Dutch State Lowers KPN StakeDutch State Lowers KPN Stake

THE HAGUE -- KPN agrees to repurchase 60 million sharesfrom the State of the Netherlands

The State of the Netherlands has announced the sale of 105 million ordinary shares in KPN to ABN AMRO Rothschild. To support this sell down, KPN announces that it has in parallel entered into an agreement to repurchase 60 million ordinary shares from the State for a total consideration of approximately EUR 500 million. KPN intends to cancel all of the shares so repurchased. The combined sales by the State represent approximately 8% of KPN’s outstanding share capital, and reduce the holding of the State in KPN to approximately 8%.

Following this transaction, the State of the Netherlands announced that it shall dispose of its special share and we expect to repurchase such special share prior to year-end.

KPN has at earlier occasions expressed its intention in principle to support a State-initiated sell down through a repurchase in order to further reduce the existing overhang in the market. The repurchase fits within the financial framework.

KPN Telecom NV