T-Mobile International increases customer base to over 90 million

• T-Mobile International increases customer base to over 90 million as of mid-2006
• Customer figures up 11.5 percent and service revenues up 11.6 percent year-on-year in first half of 2006
• T-Mobile Deutschland still the undisputed market leader with 30.4 million customers
• Sustained growth at T-Mobile USA: Customer figures up 21.3 percent, service revenues up 25.2 percent
• T-Mobile USA increases sustainability of customer relationships by changing over from one-year to two-year contracts
• T-Mobile UK attracts over 360,000 new contract subscribers
• Tele.ring fully consolidated since May 2006

Bonn, August 10, 2006 - T-Mobile International continued its growth course in the first half of 2006, expanding its customer base by 11.5 percent year-on-year to 90.2 million. The company attracted 2.5 million new subscribers in the second quarter of 2006, one million of which were added through the consolidation of tele.ring. Service revenues increased in the first six months of the year by 11.6 percent year-on-year to EUR 13.4 billion, while total revenue rose by 10.7 percent to EUR 15.4 billion. T-Mobile's U.S. subsidiary continued its outstanding track record with impressive year-on-year growth of 21.3 percent in its customer base and 25.2 percent in service revenues. EBITDA improved slightly by 2 percent to EUR 4.6 billion compared with mid-2005 and by 3.6 percent as against the first quarter of 2006. As announced, the development of EBITDA was dominated by high market investments in the different countries that squeezed margins in the Western European countries in particular.

Details on individual national companies:

T-Mobile Deutschland is still the undisputed market leader with 30.4 million customers. Thanks to its 175,000 new contract subscribers in the second quarter, the company's growth far outstripped that of other German network operators in this segment. Compared with the first quarter of 2006, T-Mobile Deutschland's total revenue improved by 2.8 percent to approximately EUR 2.1 billion, while its service revenues rose by as much as 3.5 percent to approximately EUR 1.9 billion. Sustained price pressure and lower termination charges in recent months reduced total revenue and service revenues by 3.3 and 3.1 percent respectively as compared with mid-2005. In the first six months of 2006, T-Mobile Deutschland reduced its customer acquisition costs by 9 percent year-on-year to EUR 91. ARPU increased by EUR 1 to EUR 21 compared with the first quarter of 2006. The T-Mobile@home calling plan increased in popularity: Just months after marketing started, around 700,000 customers had subscribed to this fixed-network alternative. The company will reach its own forecast of attracting one million customers with the new offer by the beginning of 2007 earlier than planned.

T-Mobile USA's success story is continuing. By mid-2006, 23.3 million customers were using T-Mobile USA's network to make calls. This represents an increase of 21.3 percent since June 2005. T-Mobile's U.S. subsidiary acquired 613,000 new customers compared with the first quarter of 2006. This increase would have been much higher were it not for the changeover from one-year to two-year contracts for new customers. The change in market practice led to a decline in the acquisition of new customers in April. Yet, by adopting this approach, as did all major U.S. players in past quarters, T-Mobile USA is increasing the sustainability of future customer relationships. Meanwhile, its business with new customers has been flourishing once more.

Compared with the first six months of 2005, T-Mobile USA has also confirmed its growth course with a 22.7 percent increase in total revenue to EUR 6.7 billion (translated). Service revenues climbed by a substantial 25.2 percent to EUR 5.5 billion. At EUR 41 (translated), ARPU rose slightly by comparison with the first half of the previous year.

T-Mobile UK secured 675,000 new customers as compared with mid-2005, enlarging its customer base to 16.7 million. Increased investment in the UK market is reflected in the total number of new customers since the first quarter - 369,000, a substantial 363,000 of whom are contract subscribers. T-Mobile UK's growth is also mirrored in its financial indicators. For example, total revenue in the second quarter of 2006 rose by 10.9 percent to EUR 1.1 billion compared with the same quarter in 2005 and by 7.6 percent to EUR 2.2 billion compared with the first six months of 2005. Service revenues were up 9.3 percent and 8.4 percent respectively and increased by 11.7 percent as against the first quarter of the year. ARPU rose EUR 2 from the first quarter of 2006 to EUR 28, thus stabilizing at EUR 27 compared with the first half of 2005. As a consequence, the systematic, sustained market investments in the United Kingdom are also reflected in the higher customer acquisition costs (up 40.4 percent) and in the decline in EBITDA of 44.4 percent as compared with the first six months of 2005.

T-Mobile's business in countries in Central and Eastern Europe is doing well. In the Czech Republic and Slovakia, for example, T-Mobile's service revenues rose by 12.8 percent and 15.6 percent respectively compared with the first half of 2005. T-Mobile's customer development in Central and Eastern Europe is also progressing. Growth rates in this region in the same period of 2005 were between 4.9 percent (T-Mobile Hungary) and 22.5 percent (T-Mobile Croatia).

T-Mobile's results in Austria are also extremely positive. The acquisition of tele.ring expanded the customer base by 52 percent to 3.1 million compared with mid-2005. Compared with the first six months of 2005, EBITDA rose by 19.1 percent to EUR 137 million. Total revenue climbed in the comparative periods by 15.4 percent to EUR 502 million.

Key figures for the T-Mobile Group (Download PDF).

About T-Mobile International
T-Mobile International is one of the world's leading companies in mobile communications. As one of Deutsche Telekom`s three strategic business units, T-Mobile concentrates on the most dynamic markets in Europe and the United States. By HY 2006, more than 90 million mobile customers were served by companies of the Deutsche Telekom group. And all that over a common technology platform based on GSM, the world's most successful digital wireless standard. This also makes T-Mobile the only mobile communications provider with a seamless transatlantic service.

T-Mobile also is partner of FreeMove, an alliance formed by four of Europe's leading mobile companies - Orange, TIM (Telecom Italia Mobile) T-Mobile and TeliaSonera - to help their customers communicate as easily while travelling abroad as they do at home.

For more information about T-Mobile International, please visit www.t-mobile.net.

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.