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T-Mobile expands outsourcing contract with T-Systems significantly

Harmonizing and consolidating the IT landscape

Frankfurt am Main, August 31, 2006. – T-Mobile is extending and expanding its existing outsourcing contracts with T-Systems. In doing so, the mobile communications company intends to significantly cut its IT costs and concentrate on core competencies. As part of its expanded role, T-Systems will assume responsibility for IT operations while also harmonizing IT and service environments of T-Mobile’s five European companies as well as provide other services. The new expanded scope of the contract increases value of the services by roughly one billion euros over the entire 7.5 year term.

“We’re exploiting all possibilities to reduce operating costs in the company, increase our service quality, and thereby further improve our competitiveness,” stated René Obermann, CEO of T-Mobile International and member of the Board of Management at Deutsche Telekom, on the occasion of signing the contract with T-Systems during the IFA consumer electronics show in Berlin. “We will achieve this by means of consolidated information and communications technology and through a service provider who offers our national companies a high standard of service.”

Peter Thomas Sany, CIO, Deutsche Telekom Group, added: “This contract is the first milestone in the implementation of our IT strategy. It sharpens the profile of T-Systems as best-in-class provider and significantly reduces production costs.”

Full service from the computing center to business applications
The new overall agreement arranges for T-Mobile’s European companies in Germany, Austria, the Czech Republic, Great Britain, and the Netherlands to use the same level of IT outsourcing provided by T-Systems. T-Systems will provide high-performance network infrastructures and operate computing centers, hardware parks, and databases, including business applications. Furthermore, the ICT service provider will manage all PC workstations and associated IT service processes.

T-Systems’ mission will be to consolidate and modernize T-Mobile’s IT and service environments. T-Mobile will maintain responsibility for all IT applications since they directly affect business processes, products, and their development. This arrangement will safeguard T-Mobile’s future competitiveness on the market, while simultaneously using economies of scale in day to day operations.

Lothar Pauly, CEO of T-Systems and member of the Board of Management at Deutsche Telekom stated, “Internationally active customers increasingly want to have identical performance at several locations. As in the current case with T-Mobile, they value the full savings potential that can be achieved by means of uniform standards at all locations.”

Billing management for nine million customers
In addition to traditional IT services, T-Mobile in Austria and the Czech Republic are outsourcing the billing management for nine million customers to T-Systems. According to the new contract, T-Mobile is transferring the complete billing process to a service provider in order to automate processes and take advantage of economies of scale. T-Systems will handle this process from the bill-printing stage to envelope stuffing all the way to postage-optimized mailing of the bills. T-Systems is already providing this service for T-Mobile in Germany and the Netherlands.

About T-Mobile
T-Mobile is one of the world’s leading companies in mobile communications. As one of Deutsche Telekom’s three strategic business units, T-Mobile concentrates on the most dynamic markets in Europe and the USA. By HY 2006, more than 90 million mobile customers were served by companies of the Deutsche Telekom group. And all that over a common technology platform based on GSM, the world’s most successful digital wireless standard. This also makes T-Mobile the only mobile communications provider with a seamless transatlantic service.

T-Mobile also is partner of FreeMove, an alliance formed by four of Europe’s leading mobile companies - Orange, TIM (Telecom Italia Mobile) T-Mobile and TeliaSonera – to help their customers communicate as easily while travelling abroad as they do at home.

For more information about T-Mobile International, please visit www.t-mobile.net

About T-Systems
T-Systems is one of Europe's leading providers of information and communications technology (ICT). Within the Deutsche Telekom Group, T-Systems serves business customers. The company has 52,000 employees in over 20 countries worldwide, and posted revenues of approximately €12.9 billion in 2005.

On April 1, 2006, T-Systems took over the shares in gedas AG from Volkswagen AG. gedas generated turnover of around €606 million in 2005 and serves customers in the automotive, transport, logistics and public sectors.

T-Systems provides ICT solutions for multinational corporations on a global scale. To grow internationally, the company is intensifying its activities in specific western European markets and strengthening its presence in important key automotive markets, such as Latin America and Asia.

T-Systems optimizes processes and cuts costs for its customers, giving them greater flexibility for their core business. Services span the entire ICT value chain – from infrastructure and solutions to business-process outsourcing.

For more information about the company and its services, see www.t-systems.com and www.gedas.com.

Media Contact:

T-Systems
Media Relations
Phone: +49 (0) 69 665 31-126
Fax: +49 (0) 69 665 31-139
E-mail: presse@t-systems.com

Verstreken tijd: 20 jaar en 123 dagen
T-Systems Nede.. contact  


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