freenet AG

euro adhoc: freenet AG
Financial Figures/Balance Sheet
The new freenet AG: EUR 2.055 billion sales, EUR 117.6 million EBT and EUR 257 million consolidated net income

@@start.t1@@--------------------------------------------------------------------------------   Disclosure announcement transmitted by euro adhoc. The issuer is responsible   for the content of this announcement. --------------------------------------------------------------------------------@@end@@

annual report


The new freenet AG: EUR 2.055 billion sales, EUR 117.6 million EBT and EUR 257 million consolidated net income

@@start.t2@@•          5.1 million mobile users
•          3 million telephony users
•          2 million narrowband users
•          1.5 million paid services users
•          1 million DSL users
freenet AG, Hamburg, 26 April 2006 - Following the completion of the merger
between mobilcom AG and AG on 2 March 2007, freenet AG has prepared
the annual financial statements for 2006 in its capacity as the legal successor.@@end@@

The figures for financial 2006 show that the merger has resulted in a major player on the market with strong financial backing and strong results. The market position of freenet AG has been strengthened although the financial year was characterised by the pending merger of mobilcom and freenet, so that it was not possible for all the originally envisaged advantages of the merger to be realised to the full extent. Competition also became more intense in the course of 2006, and a negative price trend in the Mobile Telephony, Fixed Network and Internet segments continued. Nevertheless, freenet AG reported a strong performance in terms of user figures in all growth segments: The number of mobile users increased in the course of the year from 4.82 million by approx. 300 thousand to 5.10 million by the end of 2006. Of this figure, 2.75 million are contract users, and 2.35 million are prepaid users. The number of DSL users also performed extremely well and - despite extremely strong competition - also increased by approx. 300 thousand new users from 700 thousand to one million users. freenet accordingly met its original target for DSL users for the year 2006. The number of customers in the Paid Services segment was also expanded further at freenet. In the course of the year, there was an increase of approx. 160 thousand to 1.5 million at the end of 2006. freenet also has 2 million narrowband users and 3 million telephony users. freenet AG actively combated the trend towards lower telephony prices by signing up more customers and marketing higher-value tariffs, and with sales of EUR 1.329 billion in the Mobile Telephony segment almost repeated the level of the previous year (EUR 1.350 billion). Despite continuously falling prices for telephony, narrowband and DSL and the reduction in the number of telephone minutes, sales in the Fixed Network/Internet segment increased from EUR 700.8 million in 2005 by EUR 24.7 million to EUR 725.5 million in 2006. Accordingly, full-year sales of EUR 2.055 billion in financial 2006 were slightly higher than the corresponding figure of EUR 2.051 billion for 2005. Gross profit reflects higher growth costs and fell compared with the previous year from EUR 490.6 million to EUR 465.8 million. In addition, higher marketing expenses (+12 percent, from EUR 72.8 million in 2005 to EUR 81.8 million in 2006) resulted in a reduction in the key result ratios. Operating results (EBITDA) in the Mobile Telephony and Fixed Network/Internet segments in 2006 were stated as EUR 62.8 million and EUR 93.2 million respectively. At the Group level, EBITDA of EUR 147.0 million is depressed by EUR 9 million for costs not attributable to the segments. Earnings before taxes (EBT) increased slightly from EUR 116.8 million to EUR 117.6 million in 2006, or declined compared with EBT adjusted by one-off costs of EUR 25.2 million related to the merger. Compared with the previous year, consolidated result increased strongly by approx. 180 percent to EUR 257.0 million. This growth is attributable to the fact that the tax losses carried forward can now be utilised throughout the Group.

The cumulative profit of freenet AG for commercial law purposes amounted to EUR 1.17 billion as of 31 December.2006. This cumulative profit is attributable mainly to the reversal of hidden reserves of EUR 1.069 billion within the framework of the merger. Liquid assets in the Group increased during 2006 from EUR 416.6 million by EUR 117.4 million to EUR 534.0 million. The annual financial statements for 2006 do not yet contain any proposal for appropriation of profits. The freenet Managing Board intends to submit a proposal for the appropriation of profits to the Supervisory Board by the end of May to enable a resolution to be adopted by the shareholders' meeting.

Key financials of the freenet Group (yoy comparison): Accounting method: IAS/IFRS

EUR million                                         2006      2005
Sales, Group                                        2,054.8 2,050.8
Sales, Mobile Telephony                      1,329.3 1,350.0
Sales, Fixed Network/Internet            725.5    700.8
Gross profit, Group                            465.8    490.6
Gross profit, Mobile Telephony          194.4    191.9
Gross profit, Fixed Network/Internet 271.4    298.7
EBITDA, Group                                      147.0    172.7 / 197.9*
EBITDA, Mobile Telephony                    62.8      53.2 / 66.7*
EBITDA, Fixed Network/Internet          93.2      119.4 / 131.2*
EBIT, Group                                         103.1    108.4 / 133.6*
EBIT, Mobile Telephony                        51.4      29.3 / 42.8*
EBIT, Fixed Network/Internet              60.7      79.1 / 90.8*
EBT                                                      117.6    116.8 / 142.0*
Consolidated result                            257.0    91.8
Earnings per share                              3.50      1.06
Liquid assets                                      534.0    416.6

* Adjusted by a total of one-off costs of EUR 25.2 million related to the merger; of this figure, EUR 13.5 million is attributable to the Mobile Telephony segment and EUR 11.7 million is attributable to the Fixed Network/Internet segment

@@start.t3@@end of announcement                                                 euro adhoc 26.04.2007 07:52:54

ots Originaltext: freenet AG
Im Internet recherchierbar:

Further inquiry note:
Andreas Neumann
Tel.: +49 (0)40 51306-778
Patrick Moeller
Tel.: +49 (0)4331 691173

Branche: Online
ISIN:      DE000A0EAMM0
WKN:        A0EAMM
Index:    TecDAX, CDAX, Prime All Share, HDAX, Midcap Market Index,
              Technologie All Share
Börsen:  Frankfurter Wertpapierbörse / regulated dealing/prime
              Börse Berlin-Bremen / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Niedersächsische Börse zu Hannover / free trade
              Bayerische Börse / free trade

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