ecotel communication ag / Quarter Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
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* Ongoing investments for upcoming convergence products * Confirms upper limit of the 2008 revenue guidance 2008 * 2008 results affected by one time effects

Düsseldorf, March 15, 2007
Revenues grew by 31% from € 20.6 million to € 26.9 million Euro. The growth was mainly driven by the 'Resale' and 'New Business' segment.
EBITDA was € 1.6 million and stayed on previous year level compared with the adjusted first quarter revenues* of 2007. EBIT in the first quarter was € 0.8 million and was € 0.3 million below the adjusted previous year figures as a result of higher depreciation of intangible assets. Earnings were € 0.3 million. This corresponds to earnings per share of € 0.07. Earnings per share adjusted for deferred taxes were € 0.12.  
Various expenses and investments in new processes and systems (e.g. Carrier Aggregation Platform) as well as new products (e.g. Fixed Mobile convergence Products and Unbundled Local Loop access) continue to affect the earnings situation of the company for the first half of 2008. However, these activities form the base for new revenues in the business and resale segment and ecotel’s future business proposition.
ecotel considers 2008 as the year of consolidation and new orientation. The company focuses on the integration of the acquired companies and plans to leverage the synergies. Beyond this ecotel expects to identify new growth potential in all business segments.

In order to strengthen its competitive position ecotel has started to partition its business in three business divisions: Business customers, Resale and New Business. From this quarter onwards ecotel will report its financial results according to these three business segments.    
Based on the results of the first quarter 2008 and the anticipated revenue and earnings development ecotel maintains its guidance for 2008. The company expects to reach the upper limit of the revenue guidance of appr. € 100 – 110 million and to generate an EBITDA adjusted for extraordinary cost and revenues of more than € 7 million.

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* A comparison with the previous year figures is of limited value due to the fact that the 2007 figures contain significant one time revenues. In addition, the quarterly and first half financial figures of 2007 included insufficient provisions for 'unexpected' costs at nacamar GmbH, which were readjusted only in the third quarter of 2007.



About ecotel communication ag:

ecotel is a telecommunications company, which operates in Germany and focuses on three  business divisions.

In its core division 'Business Customers' the company offers an integrated product portfolio of voice, data and mobile services. ecotel meanwhile provides more than 45.000 business customers within Germany with standardised and individual telecommunications solutions and consistently pushes its of fixed mobile convergence (FMC) strategy.
In its second division 'Wholesale Customers' the company provides carrier and wholesale services to other telecoms operators and to non-industry distributors. ecotel deploys state of the art enabling and switching platforms in order to provide its product portfolio (unbundled local loops, broadband access lines, mobile services) to other resellers. At the same time the company achieves economics of scale and broadens its value chain for its own core business 'business customers'.

The division 'New Business' comprises ecotel’s fast growing subsidiaries and new ventures. Apart from PPRO, easybell, ecotel private and toBEmobile the division also includes nacamar’s New Media business, which will be transferred into an independent business unit.

ecotel was founded in 1998 and is headquartered in Düsseldorf. At present, the group has 220 employees. It is among the fastest growing technology companies and was ranked among the top 50 companies in the Deloitte 'Technology Fast 50' competition for the past three consecutive years.


Please note:
 
This publication does not constitute an offer for the sale of shares in the company or a solicitation of an offer for the purchase of shares in the company. Furthermore this publication shall not constitute a securities prospectus. This document must not be distributed outside of Germany, in particular not in the United States of America, Canada, Australia or Japan.

Press contact:

ecotel communication ag

Wirtschafts- und Finanzmedien
Annette Drescher (Assistentin des Vorstandes)
Tel.: 0211-55 007-740
Fax: 0211-55 007 5 740
E-Mail: presse@ecotel.de

Fachmedien
Alexandra Rath (Leitung Marketing / PR)
Tel.: 0211-55 007-310
Fax: 0211-55 007 5 310
E-Mail: presse@ecotel.de

Further information: www.ecotel.de.


15.05.2008  Financial News transmitted by DGAP

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Language:     English
Issuer:       ecotel communication ag
              Prinzenallee 9-11
              40549 Düsseldorf
              Deutschland
Phone:        +49 (0)211 55 00 70
Fax:          +49 (0)211 55 00 7 222
E-mail:       info@ecotel.de
Internet:     http://www.ecotel.de
ISIN:         DE0005854343
WKN:          585434
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Stuttgart, München, Düsseldorf  
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