Deutsche Telekom Confirms 2007 Financial Targets

FRANKFURT -(Dow Jones)- German telecommunications company Deutsche Telecom, Thursday confirmed its 2007 financial targets.

Chief Executive Rene Obermann said in a speech at the annual shareholders' meeting in Cologne that Deutsche Telekom continues to lose fixed-line customers.

Obermann said it will be difficult to keep further customers from turning their backs on Deutsche Telekom in the future, due to competitive imbalances he blames on German telecoms regulations.

However, he pointed out that, in the meantime, broadband Internet connections are positive contributors to growth. This year, the company targets a market share of at least 40% in terms of new customers, he said. In 2006, market share was less than half that figure. He noted the 2007 goal is ambitious but achievable.

He also acknowledged that the main 2007 financial targets are demanding. The planned adjusted operating profit of EUR19 billion and free cash flow of around EUR5.7 billion won't be reached without some effort, he said. "We will have to work hard in the current year to reach this goal," Obermann added.

In terms of income from investments, Obermann said this should reach the three-digit million range. He noted that the company is in exclusive negotiations with French Internet company Neuf Cegetel regarding the sale of Deutsche Telekom's French subsidiary, Club Internet. He said the company hopes to close the deal in the first half of this year.

He also said the sale of Deutsche Telekom's real-estate marketing company Sireo to previous partners has been agreed upon. The sale of an additional two real-estate assets has also been decided upon, he added. Obermann said Deutsche Telekom has been receiving income from divestments since the beginning of 2007.

Web site: http://www.telekom.de

-By Stefan Paul Mechnig, Dow Jones Newswires; +49 (0) 211 13 87 213

(END) Dow Jones Newswires"

Posted to the site on 3rd May 2007