Investments accounted for using the equity method.

Significant investments in entities accounted for using the equity method are as follows: Dec. 31, 2008 Dec. 31, 2007 a Name Deutsche Telekom share % Net carrying amount millions of € Deutsche Telekom share % Net carrying amount millions of € Hellenic Telecommunications Organization S.A. (OTE) b _30.00 e _{3,407 n.a. –}

HT Mostar c, d _{39.10 49 39.10 47}

Toll Collect c _{45.00 39 45.00 9}

Iowa Wireless Services LCC 39.74 14 39.74 10

CTDI Nethouse Services GmbH 49.00 12 49.00 9

DETECON AL SAUDIA CO. Ltd. 46.50 7 46.50 9

SEARCHTEQ GmbH (formerly t-info) 25.10 – 25.10 2

Other 29 32

3,557 118

a _{Prior-year figures adjusted. Accounting change in accordance with IFRIC 12. For explanations, please refer to “Summary of accounting policies/Change in accounting policies.”} b _{Fair value (share value): EUR 1,750 million.}

c _{Joint venture.}

d _{Indirect shareholding via HT-Hrvatske telekomunikacije d.d., Croatia (Deutsche Telekom AG’s share: 51.00 %).} e _{Including the shares of the first put option.}

On May 16, 2008, Deutsche Telekom acquired just under 20 percent of the shares in Hellenic Telecommunications Organization S.A., Athens, Greece (OTE) from Marfin Investment Group at a price of EUR 2.6 billion. On May 14, 2008, Deutsche Telekom also entered into a shareholders’ agreement with the Hellenic Republic providing for an increase in this holding to 25 percent plus one vote and granting Deutsche Telekom the possibility of controlling OTE’s financial and operating policies (as defined by IAS 27) following the completion of all necessary steps of the transaction.

To this end, Deutsche Telekom and the Hellenic Republic entered into a share purchase agreement on May 14, 2008 for the acquisition of an additional 3 percent of the shares at a price of EUR 0.4 billion. Under the share purchase agreement, Deutsche Telekom has additionally granted the Hellenic Republic two put options for an additional 5 percent (first put option) and 10 percent (second put option) of the shares. The first put option can be exercised by the Hellenic Republic at a total price of EUR 0.7 billion for a period of twelve months beginning in October 2008 at the earliest or upon execution of the share purchase agreement. Subsequently, the second put option can be exercised at market price plus a premium initially of 20 percent for a period of twelve months, after which it can be exercised at market price plus a premium of 15 percent until December 31, 2011. The second put option also includes shares which were not sold to Deutsche Telekom during the term of the first option. The consummation of the shareholders’ agreement and the share purchase agreement was also contingent upon the acquisition of an additional 2 percent of the shares in OTE by Deutsche Telekom from the market, which was executed on July 17, 2008 at a total value of EUR 0.1 billion.

The figures for the OTE group are based on the most recent interim financial statements as of September 30, 2008 and the most recent consolidated financial statements as of December 31, 2007. Net revenue and profit/loss relate to the 12-month period prior to the interim financial statements and the 2007 financial year.

billions of € Sept. 30, 2008 Dec. 31, 2007 Total assets 11.2 11.5 Total liabilities 9.0 8.5 10/2007– 9/2008 2007 Net revenue 6.4 6.3 Profit/loss 0.7 0.8

The following table is a summary presentation of aggregated key financial figures – pro-rated according to the relevant percentage of shares held – for the joint ventures of Deutsche Telekom accounted for using the equity method:

Aggregated key financial figures for the joint ventures accounted for using the equity method.

billions of € Dec. 31, 2008 Dec. 31, 2007 * Total assets 0.5 0.5 Current 0.3 0.3 Non-current 0.2 0.2 Total liabilities 0.4 0.4 Current 0.4 0.2 Non-current 0.0 0.2 2008 2007 * Net revenue 0.2 0.2 Profit/loss 0.0 0.0

* Prior-year figures adjusted. Accounting change in accordance with IFRIC 12. For explanations, please refer to “Summary of accounting policies/Change in accounting policies.”

The share purchase agreement became legally valid following full approval given by the responsible national and international supervisory authorities by the beginning of November 2008. Consequently, Deutsche Telekom acquired an additional 3 percent of OTE’s shares from the Hellenic Republic on November 5, 2008, thus effecting the legal validity of the shareholders’ agreement. Deutsche Telekom holds a stake in OTE of 25 percent plus one vote as a result of the aforementioned transactions.

Furthermore, Deutsche Telekom has assumed present ownership of the shares of the first put option after the share purchase agreement became effective, i.e., it recognized the agreed purchase price of EUR 0.7 billion as costs for the acquisition of an additional 5-percent share. The changes to OTE’s Articles of Incorporation necessary for full implementation of the shareholders’ agreement were approved at the extraordinary shareholders’ meeting of OTE on February 6, 2009. It cannot be ruled out that this resolution by the shareholders may be declared invalid by a court, in the event that other shareholders successfully file rescission suit against this resolution.

Following the developments in the economy overall during the fourth quarter of 2008 and the associated increase in the volatility of the discount rates, Deutsche Telekom tested the OTE investment for impairment at the end of the year. This test resulted in Deutsche Telekom recognizing an impairment loss of EUR 0.5 billion on the carrying amount of OTE. The impairment of the investment is attributable to an increase in discount rates. Aggregated key financial figures for the associates accounted for using the equity method are shown in the following overview. The data is not based on the portions attributable to the Deutsche Telekom Group, but represents the shareholdings on a 100-percent basis. This table does not include figures for OTE, since OTE as a listed company had not yet published its financial statements as of December 31, 2008 when Deutsche Telekom’s consolidated financial statements were prepared.

Aggregated key financial figures for the associates accounted for using the equity method.

billions of € Dec. 31, 2008 Dec. 31, 2007 Total assets 0.3 0.5 Total liabilities 0.2 0.2 2008 2007 Net revenue 0.4 0.4 Profit/loss 0.0 0.0

154 | 155

Consolidated financial statements Notes