EX-99.1 2 a04-13086_2ex99d1.htm EX-99.1

Exhibit 99.1

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

Bellevue, November 11, 2004

T-MOBILE USA REPORTS THIRD QUARTER 2004 RESULTS

• 901,000 net new customers added in Q3 2004

• Net new customers totaled 3.2 million during the first three quarters of 2004, up from 2.2 million for the first three quarters of 2003

• $788 million in Operating Income Before Depreciation and Amortization (OIBDA) in Q3 2004, reaching a record OIBDA margin of 30%

• Net Income of $254 million in Q3 2004

T-Mobile USA, Inc. (“T-Mobile USA”) the U.S. operation of T-Mobile International AG & Co. KG (“T-Mobile International”), the mobile communications subsidiary of Deutsche Telekom AG (“Deutsche Telekom”) (NYSE: DT), today announced third quarter 2004 results. All financial amounts are in USD and are based on accounting principles generally accepted in the United States (“GAAP”) in order to provide comparability with the results of other U.S. wireless carriers. T-Mobile USA results are included in the consolidated results of Deutsche Telekom, but differ from the information contained herein as Deutsche Telekom reports its financial results in accordance with German generally accepted accounting principles.

In the third quarter of 2004, T-Mobile USA added 901,000 net new customers, compared with 1,092,000 added in the second quarter of 2004 and 670,000 in the third quarter of 2003. About 90% of the growth in the third quarter of 2004 came from new postpay customers, which currently comprise 89% of the customer base.

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

“This has been an award winning quarter for T-Mobile USA,” said Robert Dotson, President and CEO of T-Mobile USA. “J. D. Power and Associates, in several 2004 regional and national studies announced this past quarter, ranked T-Mobile highest in Customer Care Performance, Wireless Call Quality, Wireless Retail Satisfaction, and overall Customer Satisfaction for Wireless Telephone Users, all of which speaks strongly to our ability to deliver a quality customer experience across all parts of our operation. Our ongoing commitment to quality and value was the key to attracting the 901,000 net new customers we added this past quarter and in increasing our customer base by more than 24% since the first of the year.”

T-Mobile USA reported OIBDA of $788 million in the third quarter of 2004, up from $717 million in the second quarter of 2004 and $461 million in the third quarter of 2003. OIBDA margin (OIBDA divided by service revenues) was 30% in the third quarter of 2004, compared to 29% in the second quarter of 2004 and 24% in the third quarter of 2003. T-Mobile USA’s net income for the third quarter of 2004 was $254 million, improved from $240 million net income in the second quarter of 2004 and a $39 million net loss in the third quarter of 2003.

“T-Mobile USA continues to effectively balance strong customer growth with solid financial results”, said Rene Obermann, CEO of T-Mobile International and Member of the Board of Management, Deutsche Telekom. “OIBDA of $788 million this past quarter represents a 10% sequential increase from an already strong second quarter and a 71% improvement from the third quarter of 2003. This continued OIBDA improvement was achieved even with a 35% increase in the T-Mobile USA customer base over the past 12 months.”

T-Mobile USA service revenues, which consist of postpay, prepaid, and roaming and other service revenues, were $2.61 billion in the third quarter of 2004, up

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

from $2.46 billion in the second quarter of 2004 and $1.90 billion in the third quarter of 2003. In addition to high customer growth, revenue increases in 2004 reflect inclusion of two new components compared to 2003: Universal Service Fund (“USF”) recovery fees and regulatory cost recovery fees. Both items are explained further in the footnotes to Selected Data, below.

Average Revenue Per User (“ARPU”, as defined in the footnotes to the Selected Data, below) was $55 in the third quarter of 2004, consistent with $55 in the second quarter of 2004 and up from $54 in the third quarter of 2003. (After adjusting for USF and regulatory cost recovery fees, total ARPU was approximately the same in the third quarter 2003 as the third quarter of 2004.) Excluding the impact of USF and regulatory fees, postpay ARPU has trended upward for the past year, largely due to the ongoing growth of data services revenue, which now comprises 5.6% of postpay ARPU, compared to 5.0% in the second quarter of 2004 and 2.7% in the third quarter of 2003.

Postpay churn averaged 2.6% per month in the third quarter of 2004, up from 2.4% in the second quarter of 2004, and down from 2.7% in the third quarter of 2003. Blended churn, a mix of postpay and prepaid customers, was 3.0% in the third quarter of 2004, up from 2.8% in the second quarter of 2004 and down from 3.3% in the third quarter of 2003. The sequential increase in churn is primarily the result of an increase in the volume of postpay customers reaching their one-year service anniversaries.

The average cost of acquiring a customer, Cost Per Gross Add (“CPGA”, as defined in the footnotes to the Selected Data, below) was $301 in the third quarter of 2004, down from $318 in the second quarter of 2004, and $334 in the third quarter of 2003. The sequential improvement in CPGA is due to a number of factors, the most significant of which is lower dealer compensation.

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

The average cash cost of serving customers, Cash Cost Per User (“CCPU”, as defined in the footnotes to the Selected Data, below), was $24 per customer per month in the third quarter of 2004, an increase from $23 in the second quarter of 2004 and consistent with $24 in the third quarter of 2003. The sequential increase in CCPU is due to an increase in customer support and retention costs. (After adjusting for USF fees, CCPU would have been $1 higher in the third quarter of 2003 compared to the third quarter of 2004.) Capital expenditures were $453 million in the third quarter of 2004, down from $664 million in the second quarter of 2004 and up from $407 million in the third quarter of 2003. These capital expenditure totals do not include our share of investment in the network operations venture with Cingular Wireless LLC (“Cingular”) in New York, California and Nevada, which is reported as investments in and advances to unconsolidated affiliates. T-Mobile USA’s share of expenditures, on an accrual basis, in this venture was $124 million in the third quarter of 2004, down from $267 million in the second quarter. Capital expenditures continue to be focused on quality and capacity improvements in the GSM/GPRS network. Through the first three quarters of 2004, T-Mobile USA has added over 2,150 new cell sites, bringing the number of total cell sites to over 29,000, including sites in California and Nevada.

In addition to the results prepared in accordance with GAAP provided throughout this press release, non-GAAP financial measures are also included. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliation from the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below following Selected Data and the financial statements.

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

GET MORE HIGHLIGHTS

Get More Service…Excellence!!

T-Mobile USA’s ongoing commitment to providing excellent customer satisfaction earned the company highest honors in several independent studies announced by J.D. Power and Associates beginning in the third quarter: o In July, T-Mobile was ranked highest among national carriers, by a significant margin, in the 2004 Customer Care Performance Study. o In August, T-Mobile ranked highest in the 2004 Wireless Call Quality Performance Study in the Southeast and Southwest regions, and ranked highly overall in the study.

• In September, the 2004 U.S. Wireless Regional Customer Satisfaction Index Study ranked T-Mobile highest in all six geographic regions.

According to J.D Power, T-Mobile performed particularly well by demonstrating a competitive advantage in customer service, service plan options, cost of service and billing.

• In early fourth quarter, T-Mobile USA ranked highest out of the seven national wireless carriers in the Wireless Retail Satisfaction Performance Study.

Delivering First-Of-Its-Kind Converged Wireless Devices:

T-Mobile USA continued its leadership position in the third quarter by delivering first-of-its kind converged wireless devices that offer customers better ways to communicate:

• Building on the success of the first T-Mobile Sidekick, the company introduced the T-Mobile Sidekick II, which is already a hit with sports, television, film and music celebrities across the country.

• T-Mobile launched the exclusive RIM BlackBerry 7100t phone, a breakthrough innovation that packs all of the power of BlackBerry into a traditional phone design.

• T-Mobile introduced the HP iPAQ h6315 Pocket PC taking advantage of T-Mobile’s national GSM/GPRS wireless voice and high-speed data network, as well as the T-Mobile HotSpot Wi-Fi Internet service.

We Are Now In Even More “Places You Already Go”:

T-Mobile USA continued its wireless broadband leadership by expanding its TMobile

HotSpot Wi-Fi network to over 5,000 locations thanks, in part, to a new partnership with Accor Hotels. T-Mobile HotSpot customers can also use their

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

service in thousands of locations across Europe and Asia Pactific. The company is the only U.S. carrier to implement the 802.1x security standard across its network, reinforcing its emphasis on delivering a national carrier grade Wi-Fi network.

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

SELECTED DATA FOR T-MOBILE USA

(`000)	YTD 04		Q3 04		Q2 04		Q1 04		YTD 03		Q3 03
Covered population	226,000		226,000		224,000		224,000		224,000		224,000
Customers, end of period	16,295		16,295		15,394		14,302		12,113		12,113
thereof postpay customers	14,528		14,528		13,720		12,784		10,805		10,805
thereof prepaid customers	1,767		1,767		1,674		1,518		1,308		1,308
Net customer additions	3,167		901		1,092		1,174		2,197		670
Minutes of use/post pay customer/month	867		908		885		817		746		778
Postpaid churn	2.5	%	2.6	%	2.4	%	2.6	%	2.4	%	2.7	%
Blended churn	3.0	%	3.0	%	2.8	%	3.0	%	3.1	%	3.3	%
($/ month)
ARPU (blended)(1)	55		55		55		54		52		54
ARPU (postpay)	55		56		55		54		52		53
Cost of serving (CCPU)(2)	24		24		23		23		23		24
Cost per gross add (CPGA)(3)	315		301		318		326		322		334
($million)
Total revenues	8,441		3,035		2,809		2,597		6,003		2,216
Service revenues(4)	7,284		2,612		2,464		2,208		5,234		1,902
OIBDA(5)	1,997		788		717		492		1,269		461
OIBDA margin to service revenues	27	%	30	%	29	%	22	%	24	%	24	%
Capital expenditures(6)	1,716		453		664		599		1,187		407
Cell sites on-air(7)	29,056		29,056		28,803		27,857		25,455		25,455

Because all companies do not calculate these figures in the same manner, the information contained in this presentation may not be comparable to other similarly titled measures reported by other companies.

(1) Average Revenue Per User (“ARPU”) represents the average monthly service revenue we earn from our customers. ARPU is calculated by dividing total service revenues for the specified period by the average customers during the period and further dividing by the number of months in the period.

Blended ARPU in the third, second and first quarters of 2004 includes $0.86, $0.86 and $0.89, respectively, representing fees charged to our customers each quarter and remitted under the Universal Services Fund (“USF”) provision of the Telecommunications Act of 1996. We previously netted these fees in our financial statements. Reporting such amounts separately as revenues and network operating expenses has no impact on our operating

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

income, OIBDA or net income. Had we recorded USF fees separately as revenues and expenses in 2003, blended ARPU would have been approximately $1 higher per quarter for the year.

Also, blended ARPU in the third, second and first quarters of 2004 includes $0.78, $0.81 and $0.54, respectively, representing regulatory cost recovery fees we began including on postpay customer bills during the first quarter. The postpay fee has been fixed at $0.86 per month since the first quarter.

(2) The average cash cost of serving customers, or Cash Cost Per User (“CCPU”) is a non-GAAP financial measure and includes all network and general and administrative costs as well as the subsidy loss on equipment (handsets and accessories) sales unrelated to customer acquisition. This measure is calculated as a per month average by dividing the total costs for the specified period by the average total customers during the period and further dividing by the number of months in the period. We believe that CCPU, which is a measure of the costs of serving a customer, provides relevant and useful information to our investors and is used by our management to evaluate the operating performance of our consolidated operations. As noted above, our 2004 revenues and network operating expenses include USF fees. Inclusion of these fees in network operating expenses increased CCPU during the third, second and first quarters of 2004 by $0.86, $0.86 and $0.89, respectively. Had we reported USF fees similarly in 2003, CCPU would have been approximately $1 higher each quarter.

(3) Cost Per Gross Add (“CPGA”) is a non-GAAP financial measure and is calculated by dividing the costs of acquiring a new customer, consisting of customer acquisition costs plus the subsidy loss on equipment (handsets and accessories) sales related to customer acquisition for the specified period, divided by gross customers added during the period. We believe that CPGA, which is a measure of the cost of acquiring a customer, provides relevant and useful information to our investors and is used by our management to evaluate the operating performance of our consolidated operations.

(4) Service revenues include post pay, prepaid, and roaming and other service revenues.

(5) OIBDA is a non-GAAP financial measure, which we define as operating income before depreciation and amortization. In a capital-intensive industry such as wireless telecommunications, we believe OIBDA, as well as the associated percentage margin calculations, to be meaningful measures of our operating performance. OIBDA should not be construed as an alternative to operating income or net income as determined in accordance with GAAP, as an alternative to cash flows from operating activities as determined in accordance with GAAP or as a measure of liquidity. We use OIBDA as an integral part of our planning and internal financial reporting processes, to evaluate the performance of our senior management and to compare our performance with that of many of our competitors. We believe that operating income is the financial measure calculated and presented in accordance with GAAP that is the most directly comparable to OIBDA.

(6) Excludes our investment to fund capital expenditures in the network infrastructure venture with Cingular Wireless LLC (“Cingular”). We and Cingular share in the ownership and operation of the network in the New York City area, most of California and parts of Nevada. Network capital expenditures in these areas are shared between the parties. Our share of these capital expenditures is reflected as part of the accompanying Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Cash Flows in the line “Investments in and advances to unconsolidated affiliates.”

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

(7) Includes sites in New York, California and Nevada owned and operated by our network infrastructure venture with Cingular.

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

T-MOBILE USA

Condensed Consolidated Balance Sheets

(dollars in millions)

(unaudited)

	September 30, 2004			December 31, 2003
ASSETS
Current assets:
Cash and cash equivalents	$	108		$	148
Accounts receivable, net of allowance for doubtful accounts of $144 and $151, respectively	1,538			1,268
Inventory	698			291
Other current assets	330			421
	2,674			2,128
Property and equipment, net of accumulated depreciation of $3,027 and $2,416, respectively	6,439			6,087
Goodwill	10,689			10,689
Spectrum licenses	11,048			11,039
Other intangible assets, net of accumulated amortization of $779 and $657, respectively	46			168
Investments in and advances to unconsolidated affiliates	1,178			758
Other assets and investments	180			195
	$	32,254		$	31,064
LIABILITIES AND SHAREHOLDER’S EQUITY
Current liabilities:
Accounts payable	$	565		$	537
Accrued liabilities	1,097			845
Deferred revenue	331			276
Construction accounts payable	259			781
	2,252			2,439
Long-term debt	17			17
Long-term notes payable to affiliates	9,193			8,243
Deferred tax liabilities	3,503			3,410
Other long-term liabilities	218			232
Total long-term liabilities other than shares	12,931			11,902
Voting preferred stock	5,000			5,000
Total long-term liabilities	17,931			16,902
Commitments and contingencies
Shareholder’s equity:
Common Stock	35,440			35,440
Deferred stock compensation	(5		)	(15		)
Accumulated deficit	(23,364		)	(23,702		)
Total shareholder’s equity	12,071			11,723
	$	32,254		$	31,064

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

T-MOBILE USA

Condensed Consolidated Statements of Operations

(dollars in millions)

(unaudited)

	Quarter Ended Sep. 30, 2004			Quarter Ended Sep. 30, 2003			Year to date Sep. 30, 2004			Year to date Sep. 30, 2003
Revenues:
Post pay	$	2,370		$	1,678		$	6,567		$	4,592
Prepaid	144			133			415			408
Roaming and other services	98			90			302			233
Equipment sales	388			289			1,067			705
Affiliate and other	35			26			90			65
Total revenues	3,035			2,216			8,441			6,003
Operating expenses:
Network	556			372			1,540			1,046
Cost of equipment sales	573			428			1,594			1,070
General and administrative	496			406			1,372			1,128
Customer acquisition	622			549			1,938			1,489
Depreciation and amortization	295			354			1,008			1,048
Total operating expenses	2,542			2,109			7,452			5,781
Operating income	493			107			989			222
Other income (expense):
Interest expense	(175		)	(95		)	(432		)	(415		)
Equity in net losses of unconsolidated affiliates	(34		)	(26		)	(119		)	(66		)
Interest income and other, net	—			(1		)	(8		)	(44		)
Total other income (expense)	(209		)	(122		)	(559		)	(525		)
Income (loss) before income taxes	284			(15		)	430			(303		)
Deferred income tax expense	(30		)	(24		)	(93		)	(82		)
Net income (loss)	$	254		$	(39	)	$	337		$	(385	)

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

T-MOBILE USA

Condensed Consolidated Statements of Cash Flows

(dollars in millions)

(unaudited)

	Year to Date Sep. 30, 2004			Year to Date Sep. 30, 2003
Operating activities:
Net income (loss)	$	337		$	(385	)
Adjustments to reconcile net income to net cash provided by operating activites:
Depreciation and amortization	1,008			1,048
Deferred income tax expense	93			82
Amortization of debt discount and premium, net	(23		)	(8		)
Equity in net losses of unconsolidated affiliates	119			66
Stock-based compensation	10			14
Allowance for bad debts	(7		)	8
Other, net	(9		)	(2		)
Changes in operating assets and liabilities:
Accounts receivable	(262		)	(154		)
Inventory	(408		)	83
Other current assets	158			(4		)
Accounts payable	116			(45		)
Accrued liabilities	244			160
Net cash provided by operating activities	1,376			863
Investing activities:
Purchases of property and equipment	(1,716		)	(1,187		)
Acquisitions of wireless properties, net of cash acquired	(2		)	(8		)
Investments in and advances to unconsolidated affiliates, net	(539		)	(245		)
Other, net	(1		)	(7		)
Net cash used in investing activities	(2,258		)	(1,447		)
Financing activities:
Long-term debt repayments	—			(4,430		)
Long-term debt borrowings from affiliates, net	930			2,227
Equity increase	—			3,000
Book overdraft	(88		)	(65		)
Other, net				10
Net cash provided by financing activities	842			742
Change in cash and cash equivalents	(40		)	158
Cash and cash equivalents, beginning of period	148			37
Cash and cash equivalents, end of period	$	108		$	195

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

T-MOBILE USA

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

(dollars in millions, except for CPGA and CCPU)

(unaudited)

OIBDA can be reconciled to our operating income as follows:

	YTD 2004			Q3 2004			Q2 2004			Q1 2004			YTD 2003			Q3 2003
OIBDA	$	1,997		$	788		$	717		$	492		$	1,269		$	461
Depreciation and amortization	(1,008		)	(295		)	(333		)	(380		)	(1,047		)	(354		)
Operating income	$	989		$	493		$	384		$	112		$	222		$	107

The following schedule reflects the CPGA calculation and provides a reconciliation of cost of acquiring customers used for the CPGA calculation to customer acquisition costs reported on our condensed consolidated statements of operations:

	YTD 2004			Q3 2004			Q2 2004			Q1 2004			YTD 2003			Q3 2003
Customer acquisition costs	$	1,938		$	622		$	643		$	673		$	1,489		$	548
Plus: Subsidy loss Equipment sales	(1,067		)	(388		)	(316		)	(363		)	(706		)	(289		)
Cost of equipment sales	1,594			573			474			547			1,071			428
Total subsidy loss	527			185			158			184			365			139
Less: Subsidy loss unrelated to customer acquisition	(228		)	(100		)	(59		)	(69		)	(143		)	(71		)
Subsidy loss related to customer acquisition	299			85			99			115			222			68
Cost of acquiring customers	$	2,237		$	707		$	742		$	788		$	1,711		$	616
CPGA ($/ new customer added)	$	315		$	301		$	318		$	326		$	322		$	334

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

T-MOBILE USA

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

(dollars in millions, except for CPGA and CCPU)

(unaudited)

The following schedule reflects the CCPU calculation and provides a reconciliation of the cost of serving customers used for the CCPU calculation to total network costs plus general and administrative costs reported on our condensed consolidated statements of operations:

	YTD 2004		Q3 2004		Q2 2004		Q1 2004		YTD 2003		Q3 2003
Network costs	$	1,540	$	556	$	530	$	454	$	1,045	$	372
General and administrative	1,372		496		445		431		1,128		406
Total network and general and administrative costs	2,912		1,052		975		885		2,173		778
Plus: Subsidy loss unrelated to customer acquisition	228		100		59		69		143		71
Total cost of serving customers	$	3,140	$	1,152	$	1,034	$	954	$	2,316	$	849
CCPU ($/ customer per month)	$	24	$	24	$	23	$	23	$	23	$	24

This press release contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking statements within the meaning of the safe-harbor provisions of the U.S. federal securities laws. Because theseforward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Deutsche Telekom’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Deutsche Telekom’s reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We do not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release.

About T-Mobile USA:

Based in Bellevue, WA, T-Mobile USA, Inc. is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom AG (NYSE: DT). Effective December 31, 2003, Powertel, Inc. became a wholly-owned subsidiary of T-Mobile USA, thus the consolidated balance sheets and operating results of T-Mobile USA represent all the consolidated U.S. operations of T-Mobile International. All information contained in this press

T-Mobile USA

12920 SE 38th Street

Bellevue, Washington 98006

Phone 1-800-318-9270

Internet http://www.T-Mobile.com

Press Release

release reflects the combined results of T-Mobile USA and Powertel as if the companies had been combined historically.

T-Mobile USA operates the largest GSM/GPRS 1900 voice and data network in the United States, reaching over 250 million people including roaming and other agreements. In addition, TMobile

USA operates the largest carrier-owned Wi-Fi (802.11b) wireless broadband (WLAN) network in the United States, available in more than 5,000 public access locations including Starbucks coffeehouses, Kinko’s copy shops, Borders Books and Music, Accor hotels, selected airports and American Airlines Admirals Clubs, United Red Carpet Clubs and Delta Air Lines Clubs. T-Mobile USA is committed to providing the best value in wireless service through its GET MORE promise to provide customers with more minutes, more features and more service. T-Mobile USA, Inc. and Powertel, Inc. are no longer required to file periodic reports with the SEC. For more information, visit the company website at http://www.t-mobile.com/.

About T-Mobile International:

T-Mobile International, one of Deutsche Telekom AG’s four strategic divisions, is one of the world’s leading international mobile communications providers. T-Mobile International’s majorityheld mobile companies today serve more than 65 million mobile customers in Europe and the U.S.. For more information about T-Mobile International, please visit http://www.t-mobile.net/.

For further information on Deutsche Telekom, please visit the company website at

http://www.telekom.de/investor-relations.

Press Contacts: Investor Relations Contacts:

Philipp Schindera Investor Relations Bonn

T-Mobile International Deutsche Telekom

+49 228.936.1700 +49 228.181.88880

Hans Ehnert Nils Paellmann/Bernie Scholtyseck

Deutsche Telekom Investor Relations New York

+49 228.181.4949 Deutsche Telekom

+1 212.424.2951

+1 877.DT SHARE (toll-free)