2004 Results: Healthy Growth in a Maturing Market

• T-Mobile 3rd year in a row preferred choice among customers
• Customers switch to calling plans for better value for money
• Total revenues grew by 8 percent to CZK 26.4 billion; Net profit almost stable at CZK 4.2 billion
• Total number of minutes carried up by 13.6 percent, SMS sent up by 8.7 percent

Prague, 3rd March 2005 - For a third year in a row, T-Mobile has managed to attract the most new customers for the products and services it offers on the Czech market. The number of T-Mobile's users grew by 10.5 percent to 4.36 million in total with growth in minutes carried outpacing that, growing at 13.6 percent as compared to the year 2003.

By far the fastest growth was marked among contract customers - it reached 24,3 percent. This is a continuation of a trend from the previous year. In 2004, TMCZ further strengthened its market position in terms of post-paid customers, welcoming the one millionth post-paid customer in its network in May 2004.

"The growth in post-paid customers clearly reflects the fact that users are choosing the best value for money on the market and are prepared to make a commitment when they have found it. We feel flattered that for a third year in a row the most new customers have entrusted us," says Roland Mahler, Managing Director of T-Mobile Czech Republic.

The year also brought about success among business customers. Independent research has confirmed T-Mobile to be the preferred choice among business customers (51%). T-Mobile  is providing mobile communications services to the largest number of business entities on the Czech market. Among business clients, a host of household business names have decided to either prolongue or take out new contracts with T-Mobile. They include: Česká televize, SKANSKA CZ, Výtahy Schindler, OCÉ-Česká republika, Česká biskupská konference, Stavby silnic a železnic, OMV, Ernst&Young, Gorenje, Policie ČR, Parlament ČR - Senát, Česká inspekce životního prostředí, ČSOB, Logica CMG etc.

"Once again the strength and reliability of an international player has been confirmed in figures. Our business users tell us they want solid services at home and an operator they can rely on while abroad. T-Mobile can meet both those needs," added Roland Mahler. To better serve the needs of the business customers, T-Mobile launched another first on the Czech market during 2004. EDGE was launched in November 2004 as the first truly mobile broadband Internet access technology on the local market.

		2004	2003	% change
Number of customers		4 360	3 947	+10.5
postpaid		1 105	889	+24,3
prepaid		3 255	3 058	+6,4
New customers		413	438	-5,8
postpaid		216	218	-0,9
prepaid		197	220	-10,6
Total revenues (CZK mil)		26 389	24 442	+8,0
EBITDA (CZK mil)		11 533	10 785	+6,9
Net profit (CZK mil)		4 236	4 423	-4,2
ARPU blended (CZK)		470	491	-4,4

Financial results stated in accordance with the German GAAP.

The company was also successful on the financial front with total revenues growing at a healthy 8 percent to CZK 26.4 billion. EBITDA was also up by 6.9 percent to CZK 11.5 billion. Net profit amounted to CZK 4.2 billion, down 4.2 percent as compared to the year 2003. ARPU was also down by 4.4 percent to CZK 470.

"The financial indicators clearly show that the market is maturing. However, it is worth pointing out that the growth in revenues clearly indicates that the new customers have not been won at any cost and we are not planning to change this strategy in the future," says Otakar Král, Executive Vice-President Finance, T-Mobile Czech Republic.

 "According to first indicators, outlook for this year looks also very good. We have quite a number of new value-for-money services in our sleeve and we believe they will attract our current and prospective customers as the things we offered in 2004 did. One of them will be for instance our even improved data strategy, which we intend to introduce soon," says Roland Mahler.

T-Mobile International: Customer Growth Overview

Number of customers (in million)	31.12.2004 FY 2004	30.12.2003 FY 2003	change (in million)	% change
T-Mobile International	69.2	61.1	8.1	13.3
T-Mobile USA	17.3	13.1	4.2	32.1
T-Mobile UK*	15.7	13.6	2.1	15.4
T-Mobile Czech Republic	4.4	3.9	0.5	12.8
T-Mobile Germany	27.5	26.3	1.2	4.6
T-Mobile Austria	2.0	2.0	0	0
T-Mobile Netherlands	2.3	2.0	0.3	15.0

* incl. Virgin Mobile

The success on the Czech market has been mirrored across the T-Mobile International Group, with growth among new customers in the US reaching 32 percent. Average growth in new customers across  T-Mobile Group stood at 13.3 percent - a remarkable achievement especially considering the nearly saturated markets of Western Europe.

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.