ecotel: first visible results of full access product sales

Stabilization of gross profit in the B2B segment / Order backlog of more than 7,500 full access lines / Reduction of net debt to € 6.5 million

Düsseldorf, (PresseBox) - ecotel achieved revenues of € 72.6 million (LY: € 72.5 million) in the first nine months of 2010, which are € 4.7 million (7%) above the previous year figures adjusted for the deconsolidation of PPRO GmbH. Revenues in the third quarter of 2010 were € 24.6 million and stable compared with the previous quarter. The revenue increase in the first nine months is mainly due to new revenues in the wholesale segment and new revenues of the subsidiary easybell in the New Business segment. Revenues in the B2B segment were declining due to the loss of traditional preselect revenues.

Meanwhile, we see a stabilization of gross profit in this segment. At the end of the third quarter ecotel had an order backlog of 7,500 full access lines with 3,600 active lines. Until year end ecotel expects a doubling of active full access lines.

EBITDA in the third quarter was € 1.0 million and was € 0.2 million lower than the EBITDA in the second quarter and stayed € 0.3 million below previous year figures.

The temporary reduction of EBITDA is due to non recurring expenses. The cumulated EBITDA for the nine six months of 2010 was € 3.2 million (LY: € 3.8 million). EBIT in the third quarter was € 0.2 million (LY: € 0.3 million). Net income for the first nine months was € 0.1 million, which corresponds to earnings per share of € 0.03 Net debt was reduced to € 6.5 million.

In line with the current business development ecotel maintains its guidance for the current business year with revenues of more than € 95 million and EBITDA of more than € 4 million. Furthermore, ecotel expects a turnaround in the B2B segment in the fourth quarter of 2010.

The quarterly report can be downloaded from the company's website at

Ecotel Communication AG

ecotel communication ag is a publicly listed telecommunications company at the Frankfurt Stock Exchange (Prime Standard), 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 to appr. 30,000 business customers. This business segment comprises the B2B activities of ecotel, as well the B2B activities of nacamar GmbH, which have been merged into ecotel.

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". This business segment comprises the wholesale activities of ecotel as well as all of i-cube GmbH and mvneco GmbH.

The division "New Business" contains ecotel's fast growing subsidiaries and new ventures. Apart from easybell GmbH, this division also comprises the New Media business of nacamar GmbH.

ecotel is headquartered in Düsseldorf and has at present appr. 210 employees.

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