D Telekom subsidiary T-Mobile USA to acquire SunCom Wireless for $1.6 billion

19 September 2007

Deutsche Telekom''s wholly owned mobile phone subsidiary T-Mobile USA will acquire SunCom Wireless Holdings Inc for an estimated $1.6 billion.

Mobile USA, Inc and SunCom Wireless Holdings, Inc. announced earlier on Monday 17 September having entered into a definitive merger agreement for the acquisition by T-Mobile USA of all of the outstanding shares of common stock of SunCom, for an aggregate of approximately $2.4 billion in cash and assumed debt. This includes cash payment of approximately $1.6 billion and $0.8 billion net debt.

Under the terms of the agreement, approved by the boards of both companies, holders of SunCom common stock will receive $27 per share in cash. Including net debt as of 30 June 2007, the total transaction value is approximately $2.4 billion. The $27 per share purchase price represents a premium of 22.7 per cent over the closing price of SunCom common stock on the New York Stock Exchange on Friday 14 September, the trading day prior to the signing of a definitive merger agreement.

The acquisition will further enhance T-Mobile''s network coverage in the southeastern United States and the Caribbean through the complementary addition of SunCom''s markets and customers in North Carolina, South Carolina, Tennessee, Georgia, Puerto Rico and the US Virgin Islands. SunCom operates a GSM/GPRS/EDGE network and has provided roaming service to T-Mobile in these markets since 2004.

Following the closing of the transaction, T-Mobile USA expects to fully integrate SunCom''s assets into the T-Mobile network. T-Mobile is committed to providing SunCom customers with a smooth transition to T-Mobile''s high-quality, innovative wireless services and products, such as its popular myFaves™ offering; its broad geographic reach on its highly regarded wireless network, and its industry-leading customer service.

"With the acquisition of SunCom, we will continue to implement our strategy to ''grow abroad with mobile'', which is part of our overall group strategy," said René Obermann, chairman of the board of management of Deutsche Telekom. "At the same time we can realise significant synergies on the cost side and improve our market presence. As a result, this acquisition will fit very well with our strategy to grow abroad with mobile primarily within our current footprint within the context of market consolidation."