T-Mobile USA Announces Fourth Quarter and Annual Customer Growth for 2

T-Mobile USA Announces Fourth Quarter and Annual Customer Growth for 2004

    Business Editors/Technology Writers

    BELLEVUE, Wash.--(BUSINESS WIRE)--Jan. 26, 2005--T-Mobile USA (NYSE:DT):

--	More than 1 million net new customers in the fourth quarter 2004
--	Nearly 4.2 million net new additions in 2004, compared to 3.2 million in 2003
--	Annual customer growth of 32% in 2004

    T-Mobile USA, Inc. ("T-Mobile USA"), the U.S. operation of T-Mobile International AG & Co. KG ("T-Mobile International"), the mobile communications subsidiary of Deutsche Telekom AG ("Deutsche Telekom") (NYSE:DT), today announced fourth quarter and full year 2004 customer results.
    "Our unwavering focus on the customer, our commitment to delivering a quality customer experience coupled with the best value in wireless, has contributed to our record growth this past year," said Robert Dotson, president and chief executive officer for T-Mobile USA, Inc. "Our exceptional growth of almost 4.2 million customers and highest honors in several independent studies by J.D. Power and Associates are a testament to the quality we've built into every customer touch point in our operation."
    In the fourth quarter of 2004, T-Mobile USA added 1,019,000 net new customers compared to 901,000 in the third quarter of 2004 and 1,015,000 in the fourth quarter of 2003. Net new postpay customer additions amounted to 812,000 in the fourth quarter of 2004. Postpay churn was 2.6% in the fourth quarter of 2004, the same as the third quarter of 2004. Blended churn, a mix of postpay and prepay customers, was 3.1% in the fourth quarter of 2004, up from 3.0% in the third quarter of 2004, and down from 3.2% in the fourth quarter of 2003.
    For the year ended December 31, 2004, T-Mobile USA added 4,186,000 net new customers, an increase from the 3,212,000 net new customers added in 2003. Net postpay customer additions in 2004 amounted to 3,644,000. The prepay customer base increased by 542,000 for the year. Postpay customers comprise 89% of T-Mobile USA's 17.3 million customer base.
    T-Mobile USA will release fourth quarter and full-year 2004 financial results on March 3, 2005.

    SELECTED DATA FOR T-MOBILE USA

(`000) Y/E 04 Q4 04 Q3 04 Q2 04 Q1 04 Y/E 03 Q4 03 ---------------------------------------------------------------------- Covered population 229,000 229,000 226,000 224,000 224,000 224,000 224,000 ---------------------------------------------------------------------- Customers, end of period 17,314 17,314 16,295 15,394 14,302 13,128 13,128 ---------------------------------------------------------------------- thereof postpay customers 15,340 15,340 14,528 13,720 12,784 11,696 11,696 ---------------------------------------------------------------------- thereof prepaid customers 1,974 1,974 1,767 1,674 1,518 1,432 1,432 ---------------------------------------------------------------------- Net customer additions 4,186 1,019 901 1,092 1,174 3,212 1,015 ----------------------------------------------------------------------

---------------------------------------------------------------------- Postpaid churn 2.6% 2.6% 2.6% 2.4% 2.6% 2.5% 2.7% ---------------------------------------------------------------------- Blended churn 3.0% 3.1% 3.0% 2.8% 3.0% 3.1% 3.2% ----------------------------------------------------------------------

    About T-Mobile USA:

    Based in Bellevue, WA, T-Mobile USA, Inc. is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom AG (NYSE:DT). Effective December 31, 2003, Powertel, Inc. became a wholly-owned subsidiary of T-Mobile USA, thus the consolidated balance sheets and operating results of T-Mobile USA represent all the consolidated U.S. operations of T-Mobile International. All information contained in this press release reflects the combined results of T-Mobile USA and Powertel as if the companies had been combined historically.
    T-Mobile USA's GSM/GPRS 1900 voice and data networks in the United States, reach over 253 million people including roaming and other agreements. In addition, T-Mobile USA operates the largest carrier-owned Wi-Fi (802.11b) wireless broadband (WLAN) network in the United States, available in more than 5,300 public access locations including select Starbucks coffeehouses, Borders Books and Music, FedEx Kinko's Office and Print Centers, Hyatt Hotels and Resorts, Red Roof Inns, airports and select American Airlines Admirals Clubs, Delta Air Lines Crown Rooms, United Airlines Red Carpet Clubs and US Airways Clubs. Through its Get More(R) promise, T-Mobile provides customers with more minutes, more features and more service. For more information, visit the company web site at www.t-mobile.com.

    About T-Mobile International:

    T-Mobile International, one of Deutsche Telekom AG's three main growth drivers, is one of the world's leading international mobile communications providers. T-Mobile International's majority-held mobile companies today serve more than 69 million mobile customers in Europe and the U.S.. For more information about T-Mobile International, please visit http://www.t-mobile.net/. For further information on Deutsche Telekom, please visit the company website at http://www.telekom.de/investor-relations.

--30--BRM/se*

CONTACT: T-Mobile International Philipp Schindera, +49 228.936.1700 (Press Contact) or Deutsche Telekom Hans Ehnert, +49 228.181.4949 (Press Contact) or Investor Relations Bonn, +49 228.181.88880 or Investor Relations New York Nils Paellmann or Bernie Scholtyseck, 212-424-2951 toll-free: 877.DT SHARE

KEYWORD: WASHINGTON GERMANY INTERNATIONAL EUROPE INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING SOURCE: T-Mobile International

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