Highlights in the 2010 financial year.

Board of Management develops Group strategy further. As part of our enhanced Fix – Transform – Innovate strategy, we are aiming to refocus our business with investments in intelligent networks and with IT, Internet, and network services. Our aim is to drive up revenues in growth areas. For more information about the further development of our strategy, please refer to the section “Group strategy and Group management.”

New five-year contract for René Obermann. At its meeting on December 16, 2010, the Supervisory Board of Deutsche Telekom AG resolved ahead of time to extend René Obermann’s contract as Chairman of our Board of Management by five years. His current contract expires on October 31, 2011. The new contract will run until the end of October 2016.

Edward R. Kozel appointed to the Board of Management of Deutsche Telekom AG. At its meeting on May 2, 2010, the Supervisory Board appointed Edward R. Kozel as a new member of Deutsche Telekom AG’s Board of Management effective May 3, 2010. As member of the Board of Management for Technology and Innovation/Chief Technology and Innovation Officer (CTIO), he is responsible for Technology, IT, Procurement, and Products & Innovation for standard business (consumers and business customers).

Changes in management at T-Mobile USA and OTE. Philipp Humm succeeded Robert Dotson as CEO of T-Mobile USA effective November 1, 2010. Robert Dotson remains with the company as Vice Chairman. Michael Tsamaz was appointed successor to Panagis Vourloumis as Chairman and Chief Executive Officer (CEO) of OTE effective November 3, 2010. Panagis Vourloumis left the company effective the same date. Michael Tsamaz will also continue as CEO of Cosmote Mobile Communications.

Shareholder remuneration policy* for the 2010 to 2012 financial years approved. The Board of Management and Supervisory Board have decided to pursue a shareholder remuneration policy for the 2010 to 2012 financial years, consisting of an annual dividend of at least EUR 0.70 per share and the buy-back of the Company’s own shares with the remaining amount, up to a total shareholder remuneration of around EUR 3.4 billion. This policy is subject to the requisite unappropriated net income being posted in the annual financial statements of Deutsche Telekom AG for the financial year in question and the ability to form the necessary reserves for the share buy-back. It is also contingent upon the executive bodies adopting resolutions to this effect taking account of the Company’s situation at the time.

Share buy-back and capital decrease completed in 2010. Deutsche Telekom AG purchased shares for a total price of EUR 400 million (excluding transaction costs) in 2010. The Company then retired the approximately 40 million shares purchased and reduced Deutsche Telekom AG’s share capital accordingly by EUR 102 million. For more information, please refer to the notes to the consolidated financial statements.

Deutsche Telekom included in Dow Jones Sustainability Index (DJSI) again. In 2010, we again qualified for the Dow Jones Sustainability Index World and Dow Jones Sustainability Index Europe, the most renowned sustainability indexes.

Everything Everywhere joint venture successfully established in the United Kingdom. On April 1, 2010, together with France Télécom S.A., we merged T-Mobile UK and Orange UK to create a joint venture called Everything Everywhere in which the two shareholders hold equal shares of 50 percent. Following the establishment of the joint venture, the assets and liabilities of T-Mobile UK have no longer been shown in the consolidated statement of financial position since April 1, 2010. Also T-Mobile UK’s income statement has no longer been included in the consolidated income statement since the same date. Instead, the joint venture is included in the consolidated statement of financial position under investments accounted for using the equity method, while the share in the joint venture’s profit/loss is reported in the consolidated income statement under profit/loss from financial activities.