KPN improves terms EUR 1.5 billion credit facility

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Den Haag, 18-8-04

CFO Maarten Henderson:

"We are pleased that we have been able to renegotiate the existing facility with our core relationship banks and also, that we have strengthened the existing group with three new banks. We are particularly pleased that the previous restrictive financial covenants are all removed, credit to our solid financial position."

The most important improvements are:

· Extension of the maturity date from April 2006 to August 2009

· Improved interest margin and commitment fee

· Removal of financial covenants

This facility replaces the existing EUR 1.5 billion credit facility, which was signed in April 2003. The credit facility can be used for general corporate purposes, working capital or refinancing of indebtedness of KPN and/or subsidiaries and includes a swingline facility. KPN reiterates that it currently, as in the past, has no intention to draw upon this facility.

KPN is currently rated A- with a stable outlook by Standard & Poors and Baa1 with a stable outlook by Moody's. With this rating, the applicable margin will be 0.275% compared to 0.70% under the existing credit facility.

The Mandated Lead Arrangers on the transaction are ABN AMRO Bank N.V., Banc of America, BNP Paribas, Citigroup (Bookrunner), Credit Suisse First Boston, Deutsche Bank AG, Fortis Bank (Nederland) N.V., HVB Group, ING Bank N.V. (Bookrunner), J.P. Morgan (Bookrunner), Rabobank and The Royal Bank of Scotland.