EANS-Adhoc: freenet AG / freenet AG reports increase in earnings for first nine months of 2010

--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------

9-month report

10.11.2010

10/11/2010

freenet AG reports increase in earnings for first nine months of 2010

• 2,491.2 million euros in Group revenue
• Recurring Group EBITDA at 268.9 million euros
• Reported Group EBITDA at 244.3 million euros
• Group result at 73.0 million euros
• 165.6 million euros cash flow from operating activities
• 677.8 million euros net debt

Büdelsdorf, 10 November 2010 - freenet AG improved its profitability
in the first nine months of 2010 despite continued tough competition.
Recurring Group EBITDA (earnings before interest, taxes and
depreciation/amortisation) - adjusted for one-off items - for the
first three quarters of 2010 came to 268.9 million euros. freenet AG
confirms its guidance of 350 million euros in recurring Group EBITDA
for the financial year 2010, as issued in March 2010.

During the first nine months of 2010, freenet AG generated Group
third-party revenue in the amount of 2.49 billion euros, vs. 2.71
billion euros in the same period of 2009. The Group result for the
first three quarters of 2010 increased by 61.0 million euros to 73.0
million euros, compared with 12.0 million euros in the first nine
months of 2009.

At 21.6 percent for the first three quarters of 2010, the Group´s
gross profit margin was above the previous year´s nine-months figure
of 20.9 percent.

Group EBITDA for the first nine months of 2010 was 244.3 million
euros - up 7.8 percent on the previous year´s figure of 226.6 million
euros. This includes restructuring-related one-off items in the
amount of 24.6 million euros for the Group, against 45.6 million
euros in the first nine months of 2009. Recurring Group EBITDA -
adjusted for one-off items - came to 268.9 million euros for the
first three quarters of 2010, against 272.2 million euros for the
first nine months of 2009.

freenet AG increased its pre-tax earnings (EBT) by 60.5 million
euros, from 8.1 million euros for the first three quarters of 2009 to
currently 68.6 million euros.

In the first nine months of 2010, freenet AG generated 165.6 million
euros in cash flow from operating activities and reduced its net debt
by 112.0 million euros compared to year-end 2009, to currently 677.8
million euros.

The Mobile Communications segment contributed 2.43 billion euros, or
more than 97 percent, to total segment revenue in the first nine
months of 2010, primarily under the mobilcom-debitel brand. The
drivers behind the Mobile Communications revenue are first, the
planned and therefore expected 10.1 percent year-on-year decrease in
mobile communications customers to 15.84 million at the end of
September 2010 and second, the stabilisation of contract customer
ARPU (monthly average revenue per user) to 24.5 euros in the third
quarter of 2010, vs. 24.8 euros in Q3/2009.

Key financials of freenet Group
Accounting method: IAS/IFRS

Overview Group |Q1-Q3/2010|Q1-Q3/2009|Q3/2010|Q2/2010|Q3/2009
|adjusted* | |adjusted*
Result in EUR million
Third-party revenue |2,491.2 |2,709.5 |846.9 |838.2 |929.8
Gross profit |538.5 |565.8 |177.1 |195.5 |191.7
EBITDA |244.3 |226.6 |85.2 |88.2 |80.8
EBITDA recurring |268.9 |272.2 |95.7 |95.0 |98.8
EBIT |101.5 |75.3 |39.0 |39.3 |32.3
EBT |68.6 |8.1 |30.0 |28.7 |14.5
Group result from
continued operations |72.5 |4.7 |28.6 |28.9 |-11.3
Group result from
discontinued operations |0.4 |7.4 |0.0 |-5.3 |13.4
Group result |73.0 |12.0 |28.6 |23.6 |2.1

Overview Mobile Communications segment
|Q1-Q3/2010|Q1-Q3/2009|Q3/2010|Q2/2010|Q3/2009

Customer development in million
Mobile Communications

customers |15.84 |17.62 |15.84 |16.53 |17.62
Thereof contract customers
(excluding no-frills
customers) |6.37 |7.12 |6.37 |6.60 |7.12
Thereof prepaid customers |7.56 |9.16 |7.56 |8.08 |9.16
Thereof no-frills
customers** |1.91 |1.34 |1.91 |1.85 |1.34

Result in EUR million
Revenue |2,425.9 |2,601.6 |827.2 |815.9 |897.3
Gross profit |497.8 |516.7 |164.5 |182.1 |175.8
EBITDA |242.5 |224.7 |87.0 |85.9 |87.2
EBITDA-adjusted/recurring |264.0 |264.8 |95.8 |92.1 |101.2
EBIT |109.0 |86.2 |43.8 |40.2 |42.9
EBIT-adjusted/recurring |130.4 |126.3 |52.5 |46.3 |56.9

Monthly average revenue per user (ARPU) in EUR
Contract customer
(excluding no-frills) |23.8 |24.3 |24.5 |24.2 |24.8
Prepaid customer |3.1 |3.0 |3.4 |3.1 |3.2
No-frills customer** |5.1 |5.7 |5.5 |5.1 |6.0

* A 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
--------------------------------------------------------------------------------

ots Originaltext: freenet AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

freenet AG

Investor Relations

Tel.: +49 (0)40 513 06-778

E-Mail: ir@freenet.ag

Branche: Telecommunications
ISIN: DE000A0Z2ZZ5
WKN: A0Z2ZZ
Index: Midcap Market Index, TecDAX, CDAX, HDAX, Prime All Share,
Technology All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Hannover / free trade
München / free trade