T-Mobile International: succesfull first half of year 2008

• Customer, revenue and EBITDA growth
• Customer base is higher than 125 millions
• T-Mobile again an important growth driver for Deutsche Telekom  

August 7, 2008 - T-Mobile Europe continued its growth course for the second quarter of 2008 recording strong year-on-year growth in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), up 5.2 percent on the second quarter of 2007. The adjusted EBITDA margin also rose in the second quarter up by 1.3 percentage points on the second quarter of 2007 to 35 percent, while total net revenues increased by 1.3 percent.

T-Mobile Europe also succeeded to grow its customer base to just over 93.5 million in the second quarter, a 10.2 percent year-on-year increase. The strong customer gain is partly explained by the consolidation of Orange Nederland as of October 1, 2007. In the profitable contract business, Mobile Communications Europe recorded a strong growth in customer base in the second quarter of 2008, up 10.1 percent on the previous quarter.

"These are very solid results achieved despite challenging market conditions," said T-Mobile International CFO Katharina Hollender. "Mobile Europe has recorded solid year-on-year growth in customers, revenues and adjusted EBITDA, with most markets contributing to this trend. Germany has performed very strongly in a difficult market, and the financials reflect this competitiveness. T-Mobile USA recorded another strong growth quarter, but the weak dollar is significantly reducing this impact on our financials, as has the effect of the weak pound in the UK. A particular highlight in Europe was the strong growth in data revenues excluding SMS, which grew 45 percent over the second quarter of 2007. Another clear highlight was the exceptional performance of our operations in the Czech Republic, Poland and Slovakia."

T-Mobile Germany has performed strongly in a very competitive market, recording an adjusted EBITDA margin of 39.6 percent in the second quarter, 2.7 percentage points more than in the second quarter of 2007. Despite a 2.8 percent decrease in total revenues for the quarter to 1.95 billion euros, the adjusted EBITDA increased 4.3 percent over the same quarter of 2007 to 773 million euros. In an highly competitive market environment T-Mobile Germany could successfully raise profit by controlled and intense cost cutting. Furthermore, with approximately 38 million customers T-Mobile retains its position as the biggest mobile operator in Germany. The company also added 204,000 new contract customers in the second quarter, a 15.3 percent increase over the same quarter of 2007.

T-Mobile USA again performed strongly in the first half year of 2008. However, much of the positive operational growth in the USA has been countered by the currency effect of a weak dollar. While total revenues in dollars actually grew by 14.3 percent over the first half year of 2007, this represents a 0.8 percent decrease when converted to euros.

T-Mobile USA also recorded another quality customer growth quarter, expanding its base by 17.1 percent year-on-year to reach 31.5 million customers. These figures include strong organic growth as well as the acquired SunCom customers. In the second quarter T-Mobile USA won 1.2 million myFaves customers, and now has 6.7 million customers on the community tariff.

T-Mobile UK net revenues fell to 2.07 billion euros in the first half year of 2008, an 11.5 percent decrease compared to the same period last year. However in the local currency, the pound, this represents an increase of 1.7 percent. As well as the currency effect, an intensely competitive environment in the UK is also impacting on the financials.

T-Mobile operations in Central and Eastern Europe were again on track in the second quarter of 2008. Double-digit year-on-year growth in revenues and adjusted EBITDA was recorded by T-Mobile Czech Republic, PTC in Poland and T-Mobile Slovakia. The mobile operations in Macedonia and Hungary were also operationally strong, recording double-digit growth in adjusted EBITDA compared to the second quarter of 2007.

At T-Mobile Netherlands, the integration of Orange Nederland has been functioning well since its consolidation on October 1 2007. In the second quarter of 2008, the adjusted EBITDA margin grew 10.6 percentage points over the previous quarter. Netherlands is also one of three T-Mobile national companies, together with T-Mobile Germany and Austria that successfully launched the Apple iPhone 3G on July 11.

Katharina Hollender: "T-Mobile was again an important growth driver for Deutsche Telekom in the second quarter of 2008. Our challenge is to continue outperforming our competitors in highly competitive markets and further increase the competitiveness of our proposition."

T-Mobile International	June 30, 2008(thousands)	June 30, 2007(thousands)	Change(thousands)	Change%
Mobile customers a Total	125,002	115,046	9,956	8.7
in Europe	93,535	87,032	6,503	4.5
in the United States (T-Mobile USA)	31,466	28,014	3,452	12.3
T-Mobile Deutschland b	38,399	34,329	4,070	11.9
T-MobileUKc	16,794	16,786	8	0.0
PTC	12,830	12,525	305	2.4
T-Mobile Austria	3,298	3,148	150	4.8
T-Mobile Netherlands d	5,278	4,786	492	10.3
T-Mobile Czech Republic	5,313	5,140	173	3.4
T-Mobile Hungary	5,082	4,517	565	12.5
T-Mobile Croatia	2,543	2,222	321	14.4
T-Mobile Slovakia	2,330	2,226	104	4.7
Other countries e	1,669	1,353	316	23.4

Notes:
a  One Mobile Communications card corresponds to one customer. The total was calculated on the basis of precise figures and rounded to millions. Percentages are calculated on the basis of figures shown. Organic customer growth is reported for better comparability: Orange Nederland and SunCom customers were also included in the historic customer base.
b  As a result of court rulings against competitors, T-Mobile Deutschland changed its deactivation policy at the beginning of 2007 in favor of its prepay customers. These customers can now use their prepaid credit longer than before. Accordingly, in 2007 and the first half of 2008, far fewer customers were deactivated.
c  Including Virgin Mobile.
d  Consolidation of Online (formerly Orange Nederland Breedband B. V.) in the second quarter of 2008. The consolidation of Online has no effect on the number of customers of the TMNL group, as only Mobile Communications customers are shown.
e  "Other countries" includes T-Mobile Macedonia and T-Mobile Crna Gora (Montenegro).

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.