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• KPN Vandaag

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Den Haag, 11-3-04

It is expected that share repurchases will be executed primarily via on-market transactions taking market circumstances into consideration. It is only intended to undertake sShare repurchases will only be undertakenat price levels that enhance value for the remaining shareholders. KPN intends . It is the intention of KPNto cancel any shares acquired.

CEO Ad Scheepbouwer said:

"In line with our firm commitment to deliver shareholder value, our recent 2003 results announcement stated that KPN has no intention of holding unutilised cash balances. Today we are pleased to announce the next step in fulfilling this commitment".

Share repurchases fit into KPN’s dividend policy and financial framework announced on February 23, 2004. The initial amount of EUR 500 million of intended share repurchases, combined with the proposed cash dividend for 2003 and the proposed special dividend announced on February 23, 2004, would amount to KPN shareholders receiving up to EUR 1.1 billion in cash distributions. This would represent approximately 50% of the current Free Cash Flow outlook for 2004, excluding the interim dividend for 2004 that KPN has indicated it intends to reinstate. In addition KPN will repay scheduled debt of approximately EUR 900 million maturing until 0.9 billion inJune 2004 out of existing cash balances.

In managing its balance sheet KPN will return surplus cash to shareholders either via additional special dividends or via share repurchases. As such, KPN will review its balance sheet on an ongoing basis within the parameters of its financial framework policyand in light of operating and market conditions.

As KPN intends to repurchase more than 1% of the outstanding share capital, the consent of the Dutch State as holder of the special share is required. The Dutch State has approved this repurchase programme but currently does not intend to sell any shares by participating in this programme.