Ad hoc / Announcements

19th April 2005

TELES: Additional Payment to Shareholders

This message is due to the German AnSVG, § 13 (1) and § 15 (1).

As TELES continued to be overcapitalized at the end of the financial year 2004, the Management and Supervisory Board have just decided to propose an additional payment to TELES' shareholders amounting to more than 18 Mio€. This is equivalent to approximately 0.80€ per issued share. The payment is being made in view of an increase in equity in Q1/2005 due to extraordinary income from the sale of the WebHosting business to freenet.de AG. It will be submitted at the annual general meeting on 3rd June 2005.

The Payment is to be made to the full amount from equity. For legal reasons this will be achieved by a) an increase in share capital out of capital reserves and b) a capital reduction - both by appropriate amounts - with a subsequent payment of the reduced, normally tax-free sum to TELES' shareholders.

This payment is expected to be made at the beginning of next year at the latest. An earlier payment to TELES' shareholders of about 23 Mio€ - based on the resolutions made at TELES' general meeting on 13th December 2004 - will be made by mid 2005 (cf. Ad hoc announcement dated 1st November 2004).

Prof. Sigram Schindler, CEO