3U TELECOM AG: Acting Supervisory board reelected in annual meeting

In today´s annual meeting 3U TELECOM´s shareholders have confirmed the supervisory board in its office for another four years, as they had resigned in the course of the annual meeting. As a consequence, the agenda item initiated by shareholder Udo Graul to vote out the current supervisory board became irrelevant.

The 3/4-majority needed for the profit and loss transfer agreement within the group, as recommended by the administration, was not reached. This leads directly to a cash relevant additional burden of a high six-figure sum in 2005. Mr. Graul had announced during the general debate to vote against the administration´s proposal. The request of another shareholder for a special audit of Mr. Grauls management in 2004 was approved.

Contact:

3U TELECOM AG
Ulrich Wiehle
Neue Kasseler Str. 62F
35039 Marburg
Phone: 06421-999 1200
Fax: 06421-999 1111
eMail: ir@3u.net

3U TELECOM AG releases preliminary quarterly figures

Marburg, May 12th, 2005. In the first quarter 2005 the 3U group recorded sales of 26.68 mn EUR. This reflects an increase of 1.96 mn EUR in comparison to the fourth quarter 2004 (24.72 mn EUR). For better comparability first-time and at the end of 2004 fully consolidated sales and earnings figures of Carrier24 were allocated to each quarter of 2004. The increase in sales is mainly a result of recently implemented, extensive sales and marketing activities as well as an improvement in the wholessale business within the fixed-line segment. The EBITDA of the group rose from -1.0 mn EUR in the fourth quarter 2004 to 1.3 mn EUR in the first quarter 2005 (Q1 2004: 0.86 mn EUR). Net loss of the 3U group amounts to 5.14 mn EUR and is mainly due to scheduled depreciation on the modern network infrastructure. With respect to the net loss, the 3U group expects a gradual reduction over the forthcoming quarters. The quarterly loss corresponds to earnings per share of -0.11 EUR. As anticipated, cash and cash equivalents as of March 31, 2005 have decreased slightly from 39.81 mn EUR (December 31, 2004) to 37.66 mn EUR. The fixed-line segment of the 3U group recorded sales of 17.23 mn EUR during the first quarter 2005. This increase of 14.9% compared to the previous quarter (15.0 mn EUR) was supported by a significant operative improvement of the subsidiary fon4U (preselection code 01053). EBITDA of -0.52 mn EUR of the fixed-line segment is slighty above internal estimates and shows a strong improvement in comparison to the previous quarter (Q4 2004: EBITDA -2.64 mn EUR), which was characterized by high restructuring costs and one-time effects. Sales of the subsidiaries LambdaNet and Carrier24 (segment broadband/IP) were at 9.45 mn EUR (Q4 2004: 9.72 mn EUR). An EBITDA of 1.82 mn EUR lead to an increase in the EBITDA margin of 19.3% (Q4 2004: 16.9%) in this segment. All in all, the restructuring efforts introduced by the new management since August 2004 show further prosperities supporting 3U TELECOM AG”s objective to return to profitability.

For the fiscal year 2005 the 3U group continues to expect an increase in sales of at least 10% and a significant increase in EBITDA in comparison to 2004. This guidance does not yet include the expected cost reduction agreed on May 10th 2005 in a term sheet between LambdaNet and its fibre supplier GasLINE. An updated guidance for the full year 2005 will be released with the final closing of this contractual relationsship.

The complete quarterly report, for the first time according to IFRS, will be available as of May 17th 2005.

Contact:

3U TELECOM AG
Ulrich Wiehle
Tel.: + 49 (0)6421-999 1200
Fax: + 49 (0)6421-999 1111
E-Mail: ir@3u.net
ISIN: DE0005167902
WKN: 516790

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