KPN Buys CSS

THE HAGUE, The Netherlands -- KPN has acquired Dutch communication solutions company CSS Telecom. CSS Telecom gives advice on, supplies, implements and maintains business communication total solutions for spoken, visual and data communication. CSS Telecom targets small and medium businesses and the health care sector in particular.

The acquisition fits in with KPN’s aim of further strengthening its position in the business communication solutions market. CSS Telecom’s strong position in the market for small and medium businesses is also in keeping with the ambition of better servicing the small and medium business sector. Moreover, CSS Telecom’s focus on the health care sector dovetails well with KPN’s earlier initiatives in health care, such as E-Zorg and Zorg op Afstand.

In conjunction with the takeover of Newtel Essence, which was announced recently, the acquisition of CSS Telecom further strengthens KPN’s position in the field of Avaya solutions.

CSS Telecom has branches in Groningen, Utrecht, Rotterdam and Venlo has 191 employees. Sales in 2005 totaled EUR 28,6 million.

Both works councils have advised in favor of the takeover.

KPN Telecom NV (NYSE: KPN)