KPN Reports Q3 Profit

Revenue growth core business 3.1% (Mobile 6.5%; Fixed 0.8%)*

398,000 net mobile customer additions, of which E-Plus 248,000, resulting in a total of 14.2 million mobile customers

Net addition i-mode customers of 188,000 resulting in a total of 541,000

96,000 new ADSL connections, resulting in a total of 609,000

Profit before tax of EUR 451 million (Q3 2002: EUR 241 million)*

EUR 839 million free cash flow (Q3 2002: EUR 1,096 million)**

Net debt reduced to EUR 9.4 billion (Q3 2002: EUR 13.9 billion)

Early redemption of bonds of EUR 407 million and EUR 50 million on the securitisation program and in addition, in October early redemptions of EUR 671 million

On November 7th KPN sold its 15% stake in Hutchison 3GUK for GBP 90 million
* excluding exceptional items
** net cash flow from operating activities after capex, interest, tax and restructuring expenses

CEO Ad Scheepbouwer:
"I am pleased to announce that KPN is returning to the ranks of cash dividend paying companies. It is encouraging to see that we have been able to deliver revenue growth across our core activities. I am especially satisfied with the strong customer growth at E-Plus in Germany and the revenue increase from our broadband activities in the fixed division in the Netherlands. Moreover we have continued to achieve strong cash generation during the quarter."

Highlights results third quarter 2003 (excluding exceptional items)
In the third quarter of 2003, KPN recorded a profit before taxes of EUR 451 million (Q3 2002: EUR 241 million). Net profit after taxes amounted to EUR 172 million, compared to a net profit of EUR 38 million in the third quarter of 2002. In the third quarter of 2003, total charges related to exceptional items amounted to EUR 33 million compared to a profit of EUR 30 million in Q3 2002.

Furthermore, the operating revenues grew by EUR 55 million, or 1.8% to EUR 3,082 million. The core segments of KPN (including their intercompany revenues, excluding exceptional items) recorded a growth of EUR 96 million (3.1%) compared to the same period last year. Operating EBITDA grew by 129 million, or 11.3%, from EUR 1,145 million in the third quarter of 2002 to EUR 1,274 million in the corresponding period of 2003.

KPN Mobile