DGAP-Adhoc

United Internet subsidiaries 1&1 Drillisch and 1&1 Versatel expanding cooperation with Deutsche Telekom; 1&1 Drillisch accepts Telefónica's improved national roaming offer; preliminary figures 2020 an - Seite 2

In addition to the existing access to FTTH connections of well-known city carriers, 1&1 Versatel thus gets initial access to approx. 750,000 additional FTTH connections. The number of marketable FTTH connections of Deutsche Telekom is expected to increase by an average of 2 million households per year in the coming years.

FTTH connections for private households enable bandwidths of up to 1Gbit/s. Households not yet equipped with FTTH will be supplied with VDSL connections (up to 250 Mbit/s).

Given the advantages of the new combined VDSL/FTTH agreement, the existing purely VDSL advance service agreement between 1&1 Drillisch and Deutsche Telekom will be terminated before maturity by mutual agreement of the parties. For 1&1 Drillisch, this will result in the write-off of accrued assets for VDSL contingents for existing customers still available until March 31, 2024, that must be written off in the amount of approx. EUR 130 million. The one-off write-off has no cash effect and will be clearly exceeded by the positive effects from the expanded cooperation with Deutsche Telekom in the long-run.

The new FTTH/VDSL agreement with Deutsche Telekom is subject to approval by the Federal Network Agency ("Bundesnetzagentur") as the competent regulatory authority.

Furthermore, 1&1 Drillisch has decided today to accept bindingly Telefónica Deutschland's offer - that was improved following review by the EU Commission - for national roaming and the related MBA MVNO advance services. The terms and conditions offered by Telefónica that will apply retroactively from July 2020 are to be based once again on the pricing mechanisms of the first five years of the MBA MVNO agreement. In particular, the offer again includes annually decreasing data prices, which are lower than the fixed prices currently charged by Telefónica.

The conclusion of an agreement, which Telefónica's offer expects until approx. mid-May 2021, would have a positive earnings effect for 1&1 Drillisch, and thus also for United Internet, of approx. EUR 34 million in the fiscal year 2020, which would be booked as an out-of-period return in the fiscal year 2021. In addition, this would constitute an essential prerequisite for 1&1 Drillisch's envisaged rollout of a high-performance 5G network.