ecotel communication ag / Quarter Results

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- Development of business dependent on regulatory decisions - Ethernet leased lines as new growth driver

Düsseldorf, May 15, 2009
Revenues in the first quarter decreased 10% from EUR 26.9 million to EUR 24.1 million. The decline can be attributed mainly to the competitive situation and the suspended processing of the uninterrupted takeover of access lines by Deutsche Telekom AG.

EBITDA was EUR 1.2 million and stayed EUR 0.5 million below previous year figures. EBIT in the first quarter was EUR 0.3 million and was also EUR 0.5 million lower than in the previous year. Net income was EUR 0.1 million.
The consolidation of the subsidiaries was further pushed during the reporting period. The merger of the B2B business of nacamar GmbH and of Phasefive AG and the corresponding entry into the commercial register should be finalized by the end of the second quarter. The restructuring and integration of the B2B data business has been completed successfully and ecotel's data business is back to healthy margins.
Furthermore, ecotel's new Ethernet product was successfully launched in the market. These innovative 'future proof leased lines' allow ecotel to provide companies with data connections ranging from 10 Mbit/s up to 10 Gbit/s at any location in Germany.

Investments in the first quarter were EUR 1.3 million. They comprise the installation of a state of the art backbone infrastructure, an additional New Media streaming platform and new 'blade server proof' rack systems in the data center, which form the base of new revenues in the future.
The current economics situation and the upcoming regulatory decisions complicate the release of a guidance for 2009. The management expects 2009 revenues and EBITDA to stay on 2008 level.

The complete quarterly report can be downloaded from ecotel's website (www.ecotel.de ).


About ecotel communication ag:

ecotel is a publicly listed 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 serves appr. 40.000 business customers within Germany with standardised and individual telecommunications solutions and consistently implements its 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' contains ecotel's fast growing subsidiaries and new ventures. Apart from PPRO, easybell, ecotel private and toBEmobile this division also includes nacamar's New Media business, which has been transferred into this unit.

ecotel was founded in 1998 and is headquartered in Düsseldorf. At present, the group has approx. 210 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 four 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:

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

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

Further information: www.ecotel.de.




15.05.2009  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  
End of News DGAP News-Service  

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