KDG re-emphazises commitment to invest Euro 1.8bn to address Cartel Office concerns

UNTERFOEHRING (Germany) 8th September (ots/PROTEXT) - Inmeetings with the German Cartel Office, Kabel Deutschland GmbH(KDG), Germany's largest cable operator, has re-confirmed itspackage of remedies with respect to the Federal Cartel Office'sStatement of Objections issued August 24, 2004, including itscommitment to upgrade 50% of homes passed on net level 3 nation-wide for high-speed internet within 3 years, on the basis of abusiness plan foreseeing total investments in the amount of Euro1.8bn over the next ten years.

KDG is disappointed by the FCO's continued negative stancetoward the intended mergers between Kabel Deutschland and thethree regional operators ish, iesy and Kabel Baden-Wuerttemberg.KDG has offered a compre-hensive package that addresses each andevery concern. Furthermore, KDG believes that its proposals willcreate growth and innovation in the German TV market, add choicefor consumers and drive competition in the Internet market thatis largely controlled by one dominant player. Also, in-vestmentplans offered by KDG will provide stimulus for growth and jobsin Germany. The formal approval process runs to October 7, 2004.

In the event that the transactions should be formally blockedon October, KDG would continue to develop its existing businesswhich operates in 13 German states. With a healthy financialprofile, approximately 10 mio cus-tomers and 2,300 employees,KDG will continue to drive innovation as it has done sinceacquiring the business in March 2003.

Kabel Deutschland

Kabel Deutschland is the largest cable network operator inEurope, connecting almost 10 million households in thirteenGerman states. KDG owns and operates the network infrastructure,is responsible for the marketing of cable access, as well asother related services, and develops new digital TV and high-speed internet services. The company's digital TV serviceprovides a platform that is open to all content providers. In2003, KDG was acquired from Deutsche Telekom by a consortium offinancial investors comprised of Apax Partners, ProvidenceEquity Partners and Goldman Sachs Capital Partners.

Contact: Kabel Deutschland GmbH Corporate CommunicationBetastr. 6-8 85774 Unterfoehring Germany

Roland Klein: +49 89 / 960 10 - 151 Stefan Schott: +49 89 /960 10 - 153 e-Mail: kerstin.reichersporner@kabeldeutschland.de

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