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RNS Number:9567S
Koninklijke KPN NV
14 March 2002


KPN acquires full control over E-Plus
 
Royal KPN N.V. (AEX:KPN) successfully completed the acquisition of BellSouth's
(NYSE:BLS) 22.51% stake in the German Mobile operator E-Plus. 
Royal KPN now has full control of E-Plus, Germany's third largest mobile 
operator.

In exchange for its interest in E-Plus, BellSouth received 234.7 million newly
issued ordinary shares of Royal KPN representing a fair market value of Euro
1,253 million (based on the closing price on March 13 on Euronext Amsterdam). As
a result of the transaction BellSouth holds 9.42% of KPN's 2,491 million
outstanding shares. As previously announced BellSouth surrendered its existing
warrant on KPN shares, all of its rights regarding KPN Mobile and all of its
contingent rights pertaining to KPNQwest.

The newly acquired interest of 22.51% in E-Plus will be held directly by Royal
KPN. KPN Mobile holds the remaining 77.49%. As a result of the transaction and
consolidation of 100% of E-Plus, KPN's net consolidated debt will increase by
approximately Euro 930 million, based on Q3 2001 figures. The effect on
revenues (Jan-Sep 2001) would have been an increase of Euro 377 million (Euro
128 million in Q3 2001) and an increase of Euro 60 million (Euro 38 million in
Q3 2001) on Ebitda.

Royal KPN will announce its financial 2001 results on March 18, 2002, together
with a pro-forma statement incorporating the effect of this transaction, and
anticipates publishing the prospectus for the newly issued shares on the same
day. The exchange right as recorded on the balance sheet of KPN, as at 30
September, 2001 amounting to Euro 7.6 billion, will be valued at the fair market
value of Euro 712 million which will result in an incremental financial income
for 2001 of Euro 6,848 million.

Royal KPN also announces a write down of Euro 13.7 billion of goodwill on the
77.49% interest in E-Plus held by KPN Mobile. Including the effect of the
minority interest of NTT DoCoMo in KPN Mobile this will have a net effect on
Royal KPN's results of 2001 of Euro 12.4 billion, a figure larger than the
earlier indicated range of Euro 9.11 billion.

US GAAP requires that the effects of the above mentioned impairment are recorded
in fiscal year 2002.


About E-Plus

E-Plus was founded in 1993 and launched its DCS 1800 network in 1994. Royal KPN
N.V. announced the acquisition of a 77.49% stake in Germany's third largest
mobile operator in December 1999. BellSouth acquired options to convert its
22.51% stake into KPN Mobile or into Royal KPN NV. The customer base of E-Plus
increased from 3.5 million by the end of 1999 to 7.5 million by the end of 2001.
E-Plus is launching i-mode, the Japanese mobile data product developed by NTT
DoCoMo. NTT DoCoMo has meanwhile over 31 million i-mode clients. 

 
About Royal KPN and KPN Mobile

Royal KPN is a telecommunications company offering a wide range of high quality
and innovative telecommunications services for both the private and business
market. Its core business activities are: mobile communications; fixed network
and Internet services and IP/Data services. KPN focuses on the Benelux-countries
and Germany. 
KPN Mobile N.V. is an 85%-owned subsidiary of Royal KPN N.V. NTT DoCoMo Inc.,
KPN's strategic partner, owns the remaining 15%. KPN Mobile is currently active
with its own network operators in Germany (E-Plus), the Netherlands and Belgium
(KPN Orange), where more than 8,000 employees serve some 13.7 million customers
as of the end of December 2001.


About BellSouth Corporation

BellSouth Corporation is a Fortune 100 communications services company
headquartered in Atlanta, GA, serving more than 45 million customers in the
United States and 15 other countries.

Consistently recognized for customer satisfaction, BellSouth provides a full
array of broadband data and e-commerce solutions to business customers,
including Web hosting and other Internet services. In the residential market,
BellSouth offers DSL high-speed Internet access, advanced voice features and
other services. BellSouth also provides online and directory advertising
services, including BellSouth Real Pages (SM).com.

BellSouth owns 40 percent of Cingular Wireless, the nation's second largest
wireless company, which provides innovative wireless data and voice services.   
            


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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