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• KPN Vandaag

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Den Haag, 2-6-06

KPN has reached agreement in principle regarding the acquisition of Demon Netherlands, the Dutch ISP activities of British telecommunications provider THUS Plc, for a consideration of EUR 69 million. KPN’s flagship ISP XS4ALL will take over the provision of services to Demon’s approximately 70,000 customers in the Netherlands.

This acquisition forms a further step in KPN’s strategy of strengthening its position on the Dutch broadband market. As of the end of March 2006, KPN served more than 1.6 million ADSL customers in the Netherlands.

Demon Netherlands employs approximately 60 people and serves both the retail consumer and business markets, predominantly with broadband (DSL) services.

The relevant works councils have been notified and will be asked for advice.

About THUS

THUS is a leading provider of fixed line telecommunication services to business customers in the UK. The Company serves corporate and public sector organisations under the THUS brand, while tailoring services to small and mid-sized businesses under the Demon brand.

THUS has the UK’s first national, next-generation, fixed line network. Extending over 10,000km with more than 190 points of presence, the network supports a full portfolio of voice, data and Internet services and is ideally suited to the delivery of new wave, IP-based services.

THUS was listed on the London Stock Exchange in 1999.