BRUSSELS, Belgium --

Fixed Line Services (Belgacom FLS)

The flat fees and bundled offers continue to have a positive impact onoperational results but lead to lower revenues out of traditional voiceproducts. This decline is however partially off-set by other revenue lines,leading to a revenue result of Belgacom FLS’ core business of -2.8% (totalBelgacom FLS revenue excluding Belgacom TV, Telindus and disposedcompanies).

The number of subscribers to Belgacom TV passed the 50,000 mark at the endof April (vs. 42,000 at the end of March). An accelerated growth at the beginningof the second quarter, was largely due to the increasingly attractive offer:Belgacom TV launched thematic channel packages and made it possible to watchTV broadcasts on demand. An aggressive marketing campaign, that waslaunched at the end of the first quarter, and the improved coverage contributedto the success as well.

Telindus, included in Belgacom’s consolidated accounts since 1 January 2006,has contributed EUR 179 million to Belgacom’s turnover. Given the synergiesbetween the two organizations, the aim is to develop a unique combined offeringthat responds to the various business opportunities of the 21st century. So far,the alignment between Belgacom and Telindus proves to be successful. Tworecently won projects in Belgium (ING and Belnet) clearly demonstrate thecustomers’ faith in the Belgacom and Telindus partnership.Mobile Communication Services (Proximus)65,000 active customers were added year-over-year, arriving at a total of4,260,000 active customers at the end of March 2006. In the first quarter of2006, almost 7,000 active customers were added. Proximus was able to increaseits active customers mainly by introducing new bundled tariff and loyalty offersfor both residential and business customers.

At the end of March 2006 the ARPU rose to EUR 39.8 for the active customerbase compared with EUR 39.6 at the end of March 2005. Including credits anddiscounts, the ARPU for the first quarter of 2006 was EUR 37.2.Proximus’ revenue decreased 0.6% (EUR 3 million), compared with the sameperiod in 2005, whereas the service revenue increased 0.8%, due to the growthof data services (mainly advanced data services such as mobile officeapplications).

The number of 3G customers (more than 41,000 at the end of March) isincreasing in line with expectations, as is the use of the 3G services. Thissummer, Proximus will upgrade the 3G network with HSDPA technology in sevencities, enabling broadband mobile internet to its customers.

Q1 2006 FINANCIAL RESULTS

Belgacom International Carrier Services

Belgacom ICS’ revenue increased 9% compared to the first quarter of 2005.

Voice revenue increase was mainly related to fixed inbound/outbound volumesgenerated by the Swiss partner in the joint venture. Data revenue growth relatesto revenues from mobile data products (mainly signaling products and SMS).

Thanks to the revenue growth, the EBITDA increased 10% year-over-year.

Belgacom ICS has progressed on the strategic objectives for the first quarter.

With respect to the consolidation of international carrier services, in February2006, MTN Group, a leading provider of cellular and communications services inAfrica, signed an outsourcing agreement with Belgacom International CarrierServices covering MTN’s international voice and data traffic.

Group Financials

During the first quarter of 2006, the total revenue of the Belgacom Groupdecreased 4.5% to EUR 1,507 million. Excluding non-recurring revenue andadjusted for the contribution of entities disposed of in 2005 and of new entitiesacquired in 2006 (Telindus Group), the Group’s revenue decreased 0.6% (EUR 8million).

The Group’s operating income before depreciation and amortization decreased33% to EUR 545 million. Excluding non-recurring items and adjusted for thecontribution of disposed or new entities, the Group’s EBITDA decreased 6.2%(EUR 36 million).

Outlook

Belgacom reiterates its guidance for the full year as stated at the time of the 2005

Year End results:

Fixed Line Services (FLS)

The Fixed Line Services unit expects the same trends to continue and confirmsits guidance for the year 2006. For its core business, Belgacom FLS could see arevenue decline of up to 3% while it will work hard to keep the EBITDA marginflat for the year 2006.

For Belgacom TV, there will be an estimated negative EBITDA impact of aboutEUR 30 to 40 million with a target of more than 100,000 customers for BelgacomTV by the end of the year and an estimated ARPU of EUR 13.Telindus expects to continue the current growth trend and to continue toimprove the profitability.

Mobile Communications Services (Proximus)

Even though the first quarter was above expectations, Proximus believes that itsforthcoming initiatives, the increasingly competitive environment and thepossibility of price declines of interconnection rates will place additional pressureon revenues and EBITDA margin.

Therefore Proximus reiterates its guidance for the full year. Proximus willcontinue to apply its Market Share Leadership program. This together with theannounced reduction of the mobile termination rates will cause revenues todecline about 3 percent.

Q1 2006 FINANCIAL RESULTS

In addition competition continues with a number of very aggressive pricingactions. If Proximus has to respond to these actions to defend its market sharethis could lead to a further decline of up to 2 percent in Proximus revenues in2006.

There will be continued pressure on the EBITDA margin, but the decline shouldbe limited to a level of 46% because cost control.

Belgacom SA (Euronext: BELG)