WIND, The Joint Venture of Deutsche Telekom, Enel and France Telecom, Wins National Mobile License in Italy.

ROME/PARIS/BONN--(BUSINESS WIRE)--June 10, 1998--Deutsche Telekom, Enel and France Telecom congratulate their Italian joint venture WIND on its successful bid for the third mobile license (dual-band GSM 900/1800) in Italy. The official announcement was made yesterday evening in Rome by the Ministry of Communications.

WIND was founded in November 1997 by Enel, the Italian electricity company (holding 51 percent), Deutsche Telekom and France Telecom (who jointly hold 49 percent). WIND already owns a license for fixed network services in Italy. The award of the mobile license now enables WIND to offer high-quality, integrated fixed-mobile services to Italian customers at competitive rates. In addition, Italian customers will have access to the international voice and data product portfolio of Global One, the international joint venture of Deutsche Telekom, France Telecom and Sprint.

Italy is Europe's largest mobile communications market with a penetration rate of 21.1 percent. Deutsche Telekom, Enel and France Telecom expect further growth in both the mobile and fixed telecommunications markets.

In their joint venture WIND, the three parent companies Deutsche Telekom, Enel and France Telecom combine an intimate knowledge of the Italian telecommunications market, state-of-the-art know-how and proven operating experience. The launch of both fixed network and mobile services is planned for the end of this year.

Michel Bon, Chairman and CEO of France Telecom, declared, "We are very proud of this new success which proves the strength of our partnership with Deutsche Telekom and Enel and underlines our joint commitment to the Italian market. In addition to fixed telephony, the award of the mobile license now enables WIND to offer a complete range of high-quality services. This is one of the positive results achieved with the liberalization of the European telecommunications markets, giving Italian customers a larger choice with an international reach. And, of course, the creation of new jobs is one of the long-term economic benefits to be gained."

Dr. Ron Sommer, Chief Executive Officer of Deutsche Telekom, underlined, "It gives us particular pleasure, together with our partners France Telecom and Enel, to be establishing the first carrier in Italy to offer innovative integrated services. For Deutsche Telekom, WIND is further evidence of our successful partnership with France Telecom, the very core of our international strategy in Europe. With our combined resources and expertise, this partnership unleashes and optimizes synergy effects. In Italy, this benefits both our Italian partner Enel, as well as our Italian customers. The partnership between Deutsche Telekom and France Telecom in the WIND joint venture means that we can create for our Italian customers an Italian service portfolio with a European dimension."

Franco Tato, Chief Executive Officer of Enel, said, "It is the victory of WIND management's project. WIND gives a true contribution to the liberalization of the Italian telecommunications sector based on the value of Enel's assets, as well as the technological and financial support from Deutsche Telekom and France Telecom. WIND, the most important European telecommunications joint venture, will create new employment and new investments to serve the competitiveness of the whole Italian industrial system and offer new opportunities in personal communication to Italian customers."

Official telecommunications operator of the 1998 World Cup, France Telecom is one of the world's leading telecommunications carriers, with 1997 consolidated operating revenues of FF 156.7 billion, 33.7 million telephone lines in service and operations in more than 50 countries. France Telecom is developing and operating mobile networks in Argentina, Belgium, Botswana, the Caribbean, China, Denmark, Egypt, Greece, India, the Ivory Coast, Lebanon, Mexico, Moldova, Poland, Portugal, Romania, Senegal and Slovakia and serves more than 5 million mobile customers worldwide. In addition to mobile telephony, France Telecom provides businesses and consumers with local and long-distance telephony, data, online, Internet, cable-TV, broadcasting and value-added services. France Telecom (NYSE: FTE) held an initial public offering in October 1997. Together with Deutsche Telekom and Sprint, France Telecom created the international joint venture Global One, providing global, seamless voice and data services for businesses, consumers, and carriers. (http://www.francetelecom.fr)

Deutsche Telekom, with revenue of DM67.6 billion in 1997, is Europe's largest telecommunications company and the third-largest carrier worldwide. Offering a complete range of products and services in Germany, Deutsche Telekom is the leader in mobile communications services with about 4 million mobile telephony customers. Almost 17.3 million homes are connected to the Deutsche Telekom cable television network. Furthermore, it has 45 million telephone lines in service, about 8.3 million ISDN channels and its T-Online service currently has 2.1 million customers, making Deutsche Telekom the largest Internet provider in Europe. Through Global One, Deutsche Telekom's international joint venture with France Telecom and Sprint, its subsidiaries and international joint ventures, Deutsche Telekom serves customers in over 65 countries around the world. (http://www.telekom.de)

With over 650,000 miles of transmission lines, Enel is the world's second-largest electric utility in terms of installed power and number of customers. Installed power amounts to 55,106 MW and the number of customers is 28.7 million. In 1996, Enel sold 213.8 TWh of electricity, recording revenue amounting to ITL36,767 billion and EBITD and EBIT of ITL14,666 billion and ITL8,311 billion respectively. As of June 30, 1997, the group's workforce totaled some 90,572. On December 31, 1996, net profit was ITL1,272 billion. Enel has an in-house mobile telephone network with 540 radio stations, 1,000 fixed telephony switches and 400 data transmission nodes. Enel has already started an E-NET project to install about 10,000 km of fiber-optic cables to connect 110 major Italian cities.

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