Deutsche Telekom enters the market with a new corporate pillar:

T-Systems offers key accounts information technology and telecommunications from a single source for the first time T-Systems International GmbH is launched as Europe's second biggest systems house for information technology (IT) and telecommunications. Deutsche Telekom's new pillar offers key accounts in more than 20 countries classical IT and telecommunications services from a single source as well as solutions from the convergence area of both markets.

The business strategy of the new Frankfurt-based service enterprise is centred on the convergence of IT / telecommunications technologies, products, services and networks and the e-business solutions evolving from this process. In Western Europe alone, this rapidly expanding market is anticipated to produce an annual growth of 65 percent until the year 2004.

"We expect to contribute as much to Deutsche Telekom's total revenue from this market in five years' time as from our current core business, the telephone service," emphasised Josef Brauner, Member of the Board of Management of Deutsche Telekom for Sales and Customer Care and Chairman of the Supervisory Board of T-Systems at the launch of T-Systems before the opening of the 10th International Press Colloquium in Berlin.

The new Telekom pillar bundles the expertise of 37,000 employees and accounts for about EUR 11 billion in revenues. More than 10,000 employees work in the field of systems integration, for instance, which makes this section of T-Systems one of Germany's biggest software producers.

Said Christian A. Hufnagl, Chairman of the Managing Board of T-Systems, at a press conference in Berlin on Wednesday: "The objective of T-Systems is to become the market leader in Europe by the year 2004 and to develop into one of the leading global players with a considerable market share. Internet and globalisation speed up the reorganisation of our customers' classical value chains. In order to cover the growing demand for complex and networked e-business solutions, we offer comprehensive and integrated IT / telecommunications solutions worldwide."

In addition to offering consistent solutions throughout the value chain, T-Systems also covers all phases of system support, ranging from consulting to development and operation. Hufnagl explained: "In order to optimise our service for the customer, we have positioned ourselves according to industries and services on a global scale."

T-Systems is geared to the Group's 4-pillar strategy, based on which Deutsche Telekom tackles the TIMES markets globally: Today, telecommunications, information technology, multimedia, entertainment and security services are among the driving forces behind innovation, economic growth and changes in society worldwide.

BackgroundWith 37,000 employees and total revenues of about EUR 11 billion, T-Systems is the second biggest systems house in Europe. In addition to mobile communications, internet communication and network access, Deutsche Telekom has defined the systems solutions business as one of its four strategic growth areas. This new enterprise will be first to bundle its global expertise in terms of telecommunications and information technology (IT). In this context, T-Systems will benefit from the long-standing experience of debis IT Services - a joint venture of Deutsche Telekom AG (50.1 percent) and Daimler-Chrysler Services (debis) AG (49.9 percent) - and from Telekom's expertise in the field of telecommunications.In September 2000, the Federal Cartel Office approved Deutsche Telekom's majority stake in debis IT Services without restrictions. The new enterprise T-Systems will start up in Germany, and in more than 20 other countries, in February 2001.Management of T-Systems International GmbH:

For more information on the company and its services, please refer to:

http://www.t-systems.de

Kontakt: T-SystemsPress and Public Relations Stefan KönigPhone: 0 69/6 65 31-1 76Fax: 0 69/6 65 31-1 39E-Mail: Stefan.Koenig01@telekom.de