EANS-Adhoc: freenet AG / freenet AG reports increase in earnings from core business for first half of 2010

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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6-month report

11.08.2010

freenet AG reports increase in earnings from core business for first half of
2010
• 1,644.3 million euros in Group revenue
• Recurring Group EBITDA reaches 173.2 million euros
• Recurring Mobile Communications EBITDA of 168.2 million euros
• Group result at 44.4 million euros
• 104.0 million euros cash flow from operating activities
• 696.1 million euros net debt

Büdelsdorf, 11 August 2010 - freenet AG improved the profitability of
its core business of mobile communications in the first half of 2010
despite difficult market conditions. First-half recurring EBITDA
(earnings before interest, taxes and depreciation/amortisation) in
the Mobile Communications segment - adjusted for one-off items -
increased by 4.7 million euros year-on-year to 168.2 million euros.
92.1 million euros of this was generated in the second quarter of
this year alone, against 91.9 million euros in Q2/2009.

In the first half of 2010 freenet AG generated Group third-party
revenue amounting to 1.64 billion euros, down from 1.78 billion euros
in the first half of 2009. The Mobile Communications segment
contributed 1.60 billion euros, or more than 97 percent, to total
segment revenue.

Group gross profit was down 3.4 percent compared to the first half of
last year, from 374.0 million euros to 361.4 million euros, while
freenet AG improved its gross profit margin by one percentage point
year-on-year to 22 percent in the first half of 2010.

Group EBITDA for the first half of 2010 was 159.1 million euros - up
9.1 percent on the previous year´s figure of 145.8 million euros.
This includes restructuring-related one-off items totalling 14.1
million euros for the Group. Recurring Group EBITDA - adjusted for
one-off items - came to 173.2 million euros for the first half of
2010, against 173.4 million euros for the first six months of 2009.

freenet AG increased its pre-tax earnings (EBT) year-on-year by 45.1
million euros to 38.6 million euros in the first half of 2010. The
first six months of the prior year had generated a loss of 6.5
million euros.

The drivers behind the key figures in Mobile Communications are
first, a 7.9 percent year-on-year decrease in mobile communications
customers to 16.53 million at end of June 2010 and second, the
stabilisation of contract customer ARPU (monthly average revenue per
user) to 24.2 euros in the second quarter of 2010 vs. 24.3 euros in
Q2/2009.

The Group result from continued operations increased by 175.7 percent
during the first half of 2010, to 44.0 million euros, vs. 16.0
million euros a year earlier. The Group result from discontinued
operations amounted to 0.4 million euros for the first half of 2010
against -6.0 million euros in the first six months of 2009. This
represents a net Group result of 44.4 million euros - an increase of
34.4 million euros year-on-year.

In the first six months of 2010, freenet AG generated 104.0 million
euros in cash flow from operating activities and reduced its net debt
by 93.7 million euros compared to year-end 2009, to currently 696.1
million euros.

|Important KPI's of freenet Group
|Accounting method: IAS/IFRS

|Overview Group |1st half |1st half |Q2/2010 |Q1/2010 |Q2/2009 |
| |2010 |2009 | | |adjusted*|
| | |adjusted*| | | |
| | | | | | |
|Result in EUR million | | | | | |
|Third-party revenue |1,644.3 |1,779.8 |838.2 |806.1 |891.8 |
|Gross profit |361.4 |374.0 |195.5 |165.9 |188.1 |
|EBITDA |159.1 |145.8 |88.2 |70.8 |70.4 |
|EBITDA recurring |173.2 |173.4 |95.0 |78.2 |93.3 |
|EBIT |62.6 |43.0 |39.3 |23.3 |19.5 |
|EBT |38.6 |-6.5 |28.7 |9.9 |0.0 |
|Group result from
continued operations |44.0 |16.0 |28.9 |15.0 |8.9 |
|Group result from
discontinued |0.4 |-6.0 |-5.3 |5.7 |0.5 |
|operations | | | | | |
|Group result |44.4 |10.0 |23.6 |20.8 |9.4 |

|Overview Mobile Communications segment
|1st half |1st half |Q2/2010 |Q1/2010 |Q2/2009 |
| |2010 |2009 | | | |

|Customer development in million
|Mobile Communications customers|16.53 |17.95 |16.53 |17.15 |17.95 |
|Thereof contract customers |6.60 |7.26 |6.60 |6.84 |7.26 |
|(excluding no-frills customers)| | | | | |
|Thereof prepaid customers |8.08 |9.43 |8.08 |8.50 |9.43 |
|Thereof no-frills customers ** |1.85 |1.25 |1.85 |1.81 |1.25 |

|Result in EUR million | | | | | |
|Revenue |1,598.7 |1,704.3 |815.9 |782.8 |857.0 |
|Gross profit |333.3 |340.9 |182.1 |151.2 |171.5 |
|EBITDA |155.5 |137.5 |85.9 |69.6 |70.6 |
|EBITDA-adjusted / recurring |168.2 |163.6 |92.1 |76.1 |91.9 |
|EBIT |65.2 |43.3 |40.2 |25.0 |23.9 |
|EBIT-adjusted / recurring |77.9 |69.4 |46.3 |31.6 |45.2 |

|Monthly average revenue per user(ARPU) in EUR
|Contract customer (excluding |23.5 |24.1 |24.2 |22.8 |24.3 |
|no-frills) | | | | | |
|Prepaid customer |3.0 |2.9 |3.1 |2.9 |3.1 |
|No-frills customer** |4.8 |5.6 |5.1 |4.5 |5.9 |

* The comparison figures have been adjusted retrospectively due to
IFRS 5 (presentation of the STRATO Group as a discontinued
operation). In addition, another retrospective adjustment was made
with regard to including the DSL distribution unit in the
discontinued operation "DSL Business". ** Starting in Q1/2010
including no-frills-prepaid.

end of announcement euro adhoc
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ots Originaltext: freenet AG
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Further inquiry note:

freenet AG

Investor Relations

Tel.: +49 (0)40 51306-778

E-Mail: ir@freenet.ag

Branche: Telecommunications
ISIN: DE000A0Z2ZZ5
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