Increase in revenue to EUR 48.3 billion in the 2001 financial year

The proportion of Group revenue generated outside Germany increased to over 27 percent - 5.8 percent growth in revenue in domestic market - EBITDA increased by 17 percent to EUR 15.1 billion - T-Mobile increases number of customers by 40 percent to 67 million - T-Systems served more than 1,500 key accounts - T-Online increases number of customers by 35 percent to 10.7 million customers - World's leading position further strengthened with over 20 million ISDN channels For Deutsche Telekom, the 2001 financial year was once again marked by strong growth rates with an increase in revenue of 18 percent to EUR 48.3 billion. Our international business has made a disproportionately large contribution to this development. International revenue increased more than 70 percent over the previous year - from EUR 7.8 billion to EUR 13.2 billion. The proportion of the Group revenue generated outside Germany thus increased from 19 to over 27 percent. In contrast to the general trend, revenue on the domestic market increased 5.8 percent. The operating results of the Group were also further increased in the 2001 financial year: EBITDA - adjusted for special influences - rose by around 17 percent to EUR 15.1 billion. The Group shows a net loss of EUR 3.5 billion for the 2001 financial year, due in particular to the amortization and depreciation of investments in new growth areas in the past years which, however, have no impact on cash flows. The cash generated from operations clearly experienced positive growth with an increase of 25.7 percent to EUR 16.3 billion.

Dr. Ron Sommer, Chairman of Deutsche Telekom's Board of Management, said on Tuesday during the Shareholders- Meeting held in the Kölnarena, "A glance at our recent past underscores Deutsche Telekom's positive development. In only four years- time, our company was able to increase revenue from EUR 34.5 billion to EUR 48.3 billion or approx. 40 percent. These figures impressively demonstrate our Group's growth potential."

T-Mobile : strong growth in all markets T-Mobile has increased revenue by some 40 percent. This strong growth can be attributed in the main to the initial consolidation of VoiceStream. The trend in customer numbers should be viewed just as positively: Taking all minority and majority shareholdings into consideration, the number of mobile phone customers grew by some 20 million to some 67 million or by approx. 40 percent. In Germany, T-Mobile was able to increase its subscriber base by around 4 million compared with the previous year. With more than 23 million customers, T-Mobile Deutschland has further strengthened its market leadership. The VoiceStream subsidiary made a disproportionately large contribution to this trend, ending the year 2001 with a record quarter: In the fourth quarter alone, it expanded its customer base by almost 670,000 to 7 million in total for an increase of 46 percent.

In 2001, we set up trial networks in Munich, Hanover, Vienna and London, and carried out successful field tests. In Germany, we will have built networks in around 20 cities by the end of the year. In Great Britain and in Austria, too, expansion will be an ongoing issue.

Commenting on the role of T-Mobile for the Group as a whole, Dr. Ron Sommer said, "At present, mobile communications provides the strongest impetus for revenue and EBITDA growth within the Deutsche Telekom Group. This was the case last year and will apply to an even greater degree in the present financial year."

T-Com : despite volume growth slight drop in revenue

As regards T-DSL, a breakthrough was achieved in the mass market last year. T-Com was able to gain 1.6 million new customers, and the number of contracts sold rose to 2.2 million in total by the end of the year. The demand for ISDN lines also continued at the high level: The number of ISDN channels was significantly increased by 18 percent to more than 20 million. T-Com was thus able to further strengthen its leading position worldwide. Revenue from subscriber line charges - including those for ISDN and T-DSL - increased by 6 percent to EUR 6.5 bn. The company succeeded in stabilizing its market share in the fixed network sector on the fiercely competitive German market for seven quarters. Over nine million Aktiv-Plus customers contributed to this.

"There is a great future for our fixed network," Dr. Ron Sommer said in Cologne. "Volume growth alone speaks for this assessment. The raised subscriber line charges, which we introduced on May 1, will generate significant momentum on the revenue side - resulting in some EUR 250 million in extra revenue per year."

T-Systems increases revenue and expands market presence Since February 2001, T-Systems has been operating on the market structured as a new division. Some 1,500 key account customers from a variety of industries are supported by T-Systems , which was the result of several Deutsche Telekom subsidiaries being brought together with the former debis Systemhaus. T-Systems has significantly increased its revenue by about 29 percent. There is also a strong consolidation effect here, resulting from the acquisition of debis Systemhaus. When adjusted for this effect, T-Systems accounted for growth of more than seven percent in the 2001 financial year.

T-Online: convincing growth and increasing profitability

The T-Online group ended the 2001 financial year with an increase in customer numbers by about 35 percent to about 10.7 million. T-Online managed to increase user intensity even more: the number of call minutes rose by 84 percent. These developments are also reflected in an increase in revenue. Group revenue was up 28.5 percent on the previous year and came to EUR 1.4 billion. T-Online succeeded in reducing the EBITDA loss quarter-on-quarter. In the third quarter of 2001, its German business activities showed positive EBITDA for the first time. For the T-Online group as a whole, i.e. including the foreign subsidiaries, a positive EBITDA is expected for 2002, one year earlier than planned.

First quarter in 2002: positive operational development continued Revenue for the Group increased by 15 percent compared with the same period last year to EUR 12.8 billion. The consolidation of VoiceStream played a key role in this figure, since it was not one of the companies included in the consolidated financial statements for the first quarter of 2001. International revenue rose from EUR 2.3 billion to EUR 4.3 billion, representing growth of 86 percent.

On a Group basis, EBITDA increased by 4.4 percent to EUR 3.8 billion compared with the same period last year. T-Mobil doubled its EBITDA, a factor that can be attributed to the integration of VoiceStream as well as to revenue growth and cost-savings. T-Systems improved its EBITDA by 76 percent compared with the same period last year. EBITDA at T-Online was positive again for the first time since June 2000. EBITDA in the T-Com segment was down slightly.

Growth in customer figures was highly encouraging. T-Mobile , for example, increased its customer numbers in the majority-owned subsidiaries in Germany, the U.S., Great Britain, Austria and the Czech Republic by 45 percent compared with the first quarter of 2001 and even by 51 percent in its minority holdings in Poland, Russia and the Netherlands. The T-Online group increased its customer numbers again by over half a million in the first quarter. The number of ISDN channels rose by 13.4 percent to a good 21 million. Compared with the same quarter last year, the number of T-DSL lines marketed increased 2.5 times to 2.4 million lines.