Risk Management and Internal Control

Sarbanes-Oxley Act

Given our listing on the New York Stock Exchange, we had to comply with certain requirements of the U.S. Sarbanes-Oxley Act over the fiscal year 2007. This obligation is no longer valid since 4 April 2008, following our delisting from the New York Stock Exchange as of that date. During 2005, our compliance efforts focused on further improving our internal controls over our financial reporting. In March 2005, the SEC extended the deadline for compliance with the US Sarbanes-Oxley Act 404 by one year. KPN fully complies with Section 404 of the US Sarbanes-Oxley Act for the financial year 2006.

Since 2003, KPN has undertaken significant steps to improve the adequacy and effectiveness of its internal controls over financial reporting and the documentary evidence thereof in preparation for compliance with requirements of section 404 of the Sarbanes-Oxley Act of 2002. The scope of this project includes assessment of and, where necessary, strengthening the Company’s policies, procedures, systems and personnel with respect to fi nancial reporting under both IFRS and US GAAP.

Disclosure Committee

A Disclosure Committee, established in January 2003, evaluates disclosure and internal control procedures to ensure that relevant information on the Company is brought to the attention of the Board of Management. This Committee also examines reports that are to be issued externally to ensure that they are correct, timely and complete. The Disclosure Committee advises the Board of Management. This committee consists of the directors of Corporate Control, Corporate Treasury & Risk Management, Corporate Legal, Corporate Communications and Investor Relations, the Secretary to the Board of Management and the finance directors of the Fixed division and mobile operators.