ecotel communication ag: ecotel continues its profitable growth path

ecotel communication ag / Half Year Results

Düsseldorf, (PresseBox) - ecotel continues its profitable growth path in the second quarter and increases its revenues by 18% from EUR 22.0 million to EUR 26.0 million. In the first six months revenues grew by 24% from EUR 42.5 to EUR 52.9 million.

EBITDA was EUR 1.7 million and stayed on previous year level compared with the adjusted second quarter figures* of 2007. EBITDA for the first six months was EUR 3.4 million. EBIT in the second quarter was EUR 0.9 million and was on par level with the adjusted previous year results despite higher depreciation of intangible assets and 2007 investments. In the first six months EBIT was EUR 1.6 million. Earnings per share amounted to EUR 0.19 and EUR 0.26 adjusted for deferred taxes.

The equity ratio grew from 45% to 46% compared with the first quarter, cash amounts to more than EUR 4 million. The generated operating cash flow is used to pay back liabilities to banks and to finance the future growth. Net debt was therefore reduced by EUR 2 million to EUR 12.0 million since the beginning of this year. ecotel considers 2008 as the year of consolidation and new orientation. The company focuses on the integration of the acquired companies and plans to leverage the synergies. Beyond this ecotel expects to identify new growth potential in all business segments.

After solid first six months the prospects continue to be positive. The company expects to continue its revenue growth in the second year of 2008 and to reach its targets. The company expects to generate revenues of EUR 100 - 110 million and to generate an EBITDA adjusted for extraordinary cost and revenues of appr. EUR 7 million.

*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' costs at nacamar GmbH, which were readjusted only in the third quarter of 2007.

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 three 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.

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