T-MOBILE INTERNATIONAL REPORTS THIRD QUARTER 2003 RESULTS OF U.S. OPERATIONS

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1 Bonn, November 13, T-MOBILE INTERNATIONAL REPORTS THIRD QUARTER RESULTS OF U.S. OPERATIONS Operating Income Before Depreciation and Amortization ( OIBDA ) of $461 million in the third quarter OIBDA margin to service revenues of 24% 670,000 net new customers in the third quarter Service Revenue ARPU of $54, up $1 sequentially and $4 year-over-year & Co. KG, the mobile communications subsidiary of Deutsche Telekom AG (NYSE: DT), today announced third quarter results of its U.S. operations, which consist of T-Mobile USA, Inc. and Powertel, Inc. and operate under the T-Mobile brand. All financial figures 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 US wireless carriers. This information will not agree with information regarding the U.S. Operations of T-Mobile reflected in the consolidated results of Deutsche Telekom as that information is provided in Euros and in accordance with German accounting principles. Our U.S. operations delivered almost $1.3 billion of OIBDA in the first nine months of while continuing strong subscriber growth, said Rene Obermann, CEO of T-Mobile International and Member of the Board of Management, Deutsche Telekom. This represents a $1.0 billion increase in OIBDA over the first nine months of It also represents a significant contribution to the improvement in the overall operating performance of T- Mobile International in.

2 The U.S. Operations of T-Mobile reported OIBDA of $461 million in the third quarter ended September 30,. OIBDA margin (OIBDA divided by service revenues) was 24% in the third quarter compared to 28% in the second quarter of and 8% in the third quarter of 2002, which means that T-Mobile tripled its OIBDA margin year-over-year. The decrease in OIBDA margin quarter-over-quarter was largely the result of increased customer retention spending and higher customer growth in the third quarter. OIBDA margin for the nine months ended September 30, was 24%. In the third quarter, the U.S. Operations of T-Mobile added 670,000 net customers compared to 606,000 net customers added in the second quarter of. Net post pay customer additions amounted to 694,000 in the third quarter while the prepaid customer base decreased by 24,000. The total customer base now exceeds 12.1 million. Post pay churn was 2.7% in the third quarter while blended churn was 3.3%. Both churn percentages increased from the second quarter largely as a result of a significantly greater number of customers reaching their contract expiration dates in the quarter than during any past quarter. This is a result of the extraordinary growth in the third quarter of 2002 when the company launched the T-Mobile brand and began offering service in California and Nevada. Robert Dotson, President and Chief Executive Officer of the U.S. Operations of T-Mobile said, Growth continued to be strong in the third quarter with almost 700,000 net new post pay customers, despite an increase in churn. Additionally, our customers are using more of our services as indicated by the continued growth in ARPU. We remain committed to delivering the best value in wireless and will continue to enhance the services we provide our customers. Service revenues, which consist of post pay, prepaid and roaming and other service revenues, exceeded $1.9 billion in the third quarter representing a

3 7% sequential increase from the second quarter of. Total revenues were $2.2 billion in the third quarter. Post pay ARPU (total post pay revenue per average post pay customers during the period) remained steady at $53 in the third quarter. Service revenue ARPU (total service revenue per average total customers during the period) was $54 in the third quarter, an increase of $1 from the second quarter of and $4 from the third quarter of last year. Service revenue ARPU increased due to a higher proportion of post pay customers and due to higher customer usage, both for voice, where monthly minutes of use ( MOUs ) per average post pay customer increased to 778 in the third quarter, and data service, which now represents 2.7% of post pay ARPU. Over 40% of customers are now paying incrementally over their base rate plan for some type of data service. The cost of acquiring a customer, referred to as Cost Per Gross Add ( CPGA ), was $334 in the third quarter of, compared to $332 in the second quarter of. The cost of serving customers or cash cost per user ( CCPU ) was $24 per customer per month in the third quarter compared to $23 in the second quarter. The slight increase in CCPU was due to higher retention expenses. The difference between service revenue ARPU and CCPU remained at $30 in the third quarter, which is a year-over-year increase of $3. Capital expenditures (excluding our share of investment in the network infrastructure venture with Cingular in New York and California) were $407 million in the third quarter and $1,187 million for the first nine months of the year. In addition, our year-to-date share of capital expenditures in the venture with Cingular was $46 million, net of $225 million of additional contribution made by Cingular under the terms of the venture. The footprint for the U.S. Operations of T-Mobile remained at 224 million people at the end of the third quarter. Capital expenditures during the third quarter were

4 incurred primarily to enhance the capacity and quality within the existing footprint. 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. A reconciliation from the non-gaap financial measures to the most directly comparable GAAP financial measures is provided in the notes to the attached financial table. ************************************* Key Get More highlights: Get More Service: Wireless Local Number Portability The U.S. Operations of T-Mobile will be ready to implement Wireless Local Number Portability (WLNP) on November 24, as mandated by the U.S. Federal Communications Commission. Reciprocal service level agreements have been signed with each of the other five national carriers, and with other smaller carriers, that establish consistent rules for implementation of WLNP. T-Mobile s objective is to make it possible for customers of all carriers to conveniently and easily switch or port their number with us. T-Mobile has created a dedicated porting call center, trained thousands of its retail employees, customer care employees and employees of affiliated dealers regarding the WLNP process and the opportunity and challenges it presents. The company has also instituted major updates to its computer systems and other systems to handle the anticipated increase in customer contact related to WLNP. Get More Features: Rich Communications In the third quarter, T-Mobile continued to take a leadership position in rich communications services. The T-Mobile All Access experience featured a first ever, simultaneous web-cast event on of five-concerts, in five cities, on one night, September 4 th, and culminated with an exclusive concert on Alcatraz Island on October 16 th the first ever live web cast from the historic island.

5 Billed as the ultimate Get More experience, T-Mobile used the events to highlight it s rich communications services, integrating text and picture messaging into all the live events and featuring exclusive content via t-mobile.com including artist trivia alerts, downloadable MegaTones and Wallpaper. T-Mobile customers registered to win via a special text messaging option. The promotion generated over two million user interactions. Get More Value: 3-Day Weekends T-Mobile continues to deliver on it s Get More promise by delivering customers with the best overall value in their wireless service. The cornerstone of T-Mobile s holiday offering is a new 3-Day Weekend plan. The ultimate Get More From Life rate gives customers free calling on Friday as well as Saturday and Sunday, with 600 Whenever minutes and no long distance or digital roaming charges for $39.99 a month. Get More Service: T-Mobile HotSpot: T-Mobile continues to build its network, develop strategic relationships, build its subscriber base, and cement its leadership position as the dominant player in public Wi-Fi. In the third quarter, T-Mobile announced it will offer an even greater level of security by deploying the 802.1x security standard across its entire Wi-Fi network. Complementing its existing security enhancements, T-Mobile is currently testing 802.1x and will aggressively rollout the solution across its network by second quarter resulting in the highest degree of Wi-Fi security commercially available in the market today and the largest public hotspot deployment of the 802.1x standard in the world for commercial networks. Additionally, T-Mobile is the only wireless broadband provider in the U.S. to collaborate with Microsoft in fielding its Wireless Provision Services (WPS) product, which allows Windows XP users to easily detect and connect to T-Mobile HotSpot networks with automatic authentication and encryption based on the 802.1x standard. T-Mobile continued to expand it s HotSpot network in the third quarter and currently offers service in over 3,300 locations across the country. T-Mobile completed its initial deployment with Kinko s, launching service in over 170 locations, and is on track to deploy in over 1,100 Kinko s nationwide by April, 2004.

6 Selected Data for the U.S. Operations of T-Mobile International (`000) Q1 03 Q2 03 Q3 03 YTD 03 Covered population 224, , , ,000 Customers 10,837 11,443 12,113 12,113 thereof post pay customers 9,459 10,111 10,805 10,805 thereof prepaid customers 1,378 1,332 1,308 1,308 Net customer additions ,197 MOUs/post pay customer/mo Post pay churn 2.3% 2.3% 2.7% 2.4% Blended churn 3.0% 3.0% 3.3% 3.1% ($ / month / avg customer) Service revenue ARPU Post pay ARPU Cost of Serving (CCPU) ($ / new customer added) Cost Per Gross Add (CPGA) ($ million) Total revenues 1,787 2,000 2,216 6,003 Service revenues 3 1,560 1,772 1,902 5,234 OIBDA ,269 Capital expenditures ,187 Because all companies do not calculate these figures in the same manner, our presentation may not be comparable to other similarly titled measures reported by other companies. 1 The 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 handset subsidy loss unrelated to customer acquisition divided by the average total customers during the period. We believe that CCPU, which is a measure of the total 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. 2 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 handset subsidy loss related to customer acquisition, divided by gross customers added during the quarter. 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. 3 Service revenues include post pay, prepaid, and roaming and other service revenues.

7 4 OIBDA is a non-gaap financial measure, which we define as operating income before depreciation and amortization. We previously used EBITDA, but have changed to OIBDA to be more consistent with industry practice. In a capitalintensive industry such as wireless telecommunications, we consider growth in OIBDA as well as improvements in OIBDA margin to be a meaningful indicator of potential future profitability. OIBDA should not be construed as an alternative to operating income (loss) or net loss 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 also use OIBDA as an integral part of our internal reporting to evaluate the performance of our senior management. We believe that operating income (loss) is the financial measure calculated and presented in accordance with GAAP that is the most directly comparable to OIBDA. 5 Excludes T-Mobile s investment for capital expenditures in the network infrastructure venture with Cingular Wireless LLC ( Cingular ). T-Mobile and Cingular share in the ownership and operation of the network in the New York City metropolitan area, most of California and parts of Nevada. Network capital expenditures in these areas are shared between the parties. T-Mobile s 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. See the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures below.

8 U.S. Operations of T-Mobile International Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (dollars in millions, except for CPGA and CCPU) OIBDA can be reconciled to our operating income (loss) and OIBDA margin can be reconciled to our operating income (loss) margin as follows: Q1 Q2 Q3 YTD Q YTD 2002 OIBDA $307 $501 $461 $1,269 $96 $308 Depreciation and amortization (331) (362) (354) (1,047) (347) (969) Impairment charges (19,908) (19,908) Operating income (loss) ($24) $139 $107 $222 ($20,159) ($20,569) Q1 Q2 Q3 YTD Q YTD 2002 OIBDA margin to service revenue 20% 28% 24% 24% 8% 9% Depreciation and amortization margin to service revenue (21%) (20%) (19%) (20%) (27%) (28%) Impairment charges (1,556%) (574%) Operating income (loss) margin to service revenue (1%) 8% 5% 4% (1,575%) (593%) The following schedule reflects the CPGA calculation and provides a reconciliation of total cost of acquiring customers used for the CPGA calculation to customer acquisition costs reported on our condensed consolidated statements of operations: Q1 Q2 Q3 YTD Customer acquisition costs $479 $462 $548 $1,489 Plus: Subsidy loss Equipment sales (210) (207) (289) (706) Cost of equipment sales ,071 Total subsidy loss Less: Subsidy loss unrelated to customer acquisition (35) (37) (71) (143) Subsidy loss related to customer acquisition Total cost of acquiring customers $564 $531 $616 $1,711 CPGA ($ / new customer added) $303 $332 $334 $322

9 U.S. Operations of T-Mobile International Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (dollars in millions, except for CPGA and CCPU) The following schedule reflects the CCPU calculation and provides a reconciliation of the total 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: Q1 Q2 Q3 YTD Network costs $326 $347 $372 $1,045 General and administrative ,128 Total network and general and administrative costs ,173 Plus: Subsidy loss unrelated to customer acquisition Total cost of serving customers $705 $762 $849 $2,316 CCPU ($ / month) $23 $23 $24 $23 All figures are in U.S. dollars and, except as described above, are in accordance with U.S. GAAP.

10 U.S. OPERATIONS OF T-MOBILE INTERNATIONAL CONDENSED CONSOLIDATED BALANCE SHEET (dollars in thousands) (unaudited) September 30, ASSETS Current assets: Cash and cash equivalents... $ 194,502 Accounts receivable, net of allowance for doubtful accounts of $144, ,153,327 Inventory ,576 Other current assets ,786 1,865,191 Property and equipment, net of accumulated depreciation of $2,260, ,445,947 Goodwill... 10,939,417 Spectrum licenses... 11,048,050 Other intangible assets, net of accumulated amortization of $593, ,431 Investments in and advances to unconsolidated affiliates ,484 Other assets and investments ,441 $ 30,399,961 LIABILITIES AND SHAREHOLDER S EQUITY Current liabilities: Accounts payable... $ 308,130 Accrued liabilities... 1,046,357 Construction accounts payable ,485 Deferred revenue ,871 Current portion of long-term debt ,960 2,056,803 Long-term debt... 16,788 Long-term notes payable to affiliates... 7,590,629 Deferred tax liabilities... 3,614,023 Other long-term liabilities ,988 Total long-term liabilities other than shares... 11,358,428 Voting preferred stock... 5,000,000 Total long-term liabilities... 16,358,428 Minority interest in equity of consolidated subsidiaries Commitments and contingencies Shareholder s equity: Common stock... 35,440,033 Deferred stock compensation (17,319) Accumulated other comprehensive loss (43,355) Accumulated deficit... (23,394,769) Total shareholder s equity ,984,590 $ 30,399,961

11 U.S. OPERATIONS OF T-MOBILE INTERNATIONAL CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, Revenues: Post pay revenues... $ 1,678,239 $ 4,592,277 Prepaid revenues , ,209 Roaming and other service revenues... 90, ,743 Equipment sales , ,235 Affiliate and other revenues... 25,654 64,630 Total revenues... 2,216,081 6,003,094 Operating expenses: Network costs (excludes depreciation expense included below of $221,742 and $661,368, respectively) ,430 1,045,667 Cost of equipment sales ,762 1,070,360 General and administrative ,868 1,127,962 Customer acquisition ,654 1,489,206 Depreciation and amortization ,014 1,047,434 Total operating expenses... 2,108,728 5,780,629 Operating income , ,465 Other income (expense): Interest expense... (95,147) (415,269) Equity in net losses of unconsolidated affiliates... (26,135) (66,108) Interest income and other, net... (745) (43,758) Total other income (expense)... (122,027) (525,135) Net loss before income taxes... (14,674) (302,670) Deferred income tax expense... (23,833) (81,924) Net loss... $ (38,507) $ (384,594)

12 U.S. OPERATIONS OF T-MOBILE INTERNATIONAL CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited) Nine Months Ended September 30, Operating activities: Net loss... $ (384,594) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization... 1,047,434 Deferred income tax expense... 81,924 Amortization of debt discount and premium, net... (8,150) Equity in net losses of unconsolidated affiliates... 66,108 Stock-based compensation... 13,985 Allowance for bad debts... 7,848 Other, net... (2,040) Changes in operating assets and liabilities: Accounts receivable... (153,591) Inventory... 82,581 Other current assets... (3,574) Accounts payable... (45,035) Accrued liabilities ,787 Net cash provided by operating activities ,683 Investing activities: Purchases of property and equipment... (1,186,899) Acquisitions of wireless properties, net of cash acquired (7,560) Investments in and advances to unconsolidated affiliates, net... (245,176) Other, net... (7,269) Net cash used in investing activities... (1,446,904) Financing activities: Long-term debt repayments... (4,430,317) Long-term debt borrowings from affiliates, net... 2,227,151 Equity increase... 3,000,000 Book overdraft... (65,352) Other, net... 10,475 Net cash provided by financing activities ,957 Change in cash and cash equivalents ,736 Cash and cash equivalents, beginning of period... 36,766 Cash and cash equivalents, end of period... $ 194,502

13 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 these forward-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 (the 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 International: T-Mobile International, one of Deutsche Telekom AG's four strategic divisions, is one of the world s leading international mobile communications providers. Deutsche Telekom s majority-held mobile companies today serve more than 62 million mobile customers in Europe and the U.S. T-Mobile International is the first transatlantic mobile communications provider utilizing the digital GSM wireless technology standard. For more information about T-Mobile International, please visit For further information on Deutsche Telekom, including financial reports, publications, and presentations, please visit our investor relations website at About the U.S. Operations of T-Mobile International: Based in Bellevue, WA, the U.S. Operations of T-Mobile are a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom AG (NYSE: DT). T-Mobile operates the largest GSM/GPRS 1900 voice and data network in the country, reaching over 250 million people including roaming and other agreements. In addition, T-Mobile operates the largest carrier-owned Wi-Fi (802.11b) wireless broadband (WLAN) network in the country, available in more than 3,300 public access locations including Starbucks coffeehouses, Borders Books and Music, airports and American Airlines Admirals Clubs, United Red Carpet Clubs and Delta Air Lines Clubs. T-Mobile 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 than any other wireless provider. For purposes of this press release, references to the U.S. Operations of T-Mobile consist of T-Mobile USA, Inc. and Powertel, Inc. T-Mobile USA, Inc. and Powertel, Inc. are no longer required to file documents with the SEC. For more information, visit the company web site at Press Contacts: Investor Relations Contacts: Philipp Schindera Investor Relations Bonn T-Mobile International Deutsche Telekom Hans Ehnert Nils Paellmann/Bernie Scholtyseck Deutsche Telekom Investor Relations New York Deutsche Telekom DT SHARE (toll-free)