after the third minute - and an extension of our roaming 'flagship' Cestovatel to all networks in all the eleven T-Mobile countries, including the most popular holiday destinations. This offer will simply make our customers' holidays more pleasant and trouble-free," adds Mahler.

(For more information on the offers mentioned above, please see www.t-press.cz and www.medianavigator.cz)

	Q1 2007	Q2 2006	Change in %
Number of customers ('000)	5,109	4,648	9.9
Contract customers	1,915	1,359	40.9
Twist customers	3,194	3,289	(2.9)
New customers ('000)	60	14	328.6
Contract customers	106	72	47.7
Twist customers	-46	-57	19.3
Average monthly churn (%)	1.3	1.6	(0.3 p.p.)
Total revenues (CZK mil.)	7,432	6,876	8.1
ARPU revenues incl. visitors	7,145	6,529	9.4
Net profit (CZK mil.)	1,788	1,205	48.3
EBITDA (CZK mil.)	3,579	3,082	16.1
EBITDA margin - total revenues (%)	48.3	45.0	3.3 p.p.
EBITDA margin - revenues from services (%)	50.2	47.4	2.8 p.p.
ARPU including foreign visitors (CZK)	469	470	(0.2)
Share in non-voice services in ARPU (%)	20	21	(1 p.p.)

Non-audited financial results 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.