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.


Ulrich Wiehle
Tel.: 06421 999-1200
Fax: 06421 999-1111