T-Mobile International records strong revenue and customer growth in the first quarter 2007

• Now nearly 110 million customers on T-Mobile International networks
• Double-digit growth in customers, revenue and EBITDA
• T-Mobile Germany increases postpaid customer base by 250,000
• T-Mobile USA adds nearly a million customers in Q1

Bonn, May 10, 2007 - In the first quarter of 2007, T-Mobile International raised its customer number to over 109 million, an increase of nearly 25 percent compared to the same period the previous year. T-Mobile USA provided the highest customer growth. In addition, the Polish operator PTC with more than 12 million customers and tele.ring with 1.1 million customers (acquired by T-Mobile Austria in 2006) were included in the year-on-year comparison for the first time. Total revenue in the first quarter was EUR 8.4 million, a growth of 10.9 percent year-on-year. With that, the T-Mobile figures constitute 53 percent of the overall Deutsche Telekom revenue. EBITDA for T-Mobile International grew in the first quarter 11.4 percent to EUR 2.5 billion. The EBITDA margin stayed stable at 30.2 percent, which counts as average in the Group.

T-Mobile continues to successfully execute its data strategy. In Europe, T-Mobile counted 2.2 million customers of its unique web'n'walk product, which offers full access to the Internet. The number of web'n'walk users increased by 206,000 customers in the first quarter. Non-voice revenues excluding SMS and including T-Mobile USA went up 31 percent year-on-year, increasing from 321 million to 422 million euros in the first quarter.

"In addition to the positive development by the newly consolidated companies, we have seen solid growth in nearly all of our markets, especially in the USA but also in Central and Eastern Europe, proving our exceptional strength in the latter regions," says Hamid Akhavan, responsible for mobile operations on the Board of Deutsche Telekom and CEO of T-Mobile International.

T-Mobile USA added about 980 thousand customers in the first quarter. That brings its customer number to over 26 million. The attractive myFaves service is the most successful offering of T-Mobile USA and the key reason for the increase in high-quality customers.

Despite the declining value of the US dollar, T-Mobile USA contributed the highest EBITDA (EUR 935 million; US$ 1.226 billion) in the Group, a year-on-year growth of 11.2 percent on a dollar basis. Revenue went up by 12.7 percent from 4.033 to 4.545 billion US$. In January, T-Mobile USA received the highest ranking in the customer care study from J.D. Power and Associates for the fifth consecutive period.

T-Mobile Germany was able to also record growth in total customers, with an increase of more than 9 percent for a total of 33 million customers. However, for the first time in Q1 2007 - in accordance with the practice of other operators - less prepaid customers are withdrawn from customer lists because their accounts are valid for an even longer time. T-Mobile Germany continued to focus on high-value postpaid customers. The postpaid customer base increased by 250,000. Their ARPU (Average Revenue Per User) of more than EUR 31 is much higher than that of prepaid customers.

Furthermore, T-Mobile Germany added 251,000 new customers for its T-Mobile@home product, raising the T-Mobile@home customer base to 1.41 million. T-Mobile@home enables cheaper incoming and outgoing calls close to landline price level within a predetermined area.

Due to the overall 11 percent decrease in price level in the market and regulatory cut-offs in mobile termination charges in the last year, revenue declined by 2.6 percent. Despite intense competition, the revenue decline was lower than the 4.7 percent drop experienced in 2006.

T-Mobile UK reports significant year-on-year growth in revenue and EBITDA. Revenues went up 12.9 percent to EUR 1.17 billion, while EBITDA was up 34.9 percent to EUR 224 million. In addition, ARPU went up 15.4 percent to EUR 30 per month. T-Mobile UK is currently the only UK mobile operator to have deployed HSDPA fully across its 3G network with over 3 Mbit/s currently being rolled out. Its 3G network reaches over 84 percent of the population.

Nearly all T-Mobile companies were able to bring down SACs (Subscriber Acquisition Costs) per customer, led by T-Mobile Netherlands with a year-on-year reduction of 59.1 percent, which helped it to achieve a 190.5 percent increase in EBITDA to EUR 61 million.

Key figures for the T-Mobile Group (incl. fully consolidated subsidiaries)

Customers (thousands)	Q1/06	Q4/06	Q1/07	Delta% Q1/07 vs. Q1/06	Delta% Q1/07 vs. Q4/06
T-Mobile International1,2,3,4	87 675	106 419	109 206	24,6 %	2,6 %
T-Mobile Deutschland (GER)2	30 246	31 398	33 049	9,3 %	5,3 %
T-Mobile USA	22 725	25 041	26 020	14,5 %	3,9 %
T-Mobile UK1	16 361	16 905	16 734	2,3 %	-1,0 %
T-Mobile Netherlands	2 329	2 552	2 592	11,3 %	1,6 %
T-Mobile Austria3	2 095	3 180	3 139	49,8 %	-1,3 %
T-Mobile CZ (Czech Republic)	4 648	5 049	5 109	9,9 %	1,2 %
PTC (Poland)	-	12 228	12 373	-	1,2 %
T-Mobile Hungary	4 222	4 431	4 478	6,1 %	1,1 %
T-Mobile Slovensko (Slovakia)	2 010	2 201	2 223	10,6 %	1,0 %
T-Mobile Hrvatska (Croatia)	1 957	2 158	2 192	12,0 %	1,6 %
T-Mobile Macedonia	877	945	955	8,9 %	1,1 %
T-Mobile Montenegro	203	332	342	68,5 %	3,0 %

(Financial figures of T-Mobile including consolidation effect, unaudited German punctuation in the following tables) 
 

1 Virgin Mobile is only included in the customer numbers
2 As a result of court proceedings against competitors, T-Mobile Deutschland changed its deactivation policy at the beginning of 2007 in favor of its prepaid customers. These customers can now use their prepaid credit longer than before. Accordingly, in the first quarter of 2007, far fewer customers were deactivated. Most of the reported first-quarter increase in customers was due to this change. Approximately 400,000 prepaid customers resulted from the use of pre-activated prepaid cards in the context of special customer acquisition measures. Historical figures were not adjusted.
3 As of Q2/2006 TMA incl. tele.ring
4 PTC consolidated as of November 1, 2006
5 Excl. 18 Mio. euro of special effects in Q1/07

This release (particularly the chapter titled "Outlook") contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. They are generally identified by the words "expect," "anticipate," "believe," "intend," "estimate," "aim," "goal," "plan," "will," "seek," "outlook" or similar expressions and include generally any information that relates to expectations or targets for revenue, adjusted EBITDA or other performance measures. Forward-looking statements are based on current plans, estimates and projections. You should consider them with caution. 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 company's Form 20-F report filed with the U.S. Securities and Exchange Commission. Among the relevant factors are the progress of Deutsche Telekom's workforce reduction initiative and the impact of other significant strategic or business initiatives, including acquisitions, dispositions and business combinations and cost saving initiatives. In addition, regulatory rulings, stronger than expected competition, technological change, litigation and supervisory developments, among other factors, may have a material adverse effect on costs and revenue development. 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 can offer no assurance that its expectations or targets will be achieved. Deutsche Telekom does not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise. Deutsche Telekom does not reconcile its adjusted EBITDA guidance to a GAAP measure because it would require unreasonable effort to do so. As a general matter, Deutsche Telekom does not predict the net effect of future special factors because of their uncertainty. Special factors and interest, taxes, depreciation and amortization (including impairment losses) can be significant to the company's results.

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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.