DGAP-Adhoc: Deutsche Telekom AG: AT&T and Deutsche Telekom terminate the agreement on the sale of T Mobile USA - Deutsche Telekom receives high break-up fee.

Deutsche Telekom AG  / Key word(s): Miscellaneous

19.12.2011 22:42

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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AT&T and Deutsche Telekom terminate the agreement on the sale of T Mobile
USA - Deutsche Telekom receives high break-up fee.

U.S. telecommunications company AT&T Inc. and Deutsche Telekom have
terminated the agreement on the sale of T-Mobile USA to AT&T. As a result,
AT&T will pay Deutsche Telekom the break-up fee agreed in the contract
signed by both companies dated March 20, 2011. This break up fee comprises
of a cash payment of USD 3 billion to Deutsche Telekom, which the company
expects to receive by the end of 2011, as well as a long-term agreement on
3G roaming services and a large package of mobile communications licenses
for T-Mobile USA.

The termination of the transaction means Deutsche Telekom will go back to
reporting T Mobile USA as continuing operations in future.

Deutsche Telekom's guidance for the 2011 financial year remains unchanged
as a result of this development, with an adjusted EBITDA of around EUR 19.1
billion expected. At EUR 6.5 billion, free cash flow is forecasted to
remain at the prior-year level or increase slightly. The guidance includes
the T-Mobile USA contribution based on the average exchange rate in 2010 of
USD 1.33 per euro. The free cash flow forecast does not include the
settlement payment of EUR 0.4 billion relating to PTC in Poland nor the
cash payment of USD 3 billion from the break-up fee.

Deutsche Telekom's shareholder remuneration policy also remains unchanged.
This is subject to the necessary board resolutions and other legal
requirements.

Despite the termination of the agreement with AT&T, Deutsche Telekom
expects to remain within the communicated ranges for certain financial
performance indicators. These are as follows: The ratio of net debt to
adjusted EBITDA of the Group is to be between 2 and 2.5, the equity ratio
is to be between 25 percent and 35 percent, gearing (ratio of net debt to
shareholders' equity) between 0.8 and 1.2, and liquidity reserves is to
cover maturities of at least the next 24 months.

To the extent that this release contains any statements that relate to
expectations, forecasts or to the future, these statements may be
associated with known and unknown risks and uncertainties.  Therefore, the
actual events and circumstances may differ materially from these
statements.  Subject to mandatory provisions of law, the company has no
obligation and undertakes no obligation to publicly update or revise any of
these statements to correctly reflect, subsequently to this release, the
actual events and circumstances.


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Financial/Corporate News and Press Releases.
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Language:     English
Company:      Deutsche Telekom AG
              Friedrich Ebert Allee 140
              53113 Bonn
              Germany
Phone:        +49 (0)228 181-88880
Fax:          +49 (0)228 181-88899
E-mail:       investor.relations@telekom.de
Internet:     www.telekom.com
ISIN:         DE0005557508
WKN:          555750
Indices:      DAX, EURO STOXX 50
Listed:       Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
              Standard), Hamburg, Hannover, München, Stuttgart; Terminbörse
              EUREX; Amsterdam, London, NYSE, Tokyo
 
End of Announcement                             DGAP News-Service
 
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