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TDC Switzerland performed better than projected

Zurich, 27 February 2002 - TDC Switzerland performed better than projected in the outlook for 2001. Net revenues totaled CHF 1555m and EBITDA was CHF –15.4m.

Performance TDC Switzerland 2001

Since TDC achieved control of TDC Switzerland at the beginning of 2001, the management team has rapidly executed a transition and consolidation strategy. TDC Switzerland focused on reaping the synergy benefits from the merger while increasing the momentum in the market place. The outcome of this initiative is a company with an improved market position and a strong foundation for growth.

The synergy and cost-reduction programs included a reduction in the number of call centers and other offices as well as a reduction in other costs related to administration, marketing and network transmission. In addition, the staff was reduced 12% to approximately 2,200.

TDC Switzerland also launched an image campaign and increased its customer base while sunrise's mobile infrastructure was expanded significantly, bringing coverage on a par with the leading competitor in Switzerland.

As TDC Switzerland’s figures show how many people actually use sunrise services only those customers who regularly surf or make phone calls through sunrise are counted as sunrise customers. At the end of 2001, TDC Switzerland's controlled customer base comprised 944,000 mobile customers, up 62%, 499,000 Internet customers, up 25%, and 786,000 landline customers, up 15%. These figures only include active customers.

In November, TDC Switzerland launched ADSL, adding an important element to the total product portfolio. The offer resulted in a strong customer intake during November and December.