BRUSSELS, Belgium -- Very strong financial performance and accelerated customer growth for Belgacom TV and Proximus.

Belgacom Group and convergence

In response to a growing demand from its customers, and as a first step towards convergence, theBelgacom Group launched a number of “bundles” in the first half of 2007. This enables residentialcustomers to purchase a combination of several products or services and thus obtain attractive ratereductions. Today customers can choose between “Internet + TV Pack”, “Internet + TV + Mobile Pack” or“Internet + Mobile Pack”. The launch of bundled services proves to be very successful and has been adriver for growth in Belgacom TV and Mobile customers.For its professional customers, Belgacom launched Belgacom Explore, a particularly innovative range ofservices that combine the strengths of Belgacom, Proximus and Telindus. This initiative receivedLightreading’s "European service provider innovation award" at the Ethernet Expo event in London.Belgacom impressed the jury by demonstrating that fixed, mobile and IT can be integrated and offered ina single end-to-end solution.

Fixed Line Services

During the first six months of 2007, Belgacom FLS total revenue increased 0.5% to EUR 1,823 million comparedwith the same period last year. The decline of traditional voice revenue was limited to 4.9% and fully offset byrevenue growth from Internet, TV and ICT activities.Internet revenue growth reached 12.0%, driven by higher DSL volumes and good results in terms of averagerevenue per user. End of June 2007, Belgacom’s total ADSL customer base counted 1,176,284 broadband lines,a year-over-year increase of about 120,000 or +11%.

ICT revenue evolved positively, adding 7.2% compared to the first six months of 2006. The product group ICTconsists for a very large part of revenue generated by Telindus Group, but also contains Belgacom ICT productssuch as Security, Housing, Hosting etc. The year-over-year revenue increase is amongst others due to thecontribution of the newly acquired Dutch subsidiary ISIT.Belgacom TV added 51,683 new subscriptions during the first half of 2007 reaching a total of 191,348customers at the end of June 2007. The second quarter (+41,857 customers) showed a clear positive effect of different service, content and pricing actions such as Comfort View (Pause TV, instant Rewinding, PVR),additional channels (MTV, Nickelodeon) in Classic+ offer and an extended video-on-demand offering. Especiallythe "Internet +TV" packs proved to be a successful volume driver, confirming Belgacom's strong position ontriple/quadruple play services.

Mobile Communication Services (Proximus)

Proximus’ customer acquisition strategy proved to be successful, leading to a strong and qualitativecustomer gain in the first half of 2007 (+ 104,388 active customers). Thanks to the improved customerportfolio, the total revenue decrease of Proximus was limited to 3.1% compared to the first half of 2006.Excluding the impact of the Mobile Termination Rate cuts, which took effect on 1 November 2006 and 1May 2007, the revenue increased slightly by 0.2%.

Net service revenue declined 2.9%. The Mobile Termination Rate cuts were the main drivers of theVoice services revenue evolution (-5.7%), fully offsetting the positive impact of customer growth.Excluding the impact of the MTR cuts of November 2006 and May 2007, net service revenue increased by0.6%.

As a result of successful pricing offers such as “Freetime” and the “Bonus for Life” campaign, Datarevenue -before deduction of free traffic- grew 28% year-over-year and represents about 23% of thetotal MCS revenue. This also includes Advanced Data, evolving positively thanks to Mobile Solutions andNetwork Services.

At the end of June 2007, the blended net ARPU was EUR 35.6 for the active customer base, comparedto EUR 37.7 at the end of June 2006. The decrease in blended net ARPU is primarily driven by the impactof the Mobile Termination Rate cuts in November 2006 and May 2007 (impact of EUR 1.4) as well as bythe success of the new Pay&Go and Smile tariffs plans.

Belgacom ICS

The Belgacom ICS revenue increased 3.3 % compared to the first half of 2006. The voice revenueincrease was mainly the result of a significant growth in the volume of transit traffic for mobile operators,with quality features offering higher unit margins, and the result of the agreement with MTN1. Non-voicerevenue growth was driven by the mobile data portfolio (mainly signaling products and SMS transittraffic).

Group Financials

During the first six months of 2007, the Belgacom Group’s total revenue slightly increased 0.2% toEUR 3,039 million.

The Group’s EBITDA decreased 2.8% year-over-year to EUR 1,079 million.

Net income increased 30% to EUR 564 million for the six months ended 30 June 2007, compared to EUR434 million for the same period in 2006.

The cash flow before financing activities, or “free cash flow”, evolved from a negative balance of EUR 50million in the first half of 2006 to a positive balance of EUR 607 million in the first half of 2007.

Updated Outlook

Fixed Line Services (FLS)Based upon the good financial results of the first half of 2007 and taking into account the expected financialimpact following the lowered Fixed-to-Mobile prices since 1 May 2007, Belgacom estimates that:

Related to Belgacom TV:

Mobile Communications Services (MCS)

Thanks to the success of its commercial strategy, Proximus estimates its overall business revenue to increasearound +1%.

However, regulation of Mobile Termination Rates and Roaming will impact 2007 results negatively:

Therefore Proximus updates its overall 2007 estimates, including the impact of Mobile Termination Rate cutsas well as Wholesale – and Retail roaming regulation to:

Belgacom SA (Euronext: BELG)