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Omnitel: Lire 1,232 bn. Investments as of Sept. 30, 1999

28 October 1999

Omnitel: Lire 1,232 bn. Investments as of Sept. 30, 1999 (111% Of Profit); Lire 5,125 bn. Turnover; 9 Million Customers as of October 9

    DUESSELDORF, Germany, Oct. 27 -- As of today, Omnitel, the
Mannesmann mobile telecommunications activity in Italy, gave the following
announcement concerning the present business development:

    The Italian mobile operator Omnitel, approx. 55 per cent owned by
Mannesmann, has closed the third quarter of 1999 with excellent results,
confirming the company's continued growth both financially and in terms of
market share.
    Customer growth was constant during the summer months.  At September 30
Omnitel had 8.9 million customers, and broke the 9 million threshold on
October 9, confirming Omnitel as co-leader on the Italian market as well as
the second mobile telecommunications operator in Europe.  Net growth in the
customer base till September 1999 was therefore 2.7 million subscribers.
    Turnover in the third quarter of 1999 amounted to Lire 1,918 bn., bringing
the overall turnover for the period January to September of the year to
Lire 5,125 bn., compared to Lire 2,953 bn. in the same period of 1998
(up 74%).  In particular, service revenues rose from Lire 2,578 bn. to
Lire 4,572 bn. (up 77%).  EBITDA for the period (Earnings Before Interest,
Taxes, Depreciation and Amortisation) was Lire 2,121 bn., accounting for 46%
of service revenues. In the same period of last year EBITDA was equal to
Lire 962 billion (37% of service revenues).
    Net profit was Lire 1,105 bn., compared to Lire 498 bn. for the same
period in 1998 (up 122%), and was posted after a tax accrual of Lire 455 bn.
    Between January and September Omnitel invested Lire 1,232bn with a view to
service innovation, technological solutions and constant customer focus (up
62% compared to the same period in 1998), equal to 111% of net profits for the
period.
    In particular, a part of these investments was dedicated to
Internet-related activities.  As well as the commercial launch of Omnitel
2000, the virtual store, http://www.spazioomnitel.it, was launched, reaching a
turnover of about 2 billion lire in just 4 months.  There will be further
developments in commercial activities on the Internet in the months to come.