Ad hoc / Announcements

13th October 2005

TELES: Q3 Results - More Dynamic Growth of skyDSL Customer Numbers

This information is released in accordance with § 13 section 1 and § 15 section 1 of the German Investor Protection Improvement Act (AnSVG).

With an EBT of -2.4 Mio€, operating losses at TELES AG in Q3/2005 were in line with growth forecasts. In Q3/2005, the number of skyDSL customers increased more dynamically. Compared to Q2/2005, new skyDSL customers quadrupled.

On the other hand, net earnings amount to 124 Mio€ resulting from extraordinary income from the sale of the WebHosting Segment to freenet.de AG, realized in Q1/2005.

The key data at TELES for Q3/2005 (in accordance with IFRS, unaudited) can be summarized as follows:

Revenues: 6.9 Mio€ (in Q3/2004: 6.2 Mio€, +11 %),
Gross Profit: 2.9 Mio€ (in Q3/2004: 3.9 Mio€, -26%),
EBITDA: -3.0 Mio€ (in Q3/2004: -0.3 Mio€),
EBIT: -3.2 Mio€ (in Q3/2004: -0.5 Mio€),
EBT: -2.4 Mio€ (in Q3/2004: -0,3 Mio€),
YTD EBT incl. Discontinued Operations: 126.3 Mio€.

Attention is drawn to two very important key figures at the end of the period under review:

Cash amounted to 78.4 Mio€ (103.6 Mio€ at the end of Q2/2005) — after payment of 22.9 Mio€ to the TELES' shareholders early July resulting from the reduction of share capital. Furthermore, TELES owns more than 3.1 million freenet shares and almost 2.2 million treasury stock with a current stock exchange value totalling over 80 Mio€.
The equity ratio amounted to 85 %.

Professor Sigram Schindler
CEO of TELES AG