ecotel communication ag / Quarter Results



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Transparency disclosure pursuant to section 17 para. 2 of the General Business Terms for OTC trading at FWB, the Frankfurt Stock Exchange:
ecotel communication ag releases its figures for the first nine months of 2006 and for third-quarter 2006

Düsseldorf, Nov. 14, 2006

- Increase in the margin on EBIT in the third quarter to 7.8% as against 6.3% in H1 2006
- EBIT in the third quarter of EUR 1.2 million
- EBIT target of EUR 4.4 million will certainly be reached, and EBIT growth of 50% planned for 2007

In the first nine months of 2006, ecotel communication ag booked a sales volume of EUR 46.5 million (+ 90% up on the prior-year period); EUR 15.8 million were generated in the third quarter (+86% up on the year-before quarter ). EBIT in the first nine months of the current business year came to EUR 3.2 million – in the third quarter, a figure of EUR 1.2 million was achieved. Compared with the year-before quarter, EBIT thus surged 390% - with the increase being 37% on second-quarter 2006. While in first-half 2006, the margin on EBIT remained unchanged on the year at 6.3%, in the third quarter it was boosted to 7.8%.

This growth in our results was mainly the product of better purchasing conditions in particular in our business customer segment, as the successful integration of DSLCOMP Communications GmbH meant that steps to optimize costs were realized in a very short space of time.
A key competitive edge ecotel enjoys continues to be the potential to exploit synergies from bundling end consumer and reseller business. Moreover, ecotel has now established itself as a one-stop shop, meaning that business customers can be offered comprehensive solutions based on bundling connections, voice and data services. ecotel thus intends to expand its share of the telecommunications budget of the 35,000 business customers from a current EUR 1,200 sales p.a. to as much as EUR 3,000 in the medium term.

By acquiring 51% of the shares in toBEmobile GmbH, ecotel has taken the first step to enter the mobile phone market. We plan to inroduce mobile phone products for business customers at the beginning of next year in order to then offer a complete portfolio of fixed-line and mobile-phone products. By taking over /bin/done digital solutions GmbH we have laid the basis for IT integration of product add-ons as well as, for example, precisely for mobile phone solutions into the existing ecotel platform.
ecotel assumes that it will certainly succeed in doubling EBIT to EUR 4.4 million in 2006 as announced.

Management plans to score 50% growth in EBIT in 2007 and a 40% increase in sales. The plan is to achieve this by selling bundled products to in existing business and to market new products such as mobile telephony. Moreover, strategic acquisitions will be pursued further with great intensity in order to further expand our position in the niche market for small and medium-sized companies.

We plan to switch the equity listing to the Prime Standard segment in 2007. To this end, we have already initiated the first steps, such as changing our accounting over from the German Commercial Code to conform to IFRS.
The quarterly report for third-report 2006 can be read or downloaded from our www.ecotel.de Web site.

About ecotel: 

ecotel is a network-independent telecoms provider founded in 1998, immediately after liberalization of the telco market. In what has to date been its core division, 'Solutions for Business Clients', the company provides voice, data and value-added services to small and medium-sized enterprises in particular, as well as direct access for voice and data traffic from a single source. Nationwide, more than 35,000 corporate clients now make use of ecotel’s standardized and customized telecom solutions.

ecotel has brought its products and services for telecoms corporation and non-branch promoters as well as Wholesale services together in its rapidly growing second division of 'Re-Seller Solutions'. Systems developed in-house and modern switching technology constitutes the interface between the two divisions and thus enables bundling of services
and telecommunications solutions on the basis of new technological standards at favorable rates, e.g., IP services incl. VoIP (Internet telephony).

ecotel communication ag is headquartered in Düsseldorf. In early 2006, a second hub was opened in Munich. At present, the company has a payroll of some 140 staff. In 2005, the telecoms provider placed no. 8 respectively 38 in 2006 in the Deloitte 'Technology Fast 50' competition.
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. Such offer is exclusively be made through and on the basis of a securities prospectus. This document must not be distributed outside of Germany, in particular not in the United States of America, Canada, Australia and Japan.


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

Fachmedien
Stefanie Toloszycki
Tel.: 0211-55 007-310
Fax: 0211-55 007 5 310
Email: presse@ecotel.de



DGAP 14.11.2006 

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Language:     English
Issuer:       ecotel communication ag
              Prinzenallee 9-11
              40549 Düsseldorf Deutschland
Phone:        +49 (0)211 55 00 7300
Fax:          +49 (0)211 55 00 75300
E-mail:       achim.theis@ecotel.de
WWW:          www.ecotel.de
ISIN:         DE0005854343
WKN:          585434
Indices:      
Listed: Freiverkehr in Berlin-Bremen, München, Düsseldorf, Stuttgart;               Entry Standard in Frankfurt
 
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