2006: Customers voted for T-Mobile

• The mark of 5 million customers surpassed
• The number of new customers increased by more than 50% year-on-year
• Excellent financial results - growth in revenues and EBITDA
• Favorable tariff plans, innovative services, added value

Prague, 1 March 2007 - The year 2006 was one of the most interesting periods in the Czech telecommunication market. Other international players entered the country and number portability was launched. The European Commission started to exert intense regulatory pressure on telecommunication markets. T-Mobile handled all this with honor: the Company introduced a number of new services, achieved a positive balance in number porting and celebrated its tenth anniversary by becoming the largest Czech mobile operator with over five million customers. T-Mobile currently reports the highest number of active SIM cards. Out of the total of 5.049 million customers, 1.8 million (36%) are contract customers. Total customer additions constituted the impressive total of 415,000. And financial results were also positive: the intensive effort to further increase efficiency helped improve the key financial indicators such as revenue growth (higher by 5.8%) and EBITDA (higher by 4.2%). The ARPU indicator also increased, by 2%, to CZK 492.

"We highly value our success, especially given the fact that we managed to maintain a very positive trend in the market where penetration reached 120 percent," says Roland Mahler, Managing Director of T­Mobile, adding: "We do not want to rest on our laurels, though. The way towards further value growth must be based on further increasing the quality of our products and customer care, and on closely and continually monitoring the needs of the different customer segments. This is the only way to gain the long-term confidence and loyalty of our customers. And these qualities will be among the key factors for successful performance in future."

Customers
In comparison with 2005, the number of T-Mobile's customers increased by 9% to the current 5.049 million. T­Mobile further strengthened its position in the contract customer segment. The number of contract customers is 1.809 million, which accounts for nearly 36% of the customer base. Customers using the Twist prepaid services numbered 3.24 million at the end of last year.

T-Mobile experienced the biggest enlargement of its customer base in the fourth quarter when it was in the home stretch with its Christmas offer of unlimited calls and SMS, gaining 226,000 new customers. T­Mobile registered customer additions of more than 415,000 for 2006, which represents a year-on-year increase of 51.2%.

The operator was also successful in terms of number porting, which started on 15 January 2006. The number of customers who decided to port their number to the T-Mobile network outweighed by nearly 5,000 the number of those who switched to another operator. Customers who left T-Mobile last year were mostly customers using pre-paid services while those who joined T-Mobile mostly chose a contractual relationship. This is fully in line with the Company's overall strategy, which is to further strengthen the contract customer segment. More than half of the numbers ported to the T-Mobile network belong to business clients.

The business customers that T-Mobile gained in 2006 included the Apostolic Church, ATLANTIK finanční trhy, a.s., C. S. CARGO, a.s., Czech Radio, ETA, a.s., FIAT ČR, spol. s r.o, Gumárny Zubří, a.s., Haas Fertigbau, spol. s r.o., Karosa, a.s., Kongresové centrum Praha, a.s, Lasselberger, a.s., Plzeňský Prazdroj, a. s., RWE Energy Customer Services CZ, a.s.  and the Management of Prague Castle.

Financial Results
T-Mobile achieved very good financial results in 2006: total revenues exceeded CZK 29.5 billion, net profit approached CZK 5.4 billion and the important EBITDA (earnings before interest, tax, depreciation and amortization) indicator rose by 4.2% compared with 2005, to CZK 12.7 billion. The achieved figures reflect both the enlargement of the customer base as well as the more intensive use of mobile services and T-Mobile's maximum effort to further enhance its operational excellence.

Services
In 2006, T-Mobile continued its strategy focused on the development of non-voice services and value-added services that are beginning to play an increasingly significant role. The Company continued to increase the availability of fast data transmission - the EDGE network currently covers more than 80% of the population. The Internet 4G services, which are considered capable of providing the fastest wireless access to the internet, are now also available outside of Prague. The UMTS TDD network, which allows operation of Internet 4G, now covers 50% of the population. The volume of transmitted data increased by more than 60% year-on-year.

T-Mobile plans to continue to provide services that bring something new and extend the possibilities of using mobile phones. In addition to corporate applications, such as remote data collection and property protection, T-Mobile has focused on the preparation of the commercial launch of "TV in Your Pocket". At the end of last year, the service was the subject of pilot testing with positive results. Nevertheless, the legal preconditions for the commercial launch of the service have not been met yet.

In the field of "classic" tariff plans, T-Mobile placed great emphasis on roaming. Last year, it introduced and later enhanced a new roaming add-on, Cestovatel (Traveler), which currently offers the best rates in the most popular destinations. The BAV SE service, intended for children and young people aged 6 to 26, also proved very successful.

"More and more customers now understand that the mobile network can fully replace fixed-line services, whether voice or data services," says Roland Mahler. "A mobile phone thus becomes a multimedia assistant, friend and guide thanks to which you are closer to your loved ones and to all things that make your life better."

2006 in figures

	2006	2005	Change (%)
Penetration (%)	119.7	111.2	7.6
Number of customers (´000)	5,049	4,634	9.0
Contract customers	1,809	1,288	40.5
Twist customers	3,240	3,347	(3.2)
New customers(´000)	415	274	51.2
Contract customers	522	183	185.1
Twist zákazníci	-106	91	n.a.
Total revenues (CZK million)	29,548	27,915	5.8
ARPU revenues (including visitors)	28,075	25,841	8.6
EBITDA (CZK million)	12,746	12,232	4.2
EBITDA margin - total revenues (%)	43.1	43.7	(0.6p)
EBITDA margin - ARPU revenues (%)	45.4	47.2	(1.8p)
Net profit (CZK million)	5,365	4,967	8.0
ARPU including visitors (CZK)	492	482	2.0
Share of non-voice services in ARPU (%))	21.1	21.4	(0.3p)

Non-audited financial results according to IAS/IFRS.

Presentation from press conference is available here.

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.