New Framework Agreement Is Sealed

T-Systems Expands International Cooperation With DaimlerChrysler

FRANKFURT AM MAIN, Germany, Sept. 3 -- DaimlerChrysler and T-Systems are expanding their international cooperation with a new frame contract. The division of Deutsche Telekom develops applications for the car manufacturer, operates data centers and supports data networks and workstation systems worldwide. The contract covers an initial term of three years with the option to extend until 2008.

The global frame agreement bundles seven service agreements and forms the umbrella for all T-Systems service activities in the area of information and communications technology. In addition to the operation of mainframe and distributed (client-server) systems, T-Systems also develops and supports the automobile company's business-critical applications, for example for automobile development, manufacturing, sales, customer support and corporate steering. Users at DaimlerChrysler locations worldwide also take advantage of T-Systems' services for network management and workstation systems.

"This contract not only confirms our trusting relationship and successful cooperation, it is also a testament to T-Systems' strong position internationally," explained Konrad F. Reiss, Deutsche Telekom Board Member and T-Systems CEO. "Particularly in the automobile and manufacturing industries, we have assumed a leading position. T-Systems' services and solutions strengthen the competitiveness of our customers," emphasized Reiss. "On the basis of the new contract, we will make our contribution to the success of DaimlerChrysler."

Numerous projects have already demonstrated the long-standing cooperation between both partners. One project, for example, is a system that shortens the development cycle of new vehicles, speeding up the market readiness of new models. Here, engineers working around the world cooperate in the development of three-dimensional digital models.

A further example: Both partners have developed a spare-parts management system for Mercedes-Benz dealers Europe-wide. It ensures fast processing and therefore faster delivery. During the pilot phase, the system improved delivery times by 30 percent. Beginning this year, the solution is being implemented successively throughout Europe.

T-Systems

is one of Europe's leading providers of information and communications technology (ICT). Within the Deutsche Telekom group, T-Systems is responsible for serving major business accounts. The company has some 43,000 staff on its payrolls in more than 20 countries. In 2002, the solutions provider generated Euro 10.5 billion(1) in sales.

T-Systems' solutions improve in the business competitiveness of its customers in the industry sectors telecommunications, services and finance, public and healthcare as well as manufacturing. For its customers, the company optimizes processes, cuts costs and improves earnings, making targeted use of industry expertise and cutting-edge technology.

Its services range from the integration of new ICT solutions into existing customer systems, through the implementation and operation of desktop systems, data centers and networks, all the way to telecommunications services and solutions for international carriers.

For more information about the company and its services, see www.t-systems.com .

(1) T-Systems' 2002 German GAAP total revenues of EUR 11.3 billion as adjusted to give retroactive effect to the new accounting treatment of its agency business implemented on January 1, 2003. The adjustment reduces T- Systems' net revenues by approximately EUR 820 million. For further information, please refer to the "Reconciliation to new structures" at p. 42 in Deutsche Telekom's 2003 First Quarter Report at http://download-dtag.t-/ online.de/englisch/investor-relations/4-financial-reports/interim- reports/2003_q1.pdf