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Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2011

50 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 por- tion 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. 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. The U.S. Department of Justice (DOJ) initiated legal proceedings against the transaction at the U.S. District Court in Washington, District of Columbia. The successful closing of the sale of T-Mobile USA to AT&T is therefore subject to re- jection of the case by the court or a settlement. The judge assigned to the case has set the start of the hearing for February 13, 2012. Sprint Nextel Corporation und Cellular South, Inc. have also filed complaints against the transaction in the same U.S. District Court. On November 2, 2011, the judge decided to partially allow the complaints to go forward in selected areas, however no trial date has been set. The review by the Federal Communications Commission (FCC) is continuing at the same time. We remain confident that the transaction can be closed in the first half of 2012. 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 pro- vides 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 quarters. It nevertheless remains to be seen how T-Systems’ business will develop in the current economic environment. We will continue on the path we have taken to reduce our costs. Cost-cutting measures are already showing effects and will continue. Earnings are being negatively impacted by increased contract-related expenses, such as for the successful migration of the customer infrastructure to T-Systems’ operational business, start-up expenses for new contracts, and the development of new business areas, such as intelligent networks. Taking into account the measures described, we therefore expect revenue to increase slightly and adjusted EBITDA to remain slightly below the prior-year level in 2011, and revenue to improve marginally and a stable development in adjusted EBITDA in the operat- ing segment in 2012. 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 be impacted in particular by expenditure at Group Head- quarters and staff restructuring activities at Vivento. This will be contrasted by higher earnings contributions from Shared Services. Save for Service program. We have set ourselves ambitious targets that have a positive effect on profitabil- ity: 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.