Telekomunikacja Polska selected operating and financial data 2Q 2008

Wednesday, July 30th, 2008
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The Management Board of Telekomunikacja Polska S.A. (TPSA, TP) (Warsaw: TPS) hereby provides selected financial and operating data related to the activities of TP Group for the six months ended June 30, 2008.

The Broadband market continued to enjoy strong momentum after aggressive price promotions in 2007 by alternative operators for the launch of their Bit-Stream Access (BSA)-based offers. According to the Group’s estimates, market value rose 19.4% with volume up 17.2% year-on-year despite slowdown of the household penetration rate at 36.2%, up only 5.0 percentage points year-on-year.

TP’s maintains leadership with a value market share of 49.7%. Broadband revenue growth (+15.3%) was driven by the year-on-year increase of the subscriber base, with almost stable retail ARPU thanks to the upgrade to higher bandwidth and the up selling of value-added services (TV-over-DSL, Video-on-Demand, Voice-Over-IP, triple play offers, new pay-TV packages). Livebox, being an enabler for these services, has increased its penetration among our retail subscriber to 21% from 15% a year ago. Quarter-on-quarter customer acquisition was temporarily impacted by the stabilisation period of the provisioning system which was migrated and integrated with the CRM at the end of the first quarter.

IPTV (videostrada tp) client base (000’s):

Q1 2007  Q2 2007  Q3 2007  Q4 2007  Q1 2008  Q2 2008
-------  -------  -------  -------  -------  -------
      9       19       23       40       49       54

On 24 July 2008 TP S.A., France Telecom SA and Orange Brand Services Limited (UK) (hereinafter referred to as “Orange”) concluded a license agreement, on which basis TP S.A. will acquire rights to use the ORANGE brand (trade marks) in relation to the provisioning of TV, ISP and B2B goods and services. The license fee for the use of ORANGE trade mark by TP S.A. will amount to 1.6% of the Company’s operating revenues earned under ORANGE brand. The agreement has been concluded for 10 years with the possibility of renewal.

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