T-Mobile International grows customer base in the first quarter of 2005 to about 79 million

• T-Mobile International grows customer base in the first quarter of 2005 to about 79 million
• T-Mobile USA continues to be the main growth driver with exceptional good financial results
• T-Mobile Deutschland on target  with valuable growth
• Results are published under IFRS for the first time
  

T-Mobile International added almost 1.5 million customers in the first quarter 2005 and served in the consolidated countries on March 31 78.9 million customers. 70 % of all new customers decided on a post-paid contract. By that nearly 50 % of the whole T-Mobile customer base is now on post-paid contracts.

A special success across Europe are the Relax tariff schemes. 3.1 million customers which is about 14 % of all contract customers use these bundle offers.

Total revenues compared to the first quarter 2004 were up 7.6 % to 6,7 bn euros and adjusted EBITDA 15.6 % to 2,1 bn euros. In the UK the regulatory decision from last year had a negative impact. All other T-Mobile countries reported EBITDA growth compared to the first quarter 2004.

T-Mobile USA alone added nearly 1 million customers last quarter and nearly 4 million in the last 12 months which brings its customer base to 18.3 million. At the same time compared to the first quarter 2004 it raised its total revenues 27 % and EBITDA even 63 %. Eliminating the currency factor the numbers were even higher, on a U.S. Dollar base they are 33 % and 71 %. Accounting changes for other taxes and leasing expenses affect the reported EBITDA negative compared to the up to now used German GAAP.

Q1 2005 results at T-Mobile Germany reflect the consequent profitable growth strategy and was able to increase customer numbers by 89,000 to 27.6 million, while improving the customer mix at the same time. Compared to Q1 2004, the post-pay customer contingent increased by 6.4 percent. Meantime more than 49 percent of T-Mobile Germany customers use tariffs in post-pay contracts. This means an increase of about 2 percent points compared to 2004. With an EBITDA margin of about 40 % in the first quarter 2005 T-Mobile Germany improved about 2 %p over the Q1 number in 2004. This already shows first results of a consequent cost management. The slight decline in total revenue compared to Q1 2004 is due mainly to a planned reduction of handset sales. ARPU revenues were slightly up.

For the first time the Q1 results of T-Mobile International include the numbers of the mobile operators majority owned through Deutsche Telekom. As of 2005 Deutsche Telekom uses IFRS instead of German GAAP.

Customers (thousands)	Q1/04	Q1/05	Delta %
T-Mobile International	70,882	78,866	11.3
T-Mobile Deutschland	26,681	27,560	3.3
T-Mobile UK1)	14,343	16,117	12.4
T-Mobile Austria	2,012	2,041	1.4
T-Mobile Czech Republic	3,991	4,930	10.0
T-Mobile Netherlands	2,109	2,222	5.4
T-Mobile USA	14,303	18,271	27.7
T-Mobile Hungary	3,838	4,052	5.6
T-Mobile Croatia	1,354	1,550	14.5
T-Mobile Slovakia	1,685	1,885	11.9
Mobimak Macedonia	565	777	37.5

Revenue (millions of euro)	Q1/04	Q1/05	Delta %
T-Mobile International	6,272	6,746	7.6
T-Mobile Deutschland	2,120	2,074	-2.2
T-Mobile UK	1,133	988	-12.8
T-Mobile Austria	235	222	-5.5
T-Mobile Czech Republic	186	217	16.7
T-Mobile Netherlands	250	256	2.4
T-Mobile USA	2,053	2,598	26.5
T-Mobile Hungary	235	256	8.9
T-Mobile Croatia	89	101	13.5
T-Mobile Slovakia	755	86	14.7
Mobimak Macedonia	30	31	3.3

Adjusted EBITDA (millions of euro)2)	Q1/04	Q1/05	Delta %
T-Mobile International	1,826	2,111	15,6
T-Mobile Deutschland	803	825	2.7
T-Mobile UK	384	277	-27.9
T-Mobile Austria	55	62	12.7
T-Mobile Czech Republic	86	108	25.6
T-Mobile Netherlands	3	26	766.7
T-Mobile USA	369	602	63.1
T-Mobile Hungary	97	99	2.1
T-Mobile Croatia	37	51	37.8
T-Mobile Slovakia	32	40	25.0
Mobimak Macedonia	16	16	0.0

EBITDA margin adjusted (euro million) in %	Q1/04	Q1/05	Delta %
T-Mobile International	29.1	31.3	2.2
T-Mobile Deutschland	37.9	39.8	1.9
T-Mobile UK	33.9	28.0	-5.9
T-Mobile Austria	23.4	27.8	4.4
T-Mobile Czech Republic	46.2	50.0	3.86
T-Mobile Netherlands	1.2	10.3	9.1
T-Mobile USA	18.0	23.2	5.2
T-Mobile Hungary	41.3	38.5	-2.8
T-Mobile Croatia	41.6	50.3	8.7
T-Mobile Slovakia	43.0	47.0	4.0
Mobimak Macedonia	53.3	52.3	-1.0

ARPU (euro)3)	Q1/04	Q1/05	Delta %
T-Mobile Deutschland	23	23	-2.2
T-Mobile UK	31	26	-16.9
T-Mobile Austria	35	34	-2.0
T-Mobile Czech Republic	15	16	7.6
T-Mobile Netherlands	35	35	-2.0
T-Mobile USA	41	39	-5.1
T-Mobile Hungary	19	19	1.1
T-Mobile Croatia	21	20	-1.9
T-Mobile Slovakia	14	14	2.2
Mobimak, Macedonia	17	13	-26.3

SACs per gross add (euro)	Q1/04	Q1/05	Delta %
T-Mobile Deutschland	94	107	14.1
T-Mobile UK	143	157	9.8
T-Mobile Austria	155	133	-14.0
T-Mobile Czech Republic	27	26	-3.3
T-Mobile Netherlands	237	194	-18.1
T-Mobile USA	177	149	-15.8
T-Mobile Hungary	40	35	-13.3
T-Mobile Croatia	57	61	6.8
T-Mobile Slovakia	28	37	32.9
Mobimak, Macedonia	19	20	4.63

Blended monthly churn (in %)	Q1/04	Q1/05	Delta % p.
T-Mobile Deutschland	1.3	1.4	0.1
T-Mobile UK	1.2	2.6	1.4
T-Mobile Austria	2.0	1.9	-0.1
T-Mobile Czech Republic	1.1	16	7.6
T-Mobile Netherlands	2.3	3.7	1.4
T-Mobile USA	3.0	2.8	-0.2
T-Mobile Hungary	0.8	1.3	0.5
T-Mobile Croatia	1.4	1.1	-0.3
T-Mobile Slovakia	1.4	2.3	0.9
Mobimak, Macedonia	0.9	1.7	0.8

Notes:
1) Including Virgin Mobile
2) EBITDA: Results from ordinary business activities before net financial income/expense including income related to subsidiaries, associated and related companies, amortization and depreciation, and before other taxes.
3) ARPU contains monthly service fee, as well as voice, non-voice and roaming revenues.
4) EBITDA adjusted for special factors.
5) These amounts relate to the companies' respective unconsolidated financial statements (single-entity financial statements adjusted for uniform group accounting policies and reporting currency) without taking into consideration consolidation effects.
6) based on thousands

Disclaimer

This release contains forward-looking statements that reflect the
current views of the Deutsche Telekom management with respect to future events. Forward-looking statements are based on current plans, estimates and projections, and therefore too much reliance should not be placed on them. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom's control, including those described in the sections "Forward-Looking Statements" and "Risk Factors" of the Form 20-F submitted to the U.S. Securities and Exchange Commission. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, Deutsche Telekom's actual results may be materially different from those expressed or implied by such statements. Deutsche Telekom does not assume any obligation
to update forward-looking statements to take new information or future events into account. In addition to the figures shown in accordance with IFRS, Deutsche Telekom also shows so-called pro forma figures, e.g., EBITDA, adjusted EBITDA, net debt, and free cash flow. These pro forma financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFS. For a definition of these pro forma figures, please refer to the explanations under "Reconciliation to pro forma figures" on Deutsche Telekom's Investor Relations website at www.deutschetelekom.com.

This release contains financial information that has been prepared in accordance with International Financial Reporting Standards, or "IFRS", and on the basis of the new strategic business areas. The IFRS financial information contained in this report was prepared on the basis of the assumption that, with the exceptions of IAS 39 "Financial Instruments: Recognition and Measurement" and IFRIC 3 "Emission Rights", all existing standards and interpretations that have been issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) will be fully endorsed by the EU. The accounting policy for financial instruments takes into account the proposed EU revisions to IAS 39 and complies with the amended IAS 39. IFRIC 3 is not relevant for Deutsche Telekom. Subject to EU endorsement of outstanding standards and no further changes from the IASB, the information presented here is expected to form the basis for reporting Deutsche Telekom's financial results for 2005, and for subsequent reporting periods. However, Deutsche Telekom cannot assure you that there will not be material changes in IFRS between the date of this Interim Report and the first date on which Deutsche Telekom is required to publish financial statements for 2005, 2004 or 2003 under 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.