28.02.2006 – 10:21

freenet.de AG

euro adhoc: freenet.de AG
Financial Figures/Balance Sheet
freenet.de AG in 2005: 50 Percent Revenue Growth, Pre-tax Earnings on Plan

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  The issuer is responsible for the content of this announcement.

28.02.2006

· Rising revenues in all segments  · Adjusted pre-tax earnings on par
with previous year despite massive investments in sustained growth  ·
Nearly 700,000 DSL customers at year-end (doubling of DSL customers
since year-end 2004)

freenet.de AG / Hamburg - freenet.de AG, Hamburg, significantly
increased its revenues in all four of its business segments in 2005.
Despite massive investments in future growth, pre-tax earnings -
adjusted for merger-related non-recurring expenses - were on par with
the previous year’s levels (the financials reported in the following
are preliminary figures under IFRS).

Internet Access - dominated by a thriving broadband business - was
the strongest revenue driver, contributing over EUR339.0 million;
within a single year, the number of DSL customers doubled from
350,000 to nearly 700,000 at the end of 2005. freenet also managed to
add important telephony market shares in 2005. Accordingly, revenues
in this segment rose by seven percent to over EUR158.2 million
despite dwindling prices. freenet’s Portal business also delivered a
gratifying performance, increasing its revenues by over 182 percent
to EUR100.6 million. Apart from the highly successful marketing of
the entire freenet.de network, and flourishing Internet sales of
products, the successful integration of the STRATO Medien AG
(acquired in Q1/2005) and its hosting business played an essential
role in this success. B2B revenues surged by over 2,100 percent to
EUR117.3 million, fueled by the 2005 acquisition of the value-added
services provider NEXT-ID GmbH (formerly Talkline ID GmbH). With
annual revenues of EUR715.1 million, freenet not only grew its total
revenues by over 50 percent year on year, but also well exceeded the
at the beginning of the year 2005 given forecast (over EUR650
million).

The second half of 2005 in particular was fraught with aggressive
competition, the intensity of which came as a surprise even to the
freenet Executive Board. Despite this freenet invested massively to
ensure sustained growth in all its lines of business. Even given this
background, the results were on par with the previous year (all
financials in the following are reported without taking into account
merger-related non-recurring expenses totaling EUR11.7 million): At
EUR128.3 million (EUR127.4 million in 2004), adjusted EBITDA is
within the range projected for 2005 (EUR125 million to EUR140
million). Adjusted earnings before taxes came to EUR92.6 million
(EUR91.7 million in 2004).

freenet is one of Germany’s fastest growing telecommunications
companies and continues to strive for steady growth in all four of
its pillars. In light of the planned amalgamation between freenet.de
AG and mobilcom AG, it is not yet foreseeable at this point when the
final business figures will be released.

                             2005      2005 (incl. merger-related 2004
                             adjusted* non-recurring expenses)    adjusted**
Revenues                     715,085   715,085                    471,582
Segment: Internet access     338,970   338,970                    282,727
Segment: Portal              100,643   100,643                    35,592
Segment: Voice               158,153   158,153                    148,132
Segment: B2B Services        117,319   117,319                    5,131
EBITDA                       128,280   116,596                    127,390
Earnings before taxes (EBT)  92,615    80,931                     91,683

Financial data per IFRS; in TEUR / Source: freenet.de AG * Adjusted
for merger-related non-recurring expenses totaling TEUR 11,684. **
Adjustments as part of the first-time application of IFRS 2 for 2004.

end of announcement                               euro adhoc 28.02.2006 09:42:58

Further inquiry note:

Andreas Neumann
Investor Relations
Tel.: +49 (0)40 51306 778
E-Mail: IR@freenet-ag.de

Branche: Online
ISIN: DE0005792006
WKN: 579200
Index: TecDAX, CDAX, Prime All Share, HDAX, Technologie All Share,
Midcap Market Index
Börsen: Frankfurter Wertpapierbörse / regulated dealing/prime
standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Niedersächsische Börse zu Hannover / free trade
Bayerische Börse / free trade