Ad hoc / Announcements

01st February 2005

TELES Results 2004 Characterized by Forerunning Operating Costs and Weak TCS Business; STRATO-Sale Ensures Dividends for 2005 through 2007

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

The TELES board just approved the key figures for 2004. They are characterized by weak TCS business and forerunning operating costs for future growth in broadband internet access services.

The Group IFRS benchmark figures 2004 – including the figures of the sold WebHosting business – at a glance (not yet audited):

Revenues: 79.5 Mio€ (76.2 Mio€ in 2003, 4% increase),
Gross Profit: 46.2 Mio€ (45.9 Mio€, 0.5% increase),
EBITDA: 11.8 Mio€ (17.9 Mio€, 34% decrease),
EBIT: 4.7 Mio€ (12.6 Mio€, 63% decrease),
EBT: 5.1 Mio€ (13.9 Mio€, 63% decrease),
Net Earnings: 2.5 Mio€ (11.2 Mio€, 78% decrease) and
Amount per Share including Income from Capital Reduction: non-diluted 1.22 €/Share, diluted 1.18 €/Share.

The Liquidity of the TELES Group, which was already excellent by the end of the year 2003 (50.4 Mio€), kept at – with unchanged very low Liabilities – outstanding 50.0 Mio€ by 31.12.2004 – in spite of the shares repurchased amounting to 6 Mio€ during the first quarter 2004 (altogether for 20 Mio€ in 2003 and 2004). After the purchase price for the WebHosting business will completely be paid and this business will be deconsolidated the Equity Ratio will increase to more than 80%.

As the incoming cash from the STRATO-Sale will not be needed, TELES currently intends to fully distribute it to its shareholders - spread over 2-3 years (approximately 1 to 2 € per year).

The complete and audited Annual Report 2004 will be published on www.teles.de in March 2005.

Prof. Sigram Schindler, CEO