Financial Results 2009

• Strong performance in Germany and at T-Systems
• OTE contributes EUR 2 billion to Group's adjusted EBITDA
• Board of Management and Supervisory Board propose dividend of EUR 0.78

Deutsche Telekom has achieved its revised financial guidance for the full year 2009, increasing the Group’s profit margin.

While revenue increased 4.8 percent to EUR 64.6 billion compared with 2008, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew 6.2 percent to EUR 20.7 billion.

This resulted in an adjusted EBITDA margin of 32.0 percent, up from 31.6 percent the previous year. The increase in profitability is even more marked in the fourth quarter of 2009: while revenue increased 0.6 percent year-on-year, adjusted EBITDA rose by 8.6 percent.

• Net revenue of the Group increased by 6.2 percent year-on-year in the first nine months of 2009 to EUR 48.4 billion.
• Domestic net revenue was EUR 21.0 billion, EUR 0.6 billion lower than in the first nine months of 2008. International net revenue increased year-on-year
  by EUR 3.5 billion to EUR 27.4 billion. The proportion of net revenue generated outside Germany increased from 52.6 percent to 56.7 percent.
• Group EBITDA in the first nine months of 2009 rose to EUR 15.4 billion compared with EUR 14.4 billion in the prior-year period. Group EBITDA adjusted
  for special factors1 increased from EUR 14.8 billion in the prior-year period to EUR 15.6 billion.
• Net profit amounted to EUR 0.4 billion in the first nine months of 2009, compared with a net profit of EUR 2.2 billion in the first three quarters of 2008.
• Net profit adjusted for special factors amounted to EUR 2.5 billion, slightly lower than in the first nine months of 2008.
• Free cash flow before dividend payments was EUR 5.1 billion compared with EUR 5.8 billion in the first three quarters of 2008.
• Net debt increased by EUR 4.2 billion compared with the end of 2008 to EUR 42.4 billion.

Deutsche Telekom posts good figures to continue the positive development of the prior quarter. The Group therefore confirms its guidance for the year as adjusted in April despite the recent negative development in exchange rates, particularly the marked weakness of the U.S. dollar against the euro over the course of the year. Cost-cutting measures and improvements in efficiency continue to bear fruit: Deutsche Telekom posted year-on-year increases in profitability in all operating segments between July and September.

Having recorded positive business development in the second quarter, Deutsche Telekom is well on its way to achieving its targets for 2009. The Group increased its net revenue by 7.4 percent in the second quarter to EUR 16.2 billion and EBITDA adjusted for special factors by 8.4 percent to EUR 5.3 billion. Adjusted net profit grew by 19.4 percent year-on-year in the second quarter to EUR 0.8 billion. The Greek company OTE contributed EUR 1.5 billion to net revenue and EUR 0.5 billion to adjusted EBITDA of the Group in the second quarter of 2009.

• Reported revenue increased by 6.2 percent to EUR 15.9 billion.
• At EUR 4.8 billion, the Group's adjusted EBITDA was up 2.7 percent on the previous year.
• Adjusted net profit declined by 12.7 percent to EUR 0.7 billion.
• The number of mobile customers increased by 6.8 percent to a total of 148.4 million.
• The number of DSL lines increased year-on-year by 8.0 percent to 17.0 million.