COLT Reports Q1

LONDON -- COLT Telecom Group S.A. announces results for the quarter ended 31 March 2009

Q1 FINANCIAL RESULTS

Compared to Q1 2008

• Revenue increased by 1.3% to €416.2m and increased by 4.5% on a constant currency basis
• Data revenue grew by 3.7% to €199.7m and grew by 7.5% on a constant currency basis
• Managed Services revenue grew by 32.7% to €37.3m and grew by 38.8% on a constant currency basis
• Gross margin before depreciation remained constant at 38.9%
• EBITDA (1) increased by €6.8m or 9.4% to €78.9m
• Profit before tax and exceptional items increased by €8.5m to €17.1m
• Free cash outflow (2) decreased from €16.5m to €11.1m
• Capital expenditure decreased from €67.5m to €49.6m

The Group’s financial position has improved significantly, with cash and cash equivalents of €458.1m and net funds of €195.9m at the end of the quarter, including proceeds of €199.1m from the Q1 Open Offer.

Commenting on the results, Rakesh Bhasin, Chief Executive Officer, said: "Despite ongoing tough trading conditions, I am pleased to report another solid quarter of progress reflecting the resilience in COLT’s business model. “With the proceeds of the Open Offer, COLT now has a significantly improved financial position and we were able to repay all of our outstanding debt in April.

“We will continue to manage our business tightly through the challenging trading conditions that are forecast for the business environment as a whole in 2009."

Colt Technology Services Group Ltd