Results for First Half of 2004: A Step Closer to Becoming Number One

• Double-digit growth in new customers and post-paid customers
• T-Mobile is the leading Czech mobile operator with more than one million post-paid customers
• Total revenues reached CZK 12,653 million, net profit stable at CZK 2,061 million
• Total number of active SIM cards on the market exceeds 10 million

Prague, 12th August 2004 - T-Mobile Czech Republic saw the number of post-paid customers grow by more than 30 percent during the first half of 2004 as compared to the same period last year. Despite the near saturation of the market with over 10 million active SIM cards in total, growth in new customers accelerated as compared to the same period in 2003, total number of new customers reaching 128,000 (97,000 in 2003). The total number of customers now stands at 4,075 million (compared to 3,607 million for the same period in 2003), of which more than one million are post-paid customers.

"We have achieved further progress on the way towards our declared goal - to become the number one operator on the Czech market. Our dynamic growth, achieved in a market with nearly 100 percent penetration, is clearly a sign customers value our efforts to offer the best value for money," said Roland Mahler, Managing Director of T-Mobile Czech Republic.

Earlier this year T-Mobile announced its strategy to focus on voice products and the figures for the first half-year clearly confirm the decision was a right one. The campaign ?It's OK to Call' saw the number of total minutes carried grow by 19.2 percent as compared to the same period last year. The number of SMS sent was also up by 8.32 percent. Growth in data transferred was the most dramatic - it grew more than 36 fold.

"It is a pleasure to see that we are addressing the real needs of our customers, primarily focusing on voice services and the results for the first six months of this year clearly show this," added Roland Mahler.

	1H 2004	1H 2003	Δ%
Number of customers	4 075 000	3 607 000	+13.0
post-paid customers	1 003 000	766 000	+30.9
pre-paid customers	3 072 000	2 841 000	+8.1
New customers	128 000	97 000	+31.4
post-paid customers	114 000	94 000	+20.5
pre-paid customers	14 000	3 000	+419.2
Total revenues (mil. CZK)	12 653	11 652	+8.6
EBITDA (mil. CZK)	5 601	5 486	+2.1
Net profit (mil. CZK)	2 061	1 949	+5.7
ARPU (CZK)	465	479	-3,0
GPRS data transferred (kB) - excl. MMS	17 363	467	+3 919.2
Total SMS sent (mil.)	888	820	+8.3

Financial results according to German GAAP standards.

Total revenues amounted to CZK 12.653 billion during the first half year of 2004, growth of 8.6 percent as compared to the same period in 2003. EBITDA grew by 2.1 percent and the net profit was also up by 5.7 percent as compared to the same period last year. Despite higher number of minutes carried and SMS sent, average revenue per user fell by 3.0 percent. This is clearly a reflection on the higher growth in the customer base.

"Achieving consistent growth in a saturated market is our biggest success. One of the factors fuelling growth is the fact that more and more businesses are signing up to T-Mobile and the stability and know-how of a leading international operator that comes with it," said Otakar Král, Executive Vice President Finance, T-Mobile Czech Republic.

The list of new business customers includes such prominent names as the Czech Television, Senate, DHL, Opavia-LU, Eurest, CK Fischer, Deloitte & Touche, e-Banka, Makro Cash&Carry and ČSOB Pojišťovna.

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.