Preliminary figures 2004 and outlook 2005

Marburg, March 10th, 2005 – According to preliminary figures the 3U group recorded sales of 96.46mn € in 2004. This compares to 64.68mn € in the previous year – an increase of 49.1%. These figures are mainly a result of the acquisition of LambdaNet Communications AG as well as the first-time consolidation of carrier24 GmbH as of year end, which provides the complete network for our fixed-line business. The consolidation of carrier24 is demanded by US GAAP regulation.

During Q4 2004 the fixed line segment recorded sales of 15.00mn € (Q3 2004: 17.21mn €). Sales of subsidiary LambdaNet (Broadband / IP segment) amounted to 8.91mn € in Q4 2004 (Q3 2004: 9.35mn €). The first-time consolidation of carrier24 contributed 3.17mn € to total sales in 2004.

EBITDA of the 3U group for the full year 2004 amounted to 4.07mn € (previous year: 5.76mn €). While the EBITDA of minus 2.64mn € in Q4 2004 was again negative in the fixed-line segment (Q3 2004: minus 0.49mn €), the subsidiary LambdaNet was able to record an EBITDA of 1.25mn € in Q4 2004 (Q3 2004: 1.83mn €).

The net loss of the 3U group in 2004 was 29.15mn € (net income 2003: 1.73mn €) and was mainly determined – after extraordinary goodwill amortization in Q2 2004 – by non-liquidity related one-time effects in Q4 2004. During this period the group recorded in total a net loss of minus 11.65mn € (following a accumulated net loss of 17.50mn € at the end of Q3 2004). Net loss in Q4 2004 results from the consolidation effects of carrier24 GmbH, contributing minus 4.58mn € for the full year 2004. The subsidiary LambdaNet recorded a net loss of minus 4.42mn € in Q4 2004 due to scheduled depreciation and amortization (Q3 2004: minus 3.46mn €). In addition, the fixed-line segment added a net loss of minus 2.66mn € during Q4 (Q3 2004: minus 1.10mn €, and for full year 2004 minus 13.04mn €).

Net loss and the development of EBITDA in Q4 2004 are mainly a result of restructuring costs for the subsidiaries as well as provisions for legal issues and back duties as a result of a tax audit for the years 1999 through 2002.

As of December 31st, 2004 cash and cash equivalents remained stable with 39.81mn € in comparison to 39.60mn € at the end of Q3 2004.

For the fiscal year 2005 the 3U group expects an increase in sales of at least 10%, while EBITDA is expected to rise even stronger. The expectations are based especially on intensified sales and marketing activities, lower cost structures and a successful reorginization of the group, which should be fully realized in 2005.

The company´s final figures for 2004 will be published on March 15th, 2005 with the release of the annual report.


Ulrich Wiehle
Tel.: + 49 (0)6421-999 1200
Fax: + 49 (0)6421-999 1111