Introduction

Deutsche Telekom AG is one of the world's leading telecommunications and

information technology service companies. It offers its customers all kinds of
products and services for connected life and work.

As an international Group, Deutsche Telekom is represented in some 50 countries

worldwide. More than half of its net revenue is generated outside Germany. The
Company employs some 260,000 (in June 2009) people overall.

Deutsche Telekom focuses on major technical and social trends and plays a key role
in shaping them: the increasing digitization of many spheres of life, the
personalization of products and services, growing mobilization and
internationalization. Deutsche Telekom stays abreast of the growing convergence of
technologies with an incr easingly integrated product portfolio, where personal data
such as music, videos and addresses can be accessed through any and all terminal
equipment.

The aim is to become the most highly regarded service company in the industry.
That means product offers and services tailored to the customers' needs, top
network quality – and vastly improved efficiency.
 BRAND
The Group supports personal and social networking using innovative products and
services. Under the "T" umbrella of the Group's company brand, the T-Home brand
signifies "everything for the home", and T-Mobile indicates "everything for
people on the move". The T-Systems brand includes the Group's worldwide
offerings for large companies.

T-Home
The focus at T-Home is on the high-growth broadband market with top customer
care and customer retention in voice and data communications. The fixed network
paves the way for ever increasing bandwidths and interactive services – such as
Entertain, the Company’s IPTV package.

T-Mobile
T-Mobile is Deutsche Telekom’s mobile communications brand with more than 150
million customers in Europe and the United States. Further developments focus on
expanding the mobile Internet and related services.

T-Systems
T-Systems is focused on business involving network-centric ICT solutions – with
offers combining IT and telecommunications services. In collaboration with its Indo-
American partner company Cognizant, T Systems offers multinational companies the
solutions they need from a single source. In addition to these 400 or so multinational
companies, T-Systems is also a reliable partner to customers from the public and
health sectors.

Sustainability
The Group is committed to the principles of sustainability and bases its actions on
economic as well as Night time view of Deutsche Telekom Headquarters in Bonn.
social and ecological criteria. Deutsche Telekom regularly ranks highly in
international sustainability ratings, based on its environmental and social
performance. For example, renewable energies have met the Group's entire power
requirements in Germany since January 2008.
 Corporate values
Addressing the trends within the industry such as rapidly changing behavior of
customers, evolving technologies or an increasing bandwidth demand, Deutsche
Telekom has consistently putting itself to the test and evolving its vision and
aspiration. In this process corporate culture is key and the corporate values act
as cornerstones forming this culture. Therefore the Guiding Principles have been
evolved as well from the former T-Spirit. They are strong tools which guide
companies behavior and represent its values and beliefs. However the values are
not just made for internal use - it is also meant for the outside world. They
emphasize the role Deutsche Telekom is playing as a responsible corporate citizen.

The five Guiding Principles of Deutsche Telekom

• Customer delight drives our action. This principle focuses on the most important
thing for the business: not only satisfying customers, but delighting them. The
customers’ thoughts, feelings, needs and experience must drive Deutsche Telekom.

• Respect and integrity guide our behavior. The second principle goes beyond
respecting one another as colleagues in every day business. It is also about truly
respecting customers, partners, suppliers and shareholders.

• Team together, team apart. The third principle focuses on Deutsche Telekom’s
culture of working together. Teams should openly discuss issues and exchange
opinions. But once a decision has been made, the decision is upheld by the entire
team. At separate workplaces all over the world, the decision is implemented and
executed as one team.

• Best place to perform and grow. The fourth principle recognizes the importance
of employees for the company and company culture. To become the most highly
regarded service company in the telecommunications industry and beyond,
Deutsche Telekom relies on the commitment and success of everyone. This principle
combines the commitment from both management and employees to make
Deutsche Telekom the best place to perform and grow.

• I am T, count on me. The final principle involves personal commitment to

Deutsche Telekom from every employee. It means that when a customer has a
problem each employee is personally committed to solving it. Colleagues can count
on one another as well as shareholders and customers counting on the company.

The Guiding Principles are the basis of how the company works together for his
customers, shareholders and the public. The top management at Deutsche Telekom
is committed to living the values at all times and to embedding them in the Group.
The goal is for all employees, to truly live the vision and values.
Building up on that, the Code of Conduct is company code of behavior and
makes the Guiding Principles more tangible. It defines the rules for company daily
business both internally and externally. It creates the bridge between the Guiding
Principles and the many different guidelines and legal regulations within the Group. It
also complies with the listing standards of the New York Stock Exchange. As the
values of Deutsche Telekom have further evolved into the described Guiding
Principles over the last months it is planned to update the Code of Conduct by the
end of 2009. The roll-out should start in Q1 2010. In this transition period, both the
Guiding Principles and the Code of Conduct, which is still based on the former
values (T Spirit), are valid.

Deutsche Telekom facts and figures

Headquarters:

Deutsche Telekom AG
Friedrich-Ebert-Allee 140
53113 Bonn, Germany
Bonn District Court HRB 6794

Chairman of the Board of Management, CEO: René Obermann

Board of Management:
Hamid Akhavan, Board member for T-Mobile, Innovation and Product Development
Manfred Balz, Board Member for Data Privacy, Legal Affairs and Compliance
Reinhard Clemens, Board member for Business Customers
Niek Jan van Damme, Board member for T-Home, Sales & Service
Guido Kerkhoff, Board member for Southern and Eastern Europe
Timotheus Höttges, Board member for Finance (CFO)
Thomas Sattelberger, Chief Human Resources Officer and Labor Director

Supervisory Board:
20 members in total (with 10 employee representatives and
10 shareholder representatives)

Chairman of the Supervisory Board: Prof. Dr. Ulrich Lehner

T-Share:
Number of shares: 4,361,319,993 (December 2008)
ISIN: DE0005557508
Securities-ID (WKN): 555750

Stock markets:
Germany (all stock exchanges)
New York (NYSE) and Tokyo (TSE)

Shareholder structure:
68.3 percent free float, 14.8 percent owned by the Federal Republic of Germany,
16.9 percent owned by the KfW banking group (December 30, 2008)

Revenue: 61.7 billion Euros (2008 financial year)

Employees: Approx. 235,000 employees worldwide (December 31, 2008)

Internationalization: Deutsche Telekom is represented in about 50 countries

worldwide.

Internationalization
Deutsche Telekom is represented in about 50 countries worldwide. As one of
Europe's largest telecommunications providers, the company is present in the most
important markets in Europe, Asia and America

Places of operations, subsidiaries & affiliates

Deutsche Telekom Headquarters: Bonn

Selected international subsidiaries and affiliates: Europe

Stake held by
Country Subsidiaries and affiliates Deutsche Telekom
(directly/ indirectly)
AMC (Albanian Mobile 95.00% of shares held
Albania
Communications Sh.a) by Cosmote
Software Daten Service Gesellschaft
Austria 100.00%
m.b.H.
T-Mobile Austria GmbH 100.00%
Deutsche Telekom
100.00%
Value Added Services Austria GmbH
T-Systems Austria GesmbH 100.00%
Belgium T-Systems Belgium NV 100.00%
100.00% of shares held
Bulgaria Globul (Cosmo Bulgaria Mobile EAD)
by Cosmote
100.00% of shares held
Orbitel E.A.D.
by Magyar Telekom
100.00% of shares held
Novatel EOOD
by Magyar Telekom
T-Hrvatski Telekom
Croatia 51.00%
(HT-Hrvatske Telekominikacije d.d.)
T-Mobile Croatia (T-Mobile Hrvatska 100.00% of shares held
d.o.o.) by T-Hrvatski Telekom
Czech Republic T-Mobile Czech Republic, a.s. 60.77%
T-Systems Czech Republic, a.s. 100.00%
Denmark T-Systems Nordic TC Services A/S 100.00%
Former Yugoslav
51.00% of shares held
Republic of Makedonski Telekom AD
by Magyar Telekom
Macedonia
100.00% of shares held
T-Mobile Macedonia
by Makedonski Telekom
France T-Systems France SAS 100.00%
OTE (Hellenic Telecommunications
Greece 30.00% plus one share
Organization S.A.)
Cosmote (Cosmote Mobile 100.00% of shares held
Telecommunications S.A.) by OTE
Hungary Magyar Telekom NyRt. 59.21%
IQSYS Zrt. (IQSYS Computing Limited 100.00% of shares held
 Stake held by
Country Subsidiaries and affiliates Deutsche Telekom
(directly/ indirectly)
by Shares) by Magyar Telekom
Italy T-Systems Italia S.p.A. 100.00%
Luxembourg T-Systems Luxembourg S.A. 100.00%
Telekom Montenegro 76.53% of shares held
Montenegro
(Crnogorski Telekom a.d.) by Magyar Telekom
T-Mobile Montenegro 100.00% of shares held
(T-Mobile Crna Gora d.o.o.) by Telekom Montenegro
Netherlands T-Mobile Netherlands B.V. 100.00%
T-Systems Nederland B.V. 100.00%
PTC Polska Telefonia Cyfrowa Sp.z
Poland 97.00%
o.o.
T-Systems Polska Sp.z o.o. 100.00%
100.00% of shares held
Romania Combridge S.R.L.
by Magyar Telekom
Cosmote Romania (S.C. Cosmote
86.20% of shares held
Romanian Mobile Telecommunications
by OTE
S.A.)
54.00% of shares held
Romtelecom S.A.
by OTE
Russia T-Systems CIS 100.00%
20.00% of shares held
Serbia Telecom Srbija
by OTE
Slovakia Slovak Telekom, a.s. 51.00%
100.00% of shares held
T-Mobile Slovensko, a.s.
by Slovak Telekom
T-Systems Slovakia s.r.o. 100.00%
Spain T-Systems ITC Iberia, S.A. 100.00%
Switzerland T-Systems Schweiz AG 100.00%
T SYSTEMS TELEKOMÜNIKASYON
Turkey 100.00%
LIMITED SIRKETI
99.90% of shares held
Ukraine Novatel Ukraine LLC.
by Magyar Telekom
United Kingdom T-Mobile UK Limited 100.00%
T-Systems Limited 100.00%

Selected international subsidiaries and affiliates: North America

Stake held by Deutsche Telekom (directly/

Country Subsidiaries and affiliates
indirectly)
Canada T-Systems Canada, Inc. 100.00%
T-Systems Mexico S.A. de
Mexico 100.00%
C.V.
 Stake held by Deutsche Telekom (directly/
Country Subsidiaries and affiliates
indirectly)
T-Systems North America,
USA 100.00%
Inc.
T-Mobile USA, Inc. 100.00%

Selected international subsidiaries and affiliates: South America

Subsidiaries and Stake held by Deutsche Telekom (directly/

Country
affiliates indirectly)
T-Systems Argentina
Argentina 100.00%
S.A.
T-Systems do Brasil
Brazil 100.00%
Ltda.

Selected international subsidiaries and affiliates: Asia

Subsidiaries and Stake held by Deutsche Telekom

Country
affiliates (directly/ indirectly)
T-Systems China
Hong Kong 100.00%
Limited
Japan T-Systems Japan K.K. 100.00%
People’s Republic of T-Systems P.R. China
100.00%
China Ltd.
T-Systems Singapore
Singapore 100.00%
Pte. Ltd.

Selected international subsidiaries and affiliates: Africa

Stake held by Deutsche Telekom

Country Subsidiaries and affiliates
(directly/ indirectly)
South T-Systems South Africa (Pty)
70.00%
Africa Limited
 Strategy “Focus, fix and grow”
Deutsche Telekom is systematically gearing its business to broadband
services and mobile Internet. As well as cementing its market position in
Germany, growth in foreign mobile communications markets also plays a
decisive role.
Deutsche Telekom’s long-term goal is to become a market leader for connected life
and work and its focus is on major industry trends: the digitization of many spheres
of life, the fragmentation of the life and work environment, the personalization of
products and services, growing mobility and increasing globalization. Deutsche
Telekom actively takes up these trends, invests strategically in the infrastructure
for the next generation and develops and markets innovative products and services.
The “Focus, fix and grow” strategy has four key aspects.

Improve competitiveness in Germany

Improving competitiveness, especially in the home market, is a central component of

the strategy adopted in 2006. The central focus is on the targeted expansion of the
broadband infrastructure, the introduction of innovative products and an improved
service. In this way, market leadership has already been reclaimed on the German
DSL market, while expansion of the fast broadband network continues. In the fixed
network, the Group is providing a growing number of towns and cities with ADSL2+
and the even faster VDSL. Furthermore, Deutsche Telekom is focusing on the
constant acceleration of its mobile communications networks.
The improvement in competitiveness also helps towards the Save for Service cost-
cutting program launched in 2006, which saves up to EUR 4.7 billion a year. On the
subject of service, the Telekom Shops received top marks from the German
Technical Control Board (TÜV) for overall customer satisfaction with the service
provided, while the Stiftung Warentest consumer testing organization rated T Home
the best provider of DSL lines and related customer service in the 11/2008 issue of
its magazine. The Company's aim in consolidating its business in Germany is to
increase customer proximity and, at the same time, harness more synergies. The
first step will be taken on July 1 with the merging of T Mobile International into
Deutsche Telekom AG.

Grow abroad with mobile communications

International mobile communications business is a key growth driver for Deutsche

Telekom. The majority of mobile communications revenues are generated outside of
Germany, where the company has almost 90 million mobile customers. T Mobile
USA alone had almost 33 million customers at the end of 2008. In South-Eastern
Europe, Deutsche Telekom’s stake in the Greek company OTE created a strong
position not only in Greece, but also in other fast-growing South-Eastern European
markets. Deutsche Telekom responded to the significance of this market by setting
up a separate Board of Management Department for South-Eastern Europe in March
2009.
Mobilize the Internet

The trend towards mobile data usage is picking up ever more speed. Deutsche
Telekom is shaping this trend, helped by a mix of high-performance infrastructure,
attractive prices, and innovative handsets such as the iPhone 3G and 3GS or the
Android-based T-Mobile G1. For example, T-Mobile exclusively launched the iPhone
3G in Germany, Austria, the Netherlands and other markets in Eastern and South-
Eastern Europe. The sale of laptops and net books in conjunction with mobile
broadband Internet contracts contributed to the positive development of revenues
from mobile data communications. And the number of web’n’walk customers in the
five Western European companies alone rose by 65 percent in 2008 to 5.3 million.

Roll-out network-centric ICT

In the corporate customers segment, the trend toward convergence of IT,

telecommunications services and applications to create an ICT environment
continues apace. T-Systems, Deutsche Telekom’s corporate customers arm, which
concentrates on ICT solutions business with some 400 national and international
systems customers, is strategically focused on network-centric services in the
information and communication technology sector. Major international outsourcing
agreements with Siemens, the South African insurance company Old Mutual Group,
Alcatel Lucent, and Royal Dutch Shell, among others, demonstrate the success of
the strategy. The strategic partnership with the Indo-American company Cognizant in
the systems integration segment underlines T Systems’ position as a global provider.
 The Human Success Factor
Skilled and committed employees who act according to entrepreneurial
standards are important factor for success for the Deutsche Telekom Group.

Respecting the various cultures and using their distinctive national practices
for success is just as important to Deutsche Telekom as developing a shared
identity.

HR strategy
The global realignment of the telecommunications industry, the rapid pace of
technological development and the tough competition in the fixed network and
broadband markets posed acute challenges for Deutsche Telekom in the
areas of workforce reduction, restructuring and expansion. The Group had to
adjust its staff structure in various markets to account for changes in business
volumes and customer numbers. The company not only consistently improved
the age structure of its workforce, but also raised the number of junior staff in
Germany in particular to retain and increase its market shares.

Deutsche Telekom operates in dynamic markets and competitive

environments where structural conditions vary widely from one country to
another. Thanks to efficient personnel work, built on a mission with four
strategic cornerstones, Human Resources (HR) supports the Group strategy.
This includes maintaining a competitive workforce as a valuable contribution
to achieving commercial Group targets (Add Value), tailor-made HR
development with an extended talent agenda (Best People), a sustainable
enhancement of the service culture and professional change management
(Enable Transformation), and the transformation of the HR organization into a
far more efficient, business-oriented structure that comprises the three roles of
Business Partner, Competence Center and Shared Service Center (HR
Excellence). The HR strategy is implemented via a Group-wide program of
eleven top strategic HR projects.

Civic Responsibility

At Deutsche Telekom the principle is "Reuse over recycling." Disposal is

the final option at Deutsche Telekom. This substantially improves the
eco balance of company’s products.

Avoiding waste is a priority at Deutsche Telekom. A good example is the

reuse of cell phones. Around two-thirds of the cell phones that T-Mobile takes
back can be used again following minor repairs. The rest undergo
environmentally sound recycling. Just like other waste that is produced at
Deutsche Telekom. For several years now the recycling rate in Germany has
consistently been nearly 100 percent.

In Germany alone there are around 60 million old cell phones that are not
being used. So that these don’t end up in the trash, all T-Mobile national
companies take back cell phones, batteries and chargers at no cost. T-Mobile
Czech Republic collected more than 20,000 used cell phones during a three-
month campaign in early 2008. As a thank-you, customers were given credit
vouchers or gift coupons. In Germany, T-Mobile donates proceeds from every
cell phone it takes back to the environment organization Deutsche
Umwelthilfe. There is a double benefit for the environment. The old cell
phones are disposed of properly and environmental protection projects are
supported across the world.