History of share issues (1)

Deutsche Telekom used innovative approaches for its first share issue (DT1), such as letting private investors buy shares at a reduced rate, and providing free information via the T-Forum TV program.

November 18, 1996, marked the beginning of a new era for Deutsche Telekom. The transition of the German Deutsche Bundespost Telekom (German Federal telecommunication and postal service) to the initially state-owned stock company Deutsche Telekom had taken place at the beginning of 1995 and now the stock market launch followed, opening up the company to the capital trading market. The initial public offering of about 713.7 million shares enabled Deutsche Telekom AG to follow its goals of improving its shareholders' equity structure as well as demonstrating the importance and strength of the German financial marketplace.

Deutsche Telekom's initial public offering demonstrated its innovative stock market launch concept by initiating a Share -Information Forum (AIF) in Germany and thereby giving as many retail investors as possible the chance to be a part of share investment with its opportunities and risks, and producing a wide forum for the marketing of the T-Share. The AIF forum maintained its role even after the completion of this initial public share offering under the name "Forum T-Share" and is now an investor relations facility within Deutsche Telekom for its German-speaking retail investors. "Forum T-Share" provides these investors with a broad spectrum of information about shares, the Deutsche Telekom Group and the share offering for retail investors within the DT1 stock market launch - all free of charge. In addition to this, a widespread media campaign informed retail investors about special incentives for them such as reduced issue prices and bonus shares.

The share offer was oversubscribed five times even after this tranche was increased to 600 million shares as well as 90 million reserve shares, the so-called Greenshoe. A total of 713.7 million shares were released including about 23 million share certificates for company employees.

The official issue price for the T-Share was 14.57 euros (i.e. 18.89 U.S. dollars or 2140 Japanese yen). Retail investors in Germany, who complied with issue and transfer conditions, were able to purchase the T-Share at the reduced rate of 14.32 euros as well as receiving bonus shares from the incentive program.

This incentive package - including extensive information and marketing measures, reduced purchase price and bonus shares for retail investors, guaranteed the resounding success of Deutsche Telekom's stock market launch. For 650,000 retail investors it was their first-ever investment in the stock market. Deutsche Telekom generated about 10 billion euros from this capital increase.