3U TELECOM AG repositions itself in the fixed-line segment

Focus on profitable sales channels

Marburg, August 9, 2006 – 3U TELECOM AG operates in a market environment which continues to be characterized by price wars and intense predatory competition with declining margins. Unfortunately, this has meant that the company was unable to achieve its target figures in indirect sales in the first half of the year. However, these losses were compensated for by increased sales in the call-by-call sector and by the growth of market share. The Management Board expects tougher competition to make it impossible to market DSL and pre-selection products with sufficient margins for the foreseeable future. The Board has therefore decided to focus on the call-by-call and wholesale sectors in the fixed-line segment. 3U TELECOM AG will continue to concentrate on profitable sales channels, as it has done since the start of the year. Costly indirect sales will not be continued. In connection with this, the number of personnel working in these fields will be reduced by over 40, appr. one third part-time and temporary employees. To strengthen our position as a third-party service partner, the Group-wide technology platform for pre-selection, DSL and VoIP products will be continued and, if necessary, expanded.

Further operational restructuring will streamline our cost structures and contribute to the long-term stability and profitability of the 3U Group. In light of this and the positive sales estimates for the second half of the year in the call-by-call sector, the Management Board is confident that the 3U Group will reach its sales and earnings targets for the entire year (sales of EUR 132 million and EBITDA of EUR 8.5 million).

Despite the difficult market environment, the 3U Group had a successful first six months of 2006. Consolidated sales in the first six months of the current financial year increased by more than 12% to EUR 65.07 million (previous year: EUR 58.01 million). Second-quarter sales came in at EUR 32.92 million (previous year: EUR 31.34 million; Q1/2006: EUR 32.15 million).

Earnings improved considerably. The net loss for the first six months of 2006 was only EUR 1.09 million compared to a net loss of EUR 10.23 million in the same period of last year. This is primarily due to the second quarter with net income of EUR 0.84 million (previous year: net loss of EUR 5.09 million). Extraordinary items played a significant role in this context. The company reached a final agreement with the previous owner of LambdaNet with regard to the mutual offsetting of receivables and payables, which had a one-off positive effect on earnings in the amount of EUR 4.7 million. This was partially offset by an impairment loss of EUR 1.9 million which was recognized on the acquired customer base of LambdaNet due to contract cancellations by a large customer.

EBITDA also showed a marked improvement, more than doubling to EUR 5.14 million in the first six months of 2006 (previous year: EUR 2.46 million). According to the agreed structural adjustments, the Management Board assumes that the company will at least reach the EBITDA target that was announced for the year.

The net loss for the first six months translates to a loss per share of EUR 0.02 (previous year: loss per share of EUR 0.22). The cash and cash equivalents of 3U group as of June 30, 2006 totaled EUR 35.58 million. This is a solid basis for possible acquisitions to strengthen our competitive position. The company’s equity ratio was more than 38%.

The detailed half-year report will be published on August 15, 2006.

Contact:

3U TELECOM AG
Kirsten Götsche
Tel.: +49 (0) 6421 999-1200
Fax: +49 (0) 6421 999-1998
ir@3u.net

3U TELECOM AG: Significant increase in operating results in the first quarter of 2006

Marburg, May 8, 2006. According to preliminary results, the 3U group recorded sales of 32.15 million EUR in the first quarter of the financial year 2006. This is an improvement of 5.47 million EUR or 20.5% compared to the corresponding prior-year period (26.68 million EUR). The 3U group realized a noticeable increase in earnings before interest, taxes, depreciation and amortization (EBITDA). Due to reduced structural and network costs as well as further advanced productivity, the EBITDA of the group increased to 2.78 million EUR (first quarter 2005: 1.30 million EUR). The EBITDA margin of the group thus reached 8.6%. As a result of continuing amortization of 4.10 million EUR the group´s net loss amounts to -1.93 million EUR in the first quarter of 2006 (first quarter 2005: -5.14 million EUR). This corresponds with earnings per share of -0.04 EUR.

In the segment “fixed line telephony” the 3U group attained an increase in sales of 5.81 million EUR to 23.04 million EUR in the first quarter of 2006 (first quarter 2005: 17.23 million EUR). Despite a strong decline in prices to mobile network connections the 3U group expanded its market share in the core business “fixed line telephony” in the beginning of the year. EBITDA of this segment were at 0.38 million EUR, thus confirming the positive trend of the previous quarters (first quarter 2005: -0.52 million EUR).
Sales in the segment “broadband/IP” showed a solid development. In spite of a decline in prices for carrier services, which are usual in the market, sales rose to 9.11 million EUR in the first quarter of 2006 compared to the corresponding prior-year sales figure (8.95 million EUR). With an EBITDA of 2.40 million EUR, an increase of 31.9% compared to the corresponding prior-year period (1.82 million EUR) the EBITDA margin of the “broadband/IP” segment rose to 26.3%.

As of March 31, the group´s equity ratio of 35.9% was nearly constant in comparison to the previous quarter. Cash and cash equivalents were at 36.91 million EUR, and thus approximately at the same level of the preceding year (March 31, 2005: 37.66 million EUR), despite scheduled loan redemption and advance payments to Deutsche Telekom AG for interconnection costs.

The complete quarterly report will be published on May 15, 2006.

Contact:

3U TELECOM AG
Ulrich Wiehle
Tel.: +49 6421 999-1200
Fax: +49 6421 999-1111
ir@3u.net

3U TELECOM AG: Strong growth in sales and earnings

Marburg, February 28, 2006 – According to preliminary figures the 3U group generated sales of 123.38m € in 2005. This corresponds to an increase of 27.9% compared to the previous year (96.46m €). The fixed-line segment accounts for sales of 86.77m € (previous year: 65.44m €), while the segment broadband/IP recorded sales of 36.60m € (previous year: 31.02m €). Considering the first-time consolidation of the 3U subsidiary LambdaNet Communications Deutschland AG in the second quarter 2004 and the deconsolidation of carrier24 as of August 23, 2005, operational sales in this segment grew moderately.

With sales of 34.25m € in the fourth quarter 2005, the 3U group posted the highest quarterly sales figure ever. In the fixed-line segment sales amounted to 25.11m € (Q3/2005: 22.33m €) for the same period. Against the previous trend, sales in the broadband/IP segment rose by 0.35m € in the fourth quarter 2005 compared to the previous quarter and amount to a total of 9.13m € (Q3/2005: 8.78m €).

The EBITDA of the 3U group showed a significant improvement in 2005. With an increase of 83.3% to 6.80m € (2004: 3.71m €) the company exceeded the communicated estimates of 5.8 to 6.0m €. The fixed-line segment posted an EBITDA of -1.90m € (previous year: -2,48m €). However, due to restructuring activities and an improvement in the operational business, the 3U group realised a positive EBITDA of 0.09m € in the fourth quarter 2005. This forms the basis for a sustainable return into profitability in 2006. Positive was also the development of EBITDA in the broadband/IP segment, which increased to 8.70m € in 2005 (previous year: 6.18m €).

The 3U group’s net profit amounts to 0.08m € in 2005 (previous year: -30.32m €). This figure is primarily affected by non-recurring special items including the partial waiver of the supplier GasLINE for a convertible bond, the deconsolidation of carrier24 and the sale of the Dutch subsidiary 3U TELECOM B.V. In total, these special items led to a positive net effect of 12.34m € for the group.

Due to these special items, long-term liabilities of the 3U group decreased significantly. This again led to an increase in the equity ratio to 35.87% as of December 31, 2005 (Dec. 31, 2004: 27.72%).

Cash and cash equivalents of the 3U group comprised 40.18m € at year end 2005 and remained stable compared to the date a year before (39.74m €).

For 2006 the management expects group sales of 132m – 138m €. By further growth of the operational business, the group’s EBITDA is expected to rise to 8.0m – 8.5m € in 2006.

Full year results for 2005 will be published on March 15 together with the annual report.

Contact:

3U TELECOM AG
Ulrich Wiehle
Tel.: +49 6421 999-1200
Fax: +49 6421 999-1111
ir@3u.net

3U TELECOM AG: Positive outlook for the fiscal year 2006

Marburg, January 30, 2006 – In comparison to the previous year 3U TELECOM AG expects a further improvement in operating business in the current fiscal year. The management board expects an increase in sales of at least 10 % compared to 2005. (Sales forecast 2005: 118 – 120 mn EUR). The EBITDA of the 3U group is expected to rise by at least 30% in 2006 in comparison to 5.8 – 6.0 mn EUR expected for 2005. This is mainly due to improved efficiency and cost structures. A positive EBITDA is anticipated in the fixed-line segment in each quarter of 2006. Market share in the call by call business is supposed to be extended by a significant increase in volume to foreign destinations as well as to mobile networks.

As previously stated in the quarterly report, the optimized marketing and sales strategy focusing on the core business will be continued. This includes the start of operating business for recently introduced carrier selection codes as well as the penetration and extension of established and new sales co-operations. The objective is to increase the customer base for voice services and DSL. At the same time, the subsidiary LambdaNet plans to further increase sales with business customers. Thus, LambdaNet´s EBITDA margin is again expected to exceed 20% in the fiscal year 2006.

Because of ongoing amortization for the net infrastructure of the subsidiary LambdaNet until the end of 2007, the management board expects a net loss in the seven-figure range in the fiscal year 2006 (Forecast for 2005: Group net income in the seven-figure range because of special items). However, the operating cash flow will be positive. Despite the first-time redemption of bank loans and the once-only redemption of the convertible bond (in total 6.7 mn EUR) the management board of the 3U group anticipates cash and cash equivalents to be just under 40 mn EUR at the end of 2006.

Contact:

3U TELECOM AG
Ulrich Wiehle
Tel.: 06421 999-1200
Fax: 06421 999-1111
ir@3u.net