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Den Haag, 14-6-07

KPN has reduced the 2010 debt maturity by EUR 0.7 billion, following the dual-tranche issue of EUR 1 billion of bonds in May this year. This concludes KPN’s liability management transaction to smoothen its redemption profile as announced on 21 May.

According to KPN’s policy to mitigate foreign currency exposure, KPN hedged in 2000 the US Dollar exposure relating to the USD 1.75 billion bonds maturing in 2010 through cross currency interest rate swaps (EUR/USD swap rate of 0.87), resulting in EUR 2.0 billion debt maturing in 2010. KPN has renegotiated the swap rate of these cross currency interest rate swaps to current exchange rates (EUR/USD swap rate of 1.34), equivalent to an early redemption of the 2010 liability by EUR 0.7 billion to EUR 1.3 billion.

Furthermore this refinancing transaction includes an early interest payment of approximately EUR 75 million resulting in a total cash out of EUR 0.8 billion.

KPN has a credit rating of BBB+ with negative outlook by S&P and Baa2 with stable outlook by Moody's.