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(in EUR million - year ended 31 December) 2003 2004 2005

A. Profit to be appropriated 5,086 532 392

Loss to be appropriated 0 0 0

B. Transfers from capital and reserves 0 196 162

C. Transfers to capital and reserves -4,664 -21 -16

glossary

ADSL

(Asymmetric Digital Subscriber Line): Technology which allows a high-speed, point-to-point digital connection over a copper pair.

ADSL2+

An advanced version of ADSL, which allows a bandwidth of up to 15Mbps.

ARPU

(Average Revenue Per Unit): An indicator for determining a customer’s profitability.

ATM

(Asynchronous Transfer Mode): A technique

enabling the high-speed transfer of digital data. It consists of dividing information flow (voice, data and image) into fixed-size packets, known as “cells”.

BACKBONE

This is a high bandwidth line which acts as the mainstay linking access providers to the world network.

BILAN

(Belgacom Interconnection of LAN): A total telecom solution based on the Internet Protocol (IP), Frame Relay and ATM networks.

BROADBAND

A high bandwidth network capable of

transmitting large data flows. These networks are composed of a copper pair, optic fiber or wireless media.

CDMA

(Code Division Multiple Access): A digital tech- nique in which different conversations can be transmitted simultaneously and are differenti- ated by being tagged with a code.

DVB-T

(Digital Video Broadcasting - Terrestrial): Standard for the broadcast (signal transmission) of digital television via radio waves.

EPG

(Electronic Program Guide): Standard enabling the broadcasting, in teletext mode, of scheduled television programs in the form of an on-screen interactive guide.

EXTRANET

An intranet which can be accessed remotely by a company’s suppliers, customers and partners via a secure solution.

FRAME RELAY

Data transmission protocol that divides a physical communications line into several virtual channels. Technology part-way between X25 packet switching and ATM.

GPRS

(General Packet Radio Service): A second-genera- tion mobile telephony standard. It enables direct Internet access and data exchange at speeds 18 times faster than those of the GSM protocol and allows volume-based pricing.

GSM

(Global System for Mobile Communications): An abbreviation which is often synonymous, in common parlance, with the mobile telephone or terminal. In reality, it is a European standard for a common digital cellular telephony system.

HDTV

(High Definition Television): High-resolution tele-

vision, a sound and image quality standard which is still in development.

INTRANET

Application of Internet technologies (e-mail, Web, etc.) to a company’s local area network (LAN).

IP

(Internet Protocol): A protocol for transmitting

data packets, used for routing and transporting messages via the Internet.

IP VPN

(IP Virtual Private Network): A VPN offers the advantages of a private network (security, etc.) while using public infrastructures. The user thereby saves on network management and infrastructure costs.

ISDN

(Integrated Services Digital Network): A fully digitized fibre-optic network enabling simulta-

neous, high-speed transmission of voice, text, data and images (still or animated). There are two types of ISDN lines: ISDN-2, equipped with two communication channels, and ISDN-30, equipped with thirty communication channels.

ISP

(Internet Service Provider): An organization that

offers a connection to the Internet computer network.

MMS

(Multimedia Messaging Service): A technology for illustrating text messages (displayed on a mobile telephone) with photos, video and/or audio clips.

MPEG-2/MPEG-4

(Moving Picture Experts Group): Standard for video compression. MPEG-4, which is more powerful (delivers the same quality as MPEG-2 with smaller packets of data), is the standard of the future for digital television applications.

PABX

(Private Automatic Branch Exchange): A company

exchange around which the company’s internal telephone network is organized. It also enables data transmission.

SDSL

(Symmetric Digital Subscriber Line): SDSL trans- ports data at speeds of up to 2.3 Mbps, both upstream and downstream.

STREAMING

A technique for downloading multimedia files enabling surfers to read the file in real-time, without waiting for full download. This is the case, for example, with sound or video on the Internet.

TCP-IP

(Transmission Control Protocol - Internet Protocol): Protocol used in conjunction with Internet Protocol (IP) to transmit data in billing units (datagrams or packets) between computers via the Internet. IP processes the actual delivery of data, whereas TCP ensures the follow-up of individual units of data to ensure they are routed efficiently over the Internet.

TNT

(Télévision Numérique Terrestre): Terrestrial digital television uses conventional radio recep- tion antenna to receive data packets.

UMTS

(Universal Mobile Telecommunication System): A third-generation telecommunications system capable of providing multimedia services at a very high speed.

VDSL

(Very High Rate Digital Subscriber Line): An advanced version of ADSL, which allows a band- width of up to 20Mbps.

VIDEO

A communication in which the callers can be

TELEPHONY

seen as well as heard (video conference).

VOD

(Video On Demand): An interactive video system, with the same functionalities as a VCR, which allows users to order films or television programs remotely and against payment.

VPN

(Virtual Private Network): A private network whose architecture is based on the use of the TCP-IP protocol.

WAP

(Wireless Application Protocol): A new protocol enabling GSMs to be transformed into Internet and multimedia terminals.

WDM

([Dense] Wavelength Division Multiplexing): A technique enabling several independent flows of digital information to coexist on the same optical fiber.

WIFI

WiFi stands for wireless fidelity. WiFi technology enables short-range, wireless, high-speed surfing via a hotspot.

Disclaimer

This communication contains forward-looking statements, including statements about the Company’s beliefs and expectations. These statements are based on the Company’ s current plans, estimates and projections, as well as its expectations of external conditions and events. Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. The Company undertakes no duty to and will not necessarily update any of them in light of new information or future events, except to the extent required by Belgian law. The Company cautions investors that a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements.

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