Continuation of the Headcount Reduction Process

( Jun 30, 2009 )T-Hrvatski Telekom, the leading provider of telecommunications services in Croatia, announces that as part of its ongoing headcount reduction programme, the Group will reduce the number of employees by 190, after the approval of the programme by the Croatian Employment Agency and completion of the formal process with the Workers’ Council. This represents a total cost of HRK 86.4 million, provision for most of which has already been made in the 2008 accounts.

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About T-Hrvatski Telekom

T-Hrvatski Telekom (T-HT) is the leading provider of telecommunication services in Croatia, serving more than 1.5 million fixed lines, 2.78 million mobile subscribers and more than 492,000 broadband connections through its two divisions: T-Com and T-Mobile.

Deutsche Telekom AG owns 51% of T-HT’s shares, with the Government of the Republic of Croatia owning 3.6% following the transfer of a proportion of its holding to Croatian private investors as bonus shares, in October 2008. Since its initial public offering in October 2007, T-HT shares have traded on the Zagreb Stock Exchange, with global depositary receipts trading on the London Stock Exchange.