KPN Starts Buyback

DEN HAAG, Netherlands -- KPN today commences its share repurchase program for 2009. As announced during the third quarter results on 22 October 2008, KPN will repurchase EUR 1 bn of its own shares until the end of 2009, assuming no material transactions and assuming no material further deterioration of financial markets in the period.

In order to meet the interests of both shareholders and bondholders, KPN is committed to its self-imposed financial framework with a net debt to EBITDA ratio between 2.0x and 2.5x. Net debt to EBITDA stood at 2.4x at the end of Q3 2008 and is expected to be lower by the end of 2008.

In line with previous share repurchase programs, KPN has mandated an intermediary to repurchase KPN shares in the open market on KPN’s behalf, allowing the execution of share repurchases during closed periods. The program will be executed in accordance with the terms of the mandate granted by KPN's General Meeting of Shareholders on 15 April 2008. During the repurchase program a weekly press release will be published with an update on the progress made. All repurchased shares will be cancelled in due course.

KPN Telecom NV (NYSE: KPN)