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08.11.2007 – 20:41

United Internet AG

Record figures again for United Internet Earnings per share up 36%

Montabaur (euro adhoc) -

  ots.CorporateNews transmitted by euro adhoc. The issuer is responsible for
  the content of this announcement.
Montabaur, November 8, 2007. The first 9
months of 2007 have been very successful for United Internet. The 
company succeeded in lifting sales and earnings to new record heights
while strengthening its position as a highly profitable Internet 
Service Provider. Earnings per share (EPS) rose by 36%.
Consolidated sales of United Internet AG achieved year-on-year growth
of 27.1% to EUR 1,073.1 million (comparable prior-year figure after 
deconsolidation and completed sale of twenty4help: EUR 844.4 
million). Earnings before interest, taxes, depreciation and 
amortization (EBITDA) grew by 32.9% from EUR 177.2 million 
(comparable prior-year figure) to EUR 235.5 million. Earnings before 
taxes (EBT) of the United Internet Group improved by 29.6% from EUR 
140.4 million (comparable prior-year figure) to EUR 182.0 million. 
These earnings figures include a non-recurring net positive effect 
from the Online Marketing segment in the second quarter of 2007 of 
EUR 16.8 million in EBITDA and of EUR 7.4 million in EBT. Earnings 
per share (EPS) climbed 117.1% from EUR 0.35 (split-adjusted 
prior-year figure, including EUR 0.02 from discontinued operations) 
to EUR 0.76, of which EUR 0.28 was from discontinued operations and 
EUR 0.03 from positive one-off effects. Adjusted for these items, EPS
rose by 36.4% from EUR 0.33 last year to EUR 0.45 in the first 9 
months of 2007.
"We are very satisfied with the development of business," says Ralph 
Dommermuth, CEO of United Internet AG. "Our company continues to make
strong progress. We were able to reach new record levels of sales and
earnings and post the best figures in the company's history - in 
spite of high investments to acquire new customers. The dynamic 
growth of our Product business continues to be rooted in the stable 
rise in paid subscriptions. As of September 30, 2007 we had a total 
of 7.07 million customer contracts. This represents strong growth in 
all product lines over the last 12 months with a net addition of 1.02
million new contracts."
"One of the key growth drivers is our non-German webhosting business.
In this area alone, we achieved year-on-year growth of 390,000 
fee-based customer contracts to reach 1.55 million. Together with the
German market, we held some 3.20 million contracts as of September 
30, 2007. In the field of Information Management, there was 
year-on-year growth of 120,000 contracts to 1.19 million and in DSL 
of some 470,000 to 2.54 million customer contracts," continues 
In addition to the acquisition of new customers and the launch of 
innovative products - such as our all-inclusive packages without 
Deutsche Telekom phone connections - the main focus of our DSL 
business in the past few months was placed on raising customer 
loyalty and expanding business with our current client base. Compared
with the same period last year, the number of telephony customers 
rose from 560,000 to 1.60 million. The telephone minutes completed 
per month grew from 540 million to over 800 million.
"Following the launch of our all-inclusive packages on July 1, 2007, 
we were able to gain 120,000 new DSL customers in the third quarter 
of 2007. Business is running very well and it looks as though we will
succeed in reaching our annual target of approx. 500,000 new DSL 
customers," explains Dommermuth.
In United Internet's Product segment, with its core brands 1&1, GMX 
and WEB.DE, there was year-on-year growth of 26.8% in the first 9 
months of 2007, from EUR 721.8 million to EUR 915.5 million. EBITDA 
improved by 21.7% from EUR 167.9 million to EUR 204.4 million and EBT
by 24.7% from EUR 130.9 million to EUR 163.2 million.
In the Online Marketing segment, the brands AdLINK, affilinet and 
Sedo benefited from the ongoing positive development of the online 
advertising market. Compared with the same period last year, sales in
this segment grew by 28.6% from EUR 122.1 million to EUR 157.0 
million. EBITDA rose by 132.7% from EUR 15.0 million to EUR 34.9 
million, while EBT improved by 61.6% from EUR 13.8 million to EUR 
22.3 million.
"We are also optimistic for the remaining months of the current 
fiscal year: we expect further strong growth with our all-inclusive 
DSL packages. We also see continued dynamic growth for our portal 
business, our international webhosting products and our Online 
Marketing segment. The roll-out of new products in Germany and abroad
will also open up additional growth opportunities for us," explains 
Dommermuth. "In total, we expect year-on-year growth in earnings per 
share from continued operations - without one-off positive effects - 
of over 40% in 2007."
With 7.07 million customer contracts, United Internet AG is a leading
Internet Service Provider (ISP). In its "Product" segment, the 
Group's value-added internet services and fast internet connections 
are directed at private users, small/home offices (SoHos) and small 
to mid-size enterprises (SMEs). These groups are served by the brands
GMX, WEB.DE, 1&1, InterNetX and Fasthosts. In addition to its 
"Product" business, the Group is also engaged in "Online Marketing" 
(via the brands AdLINK, affilinet and Sedo).
end of announcement                               euro adhoc 08.11.2007 20:40:35

Further inquiry note:

Contact partner:
Marcus Schaps
United Internet AG
Head of Press and Public Relations
Phone: +49 2602/96-1076
Fax: +49 2602/96-1013

Branche: Telecommunications Services
ISIN: DE0005089031
WKN: 508903
Index: TecDAX, Technologie All Share, HDAX, Midcap Market Index,
Prime All Share, CDAX
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade
Börse München / free trade

Original content of: United Internet AG, transmitted by news aktuell