Year-to-Date Comparison

Fixed Net segment

Note: Detailed data of the Fixed Net segment are shown in the appendix on page 26

Lower revenues from Access, Voice & Broadband primarily as a result of lower voice volumes led to a decline of Fixed Net revenues by 9.3% to EUR 1,397.1 million in the first nine months of 2009. The first nine months of 2008 included cumulative revenues of EUR 29.8 million from eTel Polska as well as eTel Slovensko and Telekom Austria Czech Republic, which were sold in February 2008 and November 2008 respectively.

Reduction of operating expenses by 10.1%, increasing profitability

One-off reimbursement from the government of EUR 10.2 million

A reduction of operating expenses by 10.1% as well as a one-off reimbursement from the government of EUR 10.2 million for investments into telecommunication surveillance equipment partly offset lower revenues and limited the decline of EBITDA by 4.3% or EUR 457.7 million during the first nine months of 2009. The reduction of operating expenses mainly reflects lower interconnection costs, the restructuring program implemented as well as the disposal of subsidiaries in 2008. Lower expenses resulted in an improvement of the EBITDA margin from 31.1% to 32.8%.

Operating income grew by 20.6% to EUR 121.1 million due to a reduction in depreciation and amortization charges.