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Press Release

telegate to take legal action against Deutsche Telekom for EUR70 million

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European Court judgement establishes binding legal basis


Munich December 15, 2004 - telegate plans to take legal action against Deutsche Telekom before the Cologne Regional Court before the end of this year. The company is demanding repayment of about €70 million plus accrued interest from the ex-monopolist. The reason for this action are the significantly excessive fees for the provision of user data for alternative telephone inquiry providers which Deutsche Telekom has been charging since the liberalization of the market in 1996 up to today, contrary to European law.

Furthermore, telegate is currently checking to see whether additional compensation claims can be put forward against Deutsche Telekom. The excessive data cost payments have led to an extreme financial burden for the company particularly during the initial market opening years causing a clear competitive disadvantage against the ex-monopolist. The company intends to make a decision with regard to filing a suit in due course. This could be done in Germany and/or also in the United States.

The legal basis for the new judicial disputes between telegate and the Deutsche Telekom AG is a decision of the European Court of Justice which defined the term "data costs" in a fundamental decision at the end of November. This definition corresponds to the judicial concept held by telegate since 1996 and the implementation has been requested from the German Regulatory Authority for Telecommunications and Posts (RegTP) several times in vain. The decision of the highest European Court is directly binding for German authorities and courts.

The Board of Management of telegate AG will provide information today, Wednesday, December 15, 2004 at 14:00 (MEZ) / 13:00 (GMT) during a telephone conference.

Press contact:

telegate AG
Claudia Strixner
Head of Public Relation
Fraunhoferstr. 12a
D-82152 Martinsried, München
Tel.: (089) 89 54-1180
Fax: (089) 89 54-1189
E-Mail:
presse@telegate.com
www.telegate.com