BRUSSELS -- The Belgacom Group ended the first quarter of the year with a solid revenue in line with the guidance. Belgacom TV passed the 800,000 customer milestone and the total number of customers enjoying the advantages of our Packs increased to 653,000. Belgacom will continue to focus on customer satisfaction with the implementation of structural changes to enhance the customer experience.

Highlights

• Solid revenue growth in first quarter 2010 driven by full-consolidation of BICS. Revenue of EUR 1,641 million, a year-over-year growth of 10%

• On a comparable basis, the Group revenue slightly exceeds the first quarter of 2009 thanks to the strong upward trend of Belgacom TV revenue and the solid contribution of both fixed and mobile Internet.

• In the first quarter, Belgacom added 62,000 new Belgacom TV-customers resulting in a total customer base of 814,000 customers.

• Over the first quarter, an additional 92,000 customers subscribed to a convergent Pack, increasing the total number of customers to 653,000.

• Investments amounted to EUR 154 million in first quarter 2010, or 9.4% of Group revenue.

Comment from Didier Bellens, CEO of the Belgacom Group

“We are pleased to end the first quarter of the year with a solid revenue of EUR 1,641 million. This year-over-year growth of 10% is chiefly attributable to the full consolidation of the International Carrier business unit (BICS) and the contribution of MTN ICS. Excluding this impact, the turnover on a comparable basis was good as well, with our Group revenues slightly exceeding last year’s result. We achieved this thanks to a continued strong revenue growth from our Interactive Digital TV product and the substantial earnings from Fixed and Mobile data.

We see the success of our multi-play products continued. Over the first quarter, an additional 92,000 customers subscribed to one of our convergent Packs, increasing the total number of customers enjoying the advantages of our Packs to 653,000. Especially our unique market positioning with “Free TV” is a success beyond our expectations. Over the first three months of 2010, an additional 62,000 customers swapped their cable connection for Belgacom TV. By end of March, i.e. less than five years after entering the Digital TV market, we had 814,000 Belgacom TV-customers. This means that compared to one year ago we have grown our TV customer base by almost 50%.

We operate in a market which is still suffering from a subdued economic climate. At the same time, the competitive landscape is gradually changing, with competitors increasingly adopting a convergence strategy as well. But competition keeps us sharp and we have moved in the right direction by simplifying our product offering and making use of our advanced VDSL network, covering more than 74% of the Belgian population. As from March, our customers can enjoy a completely revamped Internet portfolio: Internet Start, Comfort, Favorite & Intense. To meet the consumers’ needs even more effectively, this new Internet offer “Belgacom boosts the internet” includes more speed – up- and downstream – and more volume. We were also the first in the Belgian market to launch unlimited surfing. On the mobile side, we continually keep focusing on our customer’s needs. Thanks to our high quality 3G-network, the best 3G-network in Belgium (coverage of 97%), we can for example address the growing needs of our mobile internet customers.

For the months to come Belgacom will continue to focus on customer satisfaction and we also want to maintain a leading position in innovation.”

Belgacom SA (Euronext: BELG)