KDG re-emphazises commitment to invest Euro 1.8bn to address Cartel Office concerns

Unterfoehring (ots) - In meetings with the German Cartel Office, Kabel Deutschland GmbH (KDG), Germany's largest cable operator, has re-confirmed its package of remedies with respect to the Federal Cartel Office's Statement of Objections issued August 24, 2004, including its commitment to upgrade 50% of homes passed on net level 3 nation-wide for high-speed internet within 3 years, on the basis of a business plan foreseeing total investments in the amount of Euro 1.8bn over the next ten years.

KDG is disappointed by the FCO's continued negative stance toward the intended mergers between Kabel Deutschland and the three regional operators ish, iesy and Kabel Baden-Wuerttemberg. KDG has offered a compre-hensive package that addresses each and every concern. Furthermore, KDG believes that its proposals will create growth and innovation in the German TV market, add choice for consumers and drive competition in the Internet market that is largely controlled by one dominant player. Also, in-vestment plans offered by KDG will provide stimulus for growth and jobs in Germany. The formal approval process runs to October 7, 2004.

In the event that the transactions should be formally blocked on October, KDG would continue to develop its existing business which operates in 13 German states. With a healthy financial profile, approximately 10 mio cus-tomers and 2,300 employees, KDG will continue to drive innovation as it has done since acquiring the business in March 2003 .

Kabel Deutschland

Kabel Deutschland is the largest cable network operator in Europe, connecting almost 10 million households in thirteen German states. KDG owns and operates the network infrastructure, is responsible for the marketing of cable access, as well as other related services, and develops new digital TV and high-speed internet services. The company's digital TV service provides a platform that is open to all content providers. In 2003, KDG was acquired from Deutsche Telekom by a consortium of financial investors comprised of Apax Partners, Providence Equity Partners and Goldman Sachs Capital Partners.


Kabel Deutschland GmbH

Corporate Communication

Betastr. 6-8

85774 Unterfoehring


Roland Klein: +49 89 / 960 10 - 151

Stefan Schott: +49 89 / 960 10 - 153

e-Mail: kerstin.reichersporner@kabeldeutschland.de