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Deutsche Telekom AG - Interim Group report - January 1 to March 31, 2011

48 for Service program, should partially offset any negative effects. One cost- cutting measure, for example, will be to reduce the headcount in Romania, Croatia and Slovakia. We also intend to look into the possibility of more network cooperations with competitors in the countries of our Europe operating seg- ment. Following Poland, we now also have an agreement with Telefónica O2 in the Czech Republic for shared use of the 3G network. Based on these general parameters, we expect revenue and adjusted EBITDA in the Europe operating segment – adjusted for the effect from the establish- ment of the Everything Everywhere joint venture in the United Kingdom – to decline year-on-year in 2011. In 2012, we expect the decline in revenue to slow compared with 2011 and adjusted EBITDA to stabilize. United States. On March 20, 2011, Deutsche Telekom AG and AT&T Inc., Dallas, United States (AT&T) entered into an agreement on the sale of T-Mobile USA (United States operating segment) to AT&T. The agreement provides for a purchase price of USD 39 billion, consisting of USD 25 billion in cash and approximately USD  14 billion of the AT&T common stock. AT&T has the right to increase the cash portion of the purchase price by up to USD 4.2 billion and to decrease the number of AT&T shares correspondingly. The final purchase price remains subject to certain contractually agreed conditions. The development of the exchange rate of the U.S. dollar against the euro will also affect the valuation of the transaction in euros. We expect closing in the first half of 2012. As a result of this agreement, Deutsche Telekom recognizes the assets of T-Mobile USA (United States operating segment) and the directly associated liabilities in the consolidated statement of financial position as held for sale. The discontinued operation’s profit/loss after taxes is shown in aggregate form in the consolidated income statement as profit/loss from discontinued opera- tions. Upon closing of the transaction, Deutsche Telekom will deconsolidate the assets and the liabilities directly associated with T-Mobile USA. Any gains or losses arising from the deconsolidation will have to be recognized in profit/ loss. For further explanation of the agreement and the conditions that may lead to adjustment of the purchase price, please refer to the interim consolidated financial statements. Systems Solutions. T-Systems continues to focus on the growing ICT services market where it provides solutions for corporate customers. Demand for international ICT solutions is increasing – not least as a result of the further globalization of corporations. Drawing on a global infrastructure of data centers and networks, T-Systems manages information and communication services for some 400 corporate customers, including multinational corporations and public-sector and public-health institutions. On this basis, our corporate customers arm provides integrated solutions for the networked future of business and society. We laid the foundations for our revenue development over the next few years with the deals concluded in recent months. It nevertheless remains to be seen how the business of T-Systems’ customers will develop after the global financial and economic crisis. We will continue on the path we have taken to reduce our costs. Cost-cutting measures are already showing pleasing effects and will continue. Taking into account the measures described, we expect revenue to increase slightly and adjusted EBITDA to be stable in 2011, and revenue and adjusted EBITDA to increase slightly in 2012 in this operating segment. Group Headquarters & Shared Services. In the 2011 financial year, we expect adjusted EBITDA at Group Headquarters & Shared Services to be at approximately the same level as in the prior year. Adjusted EBITDA will increasingly be impacted in particular by expenditure at Group Headquarters and staff restructuring activities at Vivento. This will be contrasted by positive earnings contributions from Shared Services. Save for Service program. We have set ourselves ambitious targets that have a positive effect on profita­ bility: In the second phase of the Save for Service program, costs are to be cut by a further EUR 4.2 billion by 2012 compared with their 2009 level.