T-Mobile USA Hits 20 Million Customer Milestone in the Third Quarter
2005, While Achieving Record OIBDA Margin

BELLEVUE, Wash.--(BUSINESS WIRE)--Nov. 9, 2005--T-Mobile USA (NYSE:DT):


-- 1.06 million net new customers added in Q3 2005, breaking 20
million total customer milestone

-- $1.17 billion in Operating Income Before Depreciation and
Amortization (OIBDA) in Q3 2005, up 48% from Q3 2004

-- OIBDA margin of 34% achieved in the quarter

-- Q3 2005 net income of $458 million, up more than 80% from Q3 2004

-- T-Mobile awarded highest honors for the second consecutive year in
both the J.D. Power and Associates 2005 Wireless Regional Customer
Satisfaction Index Study and the 2005 Wireless Retail Satisfaction
Performance Study

In the third quarter of 2005, T-Mobile USA added 1.06 million net new
customers, up from 972,000 customers added in the second quarter of
2005 and 901,000 added in the third quarter of 2004. Approximately 68%
of the growth in the third quarter of 2005 came from new postpay
customers, which currently comprise over 86% of T-Mobile USA's total
customer base. Approximately 32% of the growth came from new prepaid
customers, a similar proportion as in the second quarter of 2005,
continuing to reflect the success of T-Mobile USA's attractive prepaid
offering.

T-Mobile's commitment to providing world-class customer service
continued to be recognized in independent studies in the third
quarter. During the third quarter T-Mobile earned highest honors for
the second consecutive year in both the J.D. Power and Associates 2005
Wireless Regional Customer Satisfaction Index Study and the 2005
Wireless Retail Satisfaction Performance Study.

"Our employees and Deutsche Telekom's shareholders have much to be
pleased about," said T-Mobile USA President and CEO Robert Dotson. "In
the third quarter, we hit the key 20 million customer milestone,
adding more than one million new net customers. We achieved this
strong customer growth while also delivering a solid OIBDA margin of
34%, a result that reflects our disciplined approach to managing
costs. For the second year in a row we captured top Overall Customer
Satisfaction awards from J.D. Power and Associates. Bottom line -- our
Get More Minutes, Features and Service initiatives continue to
resonate with our customers."

Rene Obermann, CEO of T-Mobile International and member of the board
of management of Deutsche Telekom (NYSE:DT), stated, "T-Mobile USA
once again delivered outstanding results and continues to be a top
driver of growth across our entire business. Their continued strong
operating performance has made the US operations an integral part to
Deutsche Telekom's overall success."

T-Mobile USA reported OIBDA of $1.17 billion in the third quarter of
2005 compared to $1.08 billion in the second quarter of 2005 and $788
million in the third quarter of 2004. T-Mobile USA's net income for
the third quarter of 2005 was $458 million, up from $387 million in
the second quarter of 2005 and $254 million in the third quarter of
2004.

T-Mobile USA service revenues, which consist of postpay, prepaid,
roaming and other service revenues, were $3.15 billion in the third
quarter of 2005, up from $3.04 billion in the second quarter of 2005
and $2.61 billion in the third quarter of 2004. Affiliate and other
revenues were $235 million in the third quarter of 2005, down from
$269 million in the second quarter of 2005 and up from $35 million in
the third quarter of 2004. These revenues include Wi-Fi revenues,
co-location rental income, and revenues from the usage of our network
in California, Nevada, and New York by Cingular's customers who have
not yet transitioned to Cingular's own network. Total revenues,
including service, equipment, and other revenues were $3.80 billion in
the third quarter of 2005.

Average Revenue Per User ("ARPU," as defined in the footnotes to the
Selected Data, below) was $53 in the third quarter of 2005, down
slightly from $54 in the second quarter of 2005 and $55 in the third
quarter of 2004. Data services revenue continued to grow in the third
quarter, and now represents 8.8% of postpay ARPU, compared to 8.2% in
the second quarter of 2005 and 5.6% in the third quarter of 2004. Key
to data services revenue growth was a net increase of 68,000
BlackBerry customers in the quarter, bringing the total number of
BlackBerry users to 662,000. The launch of our EDGE network in the
third quarter of 2005 and continued Wi-Fi hot-spot expansion
underlines our ongoing commitment to provide customer focused data
services.

Postpay churn averaged 2.4% per month in the third quarter of 2005,
down from 2.6% in the third quarter of 2004, and up slightly from the
2.3% in the second quarter of 2005. Blended churn, including both
postpay and prepaid customers, was 2.9% in the third quarter of 2005,
compared to 2.8% achieved in the second quarter of 2005 and slightly
below 3.0% in the third quarter of 2004. While churn decreased year on
year in the third quarter, it increased slightly from the second
quarter of 2005 due to the seasonal impact of more customers reaching
their one-year service anniversaries in the third quarter of the year.

The average cost of acquiring a customer, Cost Per Gross Add ("CPGA,"
as defined in the footnotes to the Selected Data, below) was $271 in
the third quarter of 2005, down from $310 in the second quarter of
2005 and $301 in the third quarter of 2004. The quarter on quarter
improvement is due to a reduction in handset subsidies, while at the
same time achieving solid customer growth.

The average cash cost of serving customers, Cash Cost Per User
("CCPU," as defined in the footnotes to the Selected Data, below), was
$24.65 per customer per month in the third quarter of 2005, down from
$25.66 in the second quarter of 2005 and up slightly from $24.23 in
the third quarter of 2004. The increase in CCPU relative to 2004
reflects the inclusion in our results of all the costs to operate the
networks in California, Nevada and New York associated with the
acquisition of full ownership of those networks at the beginning of
2005, including the costs of providing transitional network services
to Cingular's customers. The year on year increase in CCPU also
reflects the change in our accounting for operating leases in the
fourth quarter of 2004 -- see further discussion in the footnotes to
the Selected Data, below.

Capital expenditures were $585 million in the third quarter of 2005,
compared with $815 million in the second quarter of 2005 and $453
million in the third quarter of 2004. Capital expenditures in the
third quarter of 2004 did not include $124 million related to the
network joint venture with Cingular, which was terminated in the first
quarter of 2005. T-Mobile USA added almost 1,000 new cell sites in the
third quarter of 2005, bringing the total number of cell sites to
nearly 32,000. During the first nine months of 2005 we added more than
2,400 new cell sites, reflecting our continued commitment to improving
network coverage and quality.

This press release includes non-GAAP financial measures. The non-GAAP
financial measures should be considered in addition to, but not as a
substitute for, the information provided in accordance with GAAP.
Reconciliations from the non-GAAP financial measures to the most
directly comparable GAAP financial measures are provided below
following Selected Data and the financial statements.

T-Mobile USA, Inc. ("T-Mobile USA") is the U.S. operation of T-Mobile
International AG & Co. KG ("T-Mobile International"), the mobile
communications subsidiary of Deutsche Telekom AG ("Deutsche Telekom")
(NYSE:DT). In order to provide comparability with the results of other
U.S. wireless carriers all financial amounts are in USD and are based
on accounting principles generally accepted in the United States
("GAAP"). T-Mobile USA results are included in the consolidated
results of Deutsche Telekom, but differ from the information contained
herein as Deutsche Telekom reports financial results in accordance
with International Financial Reporting Standards (IFRS).

SELECTED DATA FOR T-MOBILE USA

(`000) YTD 05 Q3 05 Q2 05 Q1 05 YTD 04 Q3 04
----------------------------------------------------------------------
Covered population 232,000 232,000 232,000 229,000 226,000 226,000
----------------------------------------------------------------------
Customers, end of
period 20,302 20,302 19,243 18,271 16,295 16,295
----------------------------------------------------------------------
thereof postpay
customers 17,512 17,512 16,796 16,115 14,528 14,528
----------------------------------------------------------------------
thereof prepaid
customers 2,790 2,790 2,447 2,156 1,767 1,767
----------------------------------------------------------------------
Net customer additions 2,988 1,059 972 957 3,167 901
----------------------------------------------------------------------

----------------------------------------------------------------------
Minutes of use/post
pay customer/month 956 985 960 921 867 908
----------------------------------------------------------------------
Postpay churn 2.3% 2.4% 2.3% 2.3% 2.5% 2.6%
----------------------------------------------------------------------
Prepaid churn 6.5% 6.6% 6.4% 6.4% 6.4% 6.6%
----------------------------------------------------------------------
Blended churn 2.8% 2.9% 2.8% 2.8% 3.0% 3.0%
----------------------------------------------------------------------

($ / month)
----------------------------------------------------------------------
ARPU (blended)(1) 54 53 54 54 55 55
----------------------------------------------------------------------
ARPU (postpay) 55 55 55 54 55 56
----------------------------------------------------------------------
ARPU (prepaid) 26 24 27 28 29 28
----------------------------------------------------------------------
Cost of serving
(CCPU)(3) 26 25 26 26 24 24
----------------------------------------------------------------------
Cost per gross add
(CPGA)(4) 310 271 310 357 315 301
----------------------------------------------------------------------

($ million)
----------------------------------------------------------------------
Total revenues 10,853 3,802 3,614 3,437 8,441 3,035
----------------------------------------------------------------------
Service revenues(1) 9,047 3,153 3,040 2,854 7,284 2,612
----------------------------------------------------------------------
OIBDA(2,5) 3,073 1,166 1,081 826 1,997 788
----------------------------------------------------------------------
OIBDA margin(8) 31% 34% 33% 27% 27% 30%
----------------------------------------------------------------------
Capital expenditures
(6) 4,238 585 815 2,838 1,716 453
----------------------------------------------------------------------

----------------------------------------------------------------------
Cell sites on-air (7) 31,840 31,840 30,876 29,869 29,056 29,056
----------------------------------------------------------------------


Since all companies do not calculate these figures in the same manner,
the information contained in this press release may not be comparable
to similarly titled measures reported by other companies.


(1) Average Revenue Per User ("ARPU") represents the average monthly
service revenue we earn from our customers. ARPU is calculated by
dividing service revenues for the specified period by the average
customers during the period, and further dividing by the number of
months in the period. We believe ARPU provides useful information
to evaluate the recurring revenues generated from our customer
base.

Service revenues include postpay, prepaid, and roaming and other
service revenues, and do not include equipment sales, affiliate
and other revenues. Revenues from our Wi-Fi business, co-location
rental income, and revenues for network usage by Cingular
customers who have not yet transitioned from the former joint
venture networks in California, Nevada, and New York, are
therefore not included in ARPU.

(2) As a result of financial statement restatements by numerous U.S.
public companies and publication of a letter by the Chief
Accountant of the SEC to the American Institute of Certified
Public Accountants on February 7, 2005, clarifying the
interpretation of existing US GAAP accounting literature
applicable to certain operating leases and leasehold improvements,
T-Mobile USA changed its accounting for operating leases and
recorded a cumulative adjustment representing a net charge to net
income of $143 million in the fourth quarter of 2004, of which $71
million related to the years 2001 through 2003. The net cumulative
adjustment was comprised of a $200 million increase in rent
expense based primarily on rent escalation clauses related to
future renewal periods of cell site leases; an increase of $33
million in the equity loss from the network sharing venture with
Cingular also related to cell site leases; a reduction of $53
million in depreciation expense to adjust the depreciable life of
leasehold improvements; and a reduction of $36 million in the loss
provision related to dissolution of the network sharing joint
venture with Cingular. Financial results for 2004 and prior
periods have not been restated.

The following table provides the impact of the cumulative
adjustments as it relates to the quarterly results in 2004 as if
restated.

($ million) Total 2004 Q4 2004 Q3 2004 Q2 2004 Q1 2004
----------------------------------------------------------------------
OIBDA (2,5) (93.4) (24.2) (23.9) (23.2) (22.1)
----------------------------------------------------------------------
OIBDA margin (8) (0.9%) (0.9%) (0.9%) (0.9%) (1.0%)
----------------------------------------------------------------------
Depreciation (2.0) (.5) (.5) (.5) (.5)
----------------------------------------------------------------------
Equity (loss) (13.6) (3.5) (3.4) (3.4) (3.3)
----------------------------------------------------------------------
Other expense 36.4 36.4 - - -
----------------------------------------------------------------------
Net income/(loss) (72.6) 8.2 (27.8) (27.1) (25.9)
----------------------------------------------------------------------
($ / month)
----------------------------------------------------------------------
CCPU (3) 1 1 1 1 1
----------------------------------------------------------------------

(3) The average cash cost of serving customers, or Cash Cost Per User
("CCPU") is a non-GAAP financial measure and includes all network
and general and administrative costs as well as the subsidy loss
on equipment (handsets and accessories) sales unrelated to
customer acquisition. This measure is calculated as a per month
average by dividing the total costs for the specified period by
the average total customers during the period and further dividing
by the number of months in the period. We believe that CCPU, which
is a measure of the costs of serving a customer, provides relevant
and useful information to our investors and is used by our
management to evaluate the operating performance of our business.

(4) Cost Per Gross Add ("CPGA") is a non-GAAP financial measure and is
calculated by dividing the costs of acquiring a new customer,
consisting of customer acquisition costs plus the subsidy loss on
equipment (handsets and accessories) sales related to customer
acquisition for the specified period, divided by gross customers
added during the period. We believe that CPGA, which is a measure
of the cost of acquiring a customer, provides relevant and useful
information to our investors and is used by our management to
evaluate the operating performance of our business.

(5) OIBDA is a non-GAAP financial measure, which we define as
operating income before depreciation and amortization. In a
capital-intensive industry such as wireless telecommunications, we
believe OIBDA, as well as the associated percentage margin
calculation, to be meaningful measures of our operating
performance. OIBDA should not be construed as an alternative to
operating income or net income as determined in accordance with
GAAP, as an alternative to cash flows from operating activities as
determined in accordance with GAAP or as a measure of liquidity.
We use OIBDA as an integral part of our planning and internal
financial reporting processes, to evaluate the performance of our
senior management and to compare our performance with that of many
of our competitors. We believe that operating income is the
financial measure calculated and presented in accordance with GAAP
that is the most directly comparable to OIBDA.

(6) 2004 amounts exclude our investment to fund capital expenditures
in the network sharing joint venture with Cingular Wireless LLC
("Cingular"). 2005 amounts include capital expenditures in the
coverage areas previously served by the venture.

(7) 2004 amounts include sites in New York, California and Nevada
previously owned and operated by our network sharing joint
venture.

(8) OIBDA margin is a non-GAAP financial measure, which we define as
OIBDA (as described in note 5 above) divided by total revenues
less equipment sales.

T-MOBILE USA
Condensed Consolidated Balance Sheets
(dollars in millions)
(unaudited)

Sept. 30, Dec. 31,
2005 2004
----------- --------
ASSETS
Current assets:
Cash and cash equivalents...................$ 203 $ 182
Accounts receivable, net of allowance for
doubtful accounts of $156 and $158,
respectively............................... 1,991 1,657
Inventory................................... 355 444
Other current assets........................ 432 2,818
----------- --------
2,981 5,101
Property and equipment, net of accumulated
depreciation of $4,975 and $3,247, respectively. 10,368 6,718
Goodwill......................................... 10,704 10,704
Spectrum licenses................................ 11,502 11,087
Other intangible assets, net of accumulated
amortization of $278 and $791, respectively..... 295 35
Investments in and advances to unconsolidated
affiliates...................................... 5 1,203
Other assets and investments..................... 211 212
----------- --------
$ 36,066 $ 35,060
=========== ========

LIABILITIES AND SHAREHOLDER'S EQUITY

Current liabilities:
Accounts payable............................$ 864 $ 615
Accrued liabilities......................... 1,137 1,002
Loss provision on network transaction....... - 792
Deferred revenue............................ 357 335
Current portion of deferred tax liability... 22 -
Current portion of capital lease............ 1 1
Construction accounts payable............... 562 438
Current portion of long-term notes payable
to affiliates.............................. - 2,505
Total current liabilities............... 2,943 5,688

Long-term notes payable to affiliates............ 6,473 5,127
Deferred tax liabilities......................... 3,157 3,096
Other long-term liabilities...................... 1,725 395
----------- --------
Total long-term liabilities other
than shares............................ 11,355 8,618

Voting preferred stock........................... 5,000 5,000
----------- --------
Total long-term liabilities......$ 16,355 $ 13,618
----------- --------

Minority interest in equity of consolidated
subsidiaries 62 18

Commitments and contingencies

Shareholder's equity:
Common stock................................ 39,452 39,433
Deferred stock compensation................. - (3)
Accumulated deficit......................... (22,746) (23,694)
----------- --------
Total shareholder's equity.............. 16,706 15,736
----------- --------
$ 36,066 $ 35,060
========= ========



T-MOBILE USA
Condensed Consolidated Statements of Operations
(dollars in millions)
(unaudited)

Quarter Ended Quarter Ended
September 30, September
2005 30,2004
-----------------------------
Revenues:
Postpay.................................. $2,832 $2,370
Prepaid................................ 182 144
Roaming and other services............. 139 98
Equipment sales........................ 414 388
Affiliate and other.................... 235 35
-----------------------------
Total revenues...................... 3,802 3,035
-----------------------------
Operating expenses:
Network................................ 735 556
Cost of equipment sales................ 648 573
General and administrative............. 596 496
Customer acquisition................... 657 622
Depreciation and amortization.......... 558 295
-----------------------------
Total operating expenses............ 3,194 2,542
-----------------------------
Operating income......................... 608 493
Other income (expense):
Interest expense....................... (112) (175)
Equity in net losses of unconsolidated
affiliates............................ 1 (34)
Interest income and other, net......... 5 -
-----------------------------
Total other income (expense)........... (106) (209)
-----------------------------
Income before income taxes............... 502 284
Income tax expense....................... (44) (30)
-----------------------------
Net income............................... $ 458 $ 254
=============================



T-MOBILE USA
Condensed Consolidated Statements of Cash Flows
(dollars in millions)
(unaudited)

Quarter Ended Quarter Ended
September 30, September 30,
2005 2004
----------------------------
Operating activities:
Net income............................... $ 458 $ 254
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization.......... 558 295
Income tax expense..................... 44 30
Amortization of debt discount and
premium, net.......................... (9) (7)
Equity in net losses of unconsolidated
affiliates............................ (1) 34
Stock-based compensation............... 1 1
Allowance for bad debts................ (7) (2)
Deferred rent.......................... 6 -
Other, net............................. (21) (8)
Changes in operating assets and
liabilities:
Accounts receivable.................. (35) (122)
Inventory............................ (98) (218)
Other current assets................. 56 6
Accounts payable..................... 4 76
Accrued liabilities.................. 98 278
---------- -----
Net cash provided by operating
activities.......................... 1,054 617
---------- -----
Investing activities:
Purchases of property and equipment...... (585) (453)
Investments in and advances to
unconsolidated affiliates, net.......... - (244)
---------- -----
Net cash used in investing activities.... (585) (697)
---------- -----
Financing activities:
Long-term debt repayments................ (500) -
Long-term debt borrowings from
affiliates, net......................... - 277
Change in minority interest.............. 22 -
Book overdraft........................... 8 (211)
---------- -----
Net cash (used in) / provided by
financing activities................... (470) 66
---------- -----

Change in cash and cash equivalents....... (1) (14)
Cash and cash equivalents, beginning of
period................................... 204 122
---------- -----
Cash and cash equivalents, end of period.. $ 203 $ 108
========== =====



T-MOBILE USA
Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures
(dollars in millions, except for CPGA and CCPU)
(unaudited)

OIBDA can be reconciled to our operating income as follows (refer
to footnote 2 of the Selected Data Table for the quarterly impacts
of the cumulative operating lease adjustment):

YTD Q3 Q2 Q1 YTD Q3
2005 2005 2005 2005 2004 2004
----------------------------------------------
OIBDA $3,073 $1,166 $1,081 $826 $1,997 $788
Depreciation and
amortization (1,662) (558) (585) (519)(1,008) (295)
----------------------------------------------
Operating income $1,411 $608 $496 $307 $989 $493
==============================================

The following schedule reflects the CPGA calculation and provides
a reconciliation of cost of acquiring customers used for the CPGA
calculation to customer acquisition costs reported on our
condensed consolidated statements of operations:

YTD Q3 Q2 Q1 YTD Q3
2005 2005 2005 2005 2004 2004
------------------------------------------
Customer acquisition
costs $2,036 $657 $668 $711 $1,938 $622

Plus: Subsidy loss
Equipment sales (1,050) (414) (305) (331)(1,067) (388)
Cost of equipment
sales 1,884 648 575 661 1,594 573
------------------------------------------
Total subsidy loss 834 234 270 330 527 185
------------------------------------------
Less: Subsidy loss
unrelated to customer
acquisition (458) (133) (153) (172) (228) (100)
------------------------------------------
Subsidy loss related
to customer
acquisition 376 101 117 158 299 85

------------------------------------------
Cost of acquiring
customers $2,412 $758 $785 $869 $2,237 $707
==========================================

CPGA ($ / new
customer added) $310 $271 $310 $357 $315 $301



T-MOBILE USA
Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures
(dollars in millions, except for CPGA and CCPU)
(unaudited)

The following schedule reflects the CCPU calculation and provides
a reconciliation of the cost of serving customers used for the
CCPU calculation to total network costs plus general and
administrative costs reported on our condensed consolidated
statements of operations (refer to footnote 2 of the Selected Data
Table for the quarterly impacts of the cumulative operating lease
adjustment):

YTD Q3 Q2 Q1 YTD Q3
2005 2005 2005 2005 2004 2004
----------------------------------------------
Network costs $2,134 $735 $718 $681 $1,540 $556
General and
administrative 1,726 596 572 558 1,372 496
----------------------------------------------
Total network and
general and
administrative costs 3,860 1,331 1,290 1,239 2,912 1,052

Plus: Subsidy loss
unrelated to customer
acquisition 458 133 153 172 228 100

----------------------------------------------
Total cost of
serving customers $4,318 $1,464 $1,443 $1,411 $3,140 $1,152
==============================================

CCPU ($ / customer
per month) $26 $25 $26 $26 $24 $24


About T-Mobile USA, Inc.:

Based in Bellevue, Wash., T-Mobile USA, Inc. is a member of the
T-Mobile International group, the mobile telecommunications subsidiary
of Deutsche Telekom AG (NYSE:DT). T-Mobile USA's GSM/GPRS voice and
data networks in the United States (including roaming and other
agreements) reach more than 264 million people. In addition, T-Mobile
owns and operates the largest carrier grade, commercial wireless
broadband network in the United States, providing Wi-Fi at more than
6,400 public locations throughout the country. Through its Get More(R)
promise, T-Mobile provides customers with more minutes, more features
and more service. For more information, visit the company Web site at
www.t-mobile.com. T-Mobile(R) and Get More(R) are federally registered
trademarks of Deutsche Telekom AG and T-Mobile USA Inc., respectively.

About T-Mobile International:

T-Mobile International, one of Deutsche Telekom AG's three main
strategic business areas, is one of the world's leading international
mobile communications providers. T-Mobile International's
majority-held mobile companies today serve more than 83 million mobile
customers in Europe and the U.S. For more information about T-Mobile
International, please visit http://www.t-mobile.net/. For further
information on Deutsche Telekom, please visit
http://www.telekom.de/investor-relations.