ecotel communication ag — Earnings Release 2008

Nov 12, 2008

News Details

Corporate | 12 November 2008 09:30

ecotel communication ag: ecotel maintains its profitable growth path

ecotel communication ag / Quarter Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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* Confirms revenue guidance of € 100-110 million for 2008
* 2008 results affected by one time effects

Düsseldorf, November 12, 2008
ecotel continues its profitable growth path in the third quarter on a
reduced scope and increased its revenues by 4% from € 25.1 million to €
26.2 million. In the first nine months revenues grew by 17% from € 67.7 to
€ 79.1 million.

EBITDA was € 1.4 million and stayed € 0.3 million below the previous year
level compared with the adjusted third quarter figures* of 2007. The main
reason for the profit decline compared with the previous year figures is
due to seasonal B2B fluctuations and temporarily higher procurement cost.
EBITDA for the first nine months was € 4.8 million and stayed on previous
year level compared with the adjusted figures of 2007.

EBIT in the third quarter 2008 was € 0.5 million and stayed € 0.2 million
below the previous year level compared with the adjusted third quarter
figures* of 2007. In the first nine months EBIT was € 2.2 million, net
income was € 0.9 million and earnings per share amounted to € 0.22 and €
0.30 adjusted for deferred taxes.

ecotel considers 2008 as the year of consolidation and new orientation. The
company focuses on the integration of the acquired companies in order to
leverage the synergies. Therefore the company is currently centralizing the
corporate functions of nacamar and ADTG into the headquarters in
Düsseldorf. Beyond this ecotel expects to identify new growth potential in
all business segments. In the forth quarter ecotel is also benefiting from
purchasing cost cuts which have successfully been renegotiated with our
suppliers in the third quarter.

Based on the improved procurement cost and the resulting higher gross
profits ecotel maintains its guidance for 2008. The company expects to
generate revenues of € 100 – 110 million and to generate an EBITDA adjusted
for extraordinary cost and revenues of appr. € 7 million.

In order to improve its market share in the B2B segment ecotel is planning
increased sales activities for mobile services, VPN Ethernet and local loop
unbundling (LLU). Beyond this we expect further business growth in the
wholesale and new business segment. For 2009 we expect an adjusted EBITDA
of at least the amount of EBITDA as in 2008.

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* A comparison with the previous year figures is of limited value due to
the fact that the 2007 figures contain significant one time revenues. In
addition, the quarterly and first half financial figures of 2007 included
insufficient provisions for 'unexpected' cost at nacamar GmbH, which were
readjusted only in the third quarter of 2007.

About ecotel communication ag:

ecotel is a telecommunications company which operates in Germany and
focuses on three business divisions.

In its core division 'Business Customers' the company offers an integrated
product portfolio of voice, data and mobile services. ecotel meanwhile
provides more than 45.000 business customers within Germany with
standardised and individual telecommunications solutions and consistently
pushes its fixed mobile convergence (FMC) strategy.

In its second division 'Wholesale Customers' the company provides carrier
and wholesale services to other telecoms operators and to non-industry
distributors. ecotel deploys state of the art enabling and switching
platforms in order to provide its product portfolio (unbundled local loops,
broadband access lines, mobile services) to other resellers. At the same
time the company achieves economics of scale and broadens its value chain
for its own core business 'business customers'.

The division 'New Business' contains ecotel’s fast growing subsidiaries and
new ventures. Apart from PPRO, easybell, ecotel private and toBEmobile this
division also includes nacamar’s New Media business, which has been
transferred into this unit.

ecotel was founded in 1998 and is headquartered in Düsseldorf. At present,
the group has 220 employees. It is among the fastest growing technology
companies and was ranked among the top 50 companies in the Deloitte
'Technology Fast 50' competition for the past four consecutive years.

Please note:

This publication does not constitute an offer for the sale of shares in the
company or a solicitation of an offer for the purchase of shares in the
company. Furthermore this publication shall not constitute a securities
prospectus. This document must not be distributed outside of Germany, in
particular not in the United States of America, Canada, Australia or Japan.

Press contact:

ecotel communication ag

Wirtschafts- und Finanzmedien
Annette Drescher (Assistentin des Vorstandes)
Tel.: 0211-55 007-740
Fax: 0211-55 007 5 740
Email: presse@ecotel.de

Fachmedien
Alexandra Rath (Leitung Marketing/ PR)
Tel.: 0211-55 007-310
Fax: 0211-55 007 5 310
Email: presse@ecotel.de

Further information: www.ecotel.de.

12.11.2008 Financial News transmitted by DGAP

Language: English
Issuer: ecotel communication ag
Prinzenallee 9-11
40549 Düsseldorf
Deutschland
Phone: +49 (0)211 55 00 70
Fax: +49 (0)211 55 00 7 222
E-mail: info@ecotel.de
Internet: http://www.ecotel.de
ISIN: DE0005854343
WKN: 585434
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Düsseldorf

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