euro adhoc: freenet.de AG / quarterly or semiannual financial statement / freenet Q3/06 figures: significant DSL growth and solid results

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
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08.11.2006

• Over 551 million euro in revenue for the 9 month period (+ 8% vs.
same period 2005) • All earnings metrics up versus prior quarter •
75,000 new DSL customers in third quarter • Target announced of 1
million DSL customers by yearend

Hamburg/freenet.de AG - freenet.de AG remains on track for growth in
a highly competitive market environment. The third quarter of 2006
and the month of September in particular were impacted by the
successful market launch of the new freenetDSL product
"freenetKomplett", showing extremely positive trends. The number of
freenet DSL customers (Deutsche Telekom infrastructure and direct
line) rose to 905,000 total as of the end of the third quarter. DSL
picked up 75,000 net new customers in the third quarter as compared
to 55,000 for the previous quarter. "We see further growth ahead for
the fourth quarter and are shooting for 1 million DSL customers by
the end of the year", commented Eckhard Spoerr, CEO of freenet.de AG.
freenet DSL profitability also improved, a main reason being a
changed contract model with Deutsche Telekom AG. Third quarter
revenues fell as bonuses for new customer recruitment were eliminated
with these changes, while gross margins increased in parallel over
the entire contract lifetime, thus improving freenet's long-term
profitability outlook.

In the first nine months of the current year, revenues increased by
over 41 million euros or eight percent year on year, to 551.4 million
euros; 167.9 million euros were generated in the third quarter. The
decline versus the previous and last year's same quarter (183.5
million euro and 185.7 euro million respectively) may be attributed
in addition to the impact of the changed contract model with Deutsche
Telekom AG, more restrained internet usage during the warm summer
months. "Increasing revenues can be expected in the traditionally
strong fourth quarter", said Spoerr.

freenet has been improving its profitability over the course of 2006,
posting higher quarterly earnings across the board for Q3 2006:
EBITDA margin expanded from 10.9 percent in Q2 quarter 2006 to 13.2
percent in Q3 2006. EBITDA was up 11 percent versus Q2/2006 (20
million euro) at 22.1 million euro. Pre-tax earnings (EBT) picked up
more sharply to 16.1 million euro, up 31 percent versus Q2/2006 (12.3
million euro). Group result rose from 7.2 million euro in the second
quarter of 2006 to 10.4 million euro in the third quarter, up 44
percent.

Cash and cash equivalents rose again in the 3rd quarter by 11.3
million euro to 186.1 million euro.

The first nine months of 2006 at a glance

|Financial data per IFRS; |Q3/2006 |Q2/2006 |Q3/2005 |Q1-Q3 2006|Q1-Q3 2005|
|in TEUR /Source: | | | | | |
|freenet.de AG | | | | | |
|Revenues |167,874 |183,450 |185,656 |551,392 |510,191 |
|Segment: Internet access | 79,468 | 90,868 | 82,173 |268,363 |246,236 |
|Segment: Voice | 30,204 | 34,822 | 39,276 |102,610 |118,899 |
|Segment: Portal business | 27,549 | 29,281 | 26,079 | 84,922 | 70,249 |
|Segment: B2B services | 30,653 | 28,479 | 38,128 | 95,497 | 74,807 |
|Gross profit | 67,770 | 67,383 | 78,267 |209,218 |229,736 |
|EBITDA | 22,103 | 19,998 | 20,323 | 69,568 | 88,061 |
|EBITDA (adjusted)* | | | 32,007 | | 99,745 |
|Earnings before | | | | | |
|taxes (EBT) | 16,131 | 12,305 | 12,190 | 48,467 | 60,592 |
|Earnings before | | | | | |
|taxes(EBT)(adjusted)* | | | 23,874 | | 72,276 |
|Group result | 10,425 | 7,190 | 7,491 | 29,711 | 37,410 |
|Cash and cash equivalents |186,125 |174,816 |134,962 |186,125 |134,962 |
* adjusted for merger-related non-recurring expenses totaling 11.7 million euro.
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end of announcement euro adhoc 08.11.2006 08:01:00
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ots Originaltext: freenet.de AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Andreas Neumann
Investor Relations
Tel.: +49 (0)40 51306 778
E-Mail: IR@freenet-ag.de

Branche: Online
ISIN: DE0005792006
WKN: 579200
Index: TecDAX, CDAX, Prime All Share, HDAX, Technologie All Share,
Midcap Market Index
Börsen: Frankfurter Wertpapierbörse / regulated dealing/prime
standard
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