Third quarter 2005: T-Mobile strengthens its No. 1 position

• T-Mobile services still used by the largest number of Czech customers
• Financial indicators constantly growing - total revenues exceed CZK 20.5 billion, EBITDA reaches almost CZK 9.7 billion
• Significant customer interest in data services

Prague, 9 November 2005 - The third quarter of 2005 has brought confirmation of T-Mobile's leadership position in the Czech market in terms of the number of active customers. The number of customers who were using T-Mobile services as of the end of September grew 10.2% compared to the same period last year. The services of the operator with the largest number of customers are thus now used by 4.553 million clients. The success in terms of the high customer additions is also accompanied by positive financial results - growth in EBITDA (by 8.3%) and total revenues (by 6%). Interest in the use of non-voice services, particularly data services, is also growing - their share in the total revenues per user has reached 22 percent.

"The results achieved clearly confirm our No. 1 position and are proof of a highly positive trend. In the increasingly competitive environment, we are not only able to increase customer numbers but also improve our financial figures in the long term," says Otakar Král, Executive Vice President Finance at T-Mobile Czech Republic.

The demand for mobile services has not decreased even in the third quarter of this year. A total of 4.553 million clients rely on T-Mobile, and the operator has thus increased its lead over its closest competitors. The group of contract customers has grown significantly by 170 thousand; as many as 1.22 million customers chose a tariff programme, which is 16.2% more than a year before.

The number of prepaid Twist card owners increased year-on-year by more than a quarter of a million and T-Mobile thus maintained its leadership position in this area. The number of new additions also grew faster - during the first 9 months of this year, a total of 193 thousand customers decided to use the services of the largest Czech operator, which is almost six percent more compared to the same period last year.

In the third quarter, the following companies and institutions became part of T-Mobile's family of business customers: Czech Commerce Inspection, Berger Bohemia, the Police of the Czech Republic, Administration of the City of Prague, Pfizer, Glaverbel Czech, MANPOWER and the Municipality of Skuteč. The fact that business clients are happy with the operator's services is proved by the fact that a number of distinguished companies and institutions have extended their contracts, for example the Administration of the Krkonoše Natural Park, České Radiokomunikace, Shell Czech Republic, Daimler Chrysler Automotive and Panasonic Mobile & Automotive Systems Czech.

From the beginning of July until the end of September 2005, T-Mobile acquired 90 thousand customers - 42 thousand of them chose one of the tariff programmes, 48 thousand opted for a prepaid card. Customer additions were thus 63% higher than in the third quarter of last year.

The positive operating results again contributed to increasing T-Mobile's long-standing financial performance. EBITDA (earnings before interest, tax, depreciation and amortization) increased by 8.3% to CZK 9.669 billion. Compared to the same period of the previous year, the EBITDA margin increased by one percentage point, reaching 47.1%. The positive trend has been confirmed by the total revenues, which grew by 6% to reach more than CZK 20.5 billion.

One of the priorities of T-Mobile's strategy is data services - this is reflected not only in the 154% increase in the volume of data transmitted but also in the total revenues generated by non-voice services - the share of these services grew year-on-year by one percent to the existing 22 percent.

Data traffic in the T-Mobile network should continue to grow significantly. On 19 October, T-Mobile was the first operator to launch a UMTS network using TDD technology. The service, called Internet 4G, provides users with one of the fastest methods of mobile internet access in Europe. Customers thus get a full-fledged alternative to ADSL access via fixed lines. Customers can also choose other variants of internet access via EDGE or GPRS.

	9 months of 2005	9 months of 2004	Change in %
Number of customers (´000)	4 553	4 130	10.2
Contract customers	1 220	1 050	16.2
Twist customers	3 333	3 080	8.2
New customers* (´000)	193	183	5.7
Contract customers	116	161	(28.2)
Twist customers	78	22	255.6
Total revenues (CZK mil)	20 514	19 347	6.0
Revenues from services	19 271	18 271	5.5
Net profit (CZK mil)	4 492	3 615	24.3
EBITDA (CZK mil)	9 669	8 931	8.3
EBITDA margin - total revenues* (%)	47.1	46.2	1.0 pp
EBITDA margin - revenues from services (%)	50.2	48.9	1.3 pp
ARPU including foreign visitors (CZK)	483	503	(4.0)
Share in non-voice services in ARPU (%)	22.0	21.0	1.0 pp

Note: *Rounded off
Financial resultsin accordance with IFRS

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.