Belgacom FLS core business protected through flat fees and bundled offers.
• Increasingly attractive offer on Belgacom TV.
• Telindus fully consolidated as of January 1st.
• Continued success of the Proximus Market Share Leadership Program and 3G
services.
• Belgacom ICS’ revenue increased 9% compared to the first quarter of 2005.


Fixed Line Services (Belgacom FLS)

The flat fees and bundled offers continue to have a positive impact on
operational results but lead to lower revenues out of traditional voice
products. This decline is however partially off-set by other revenue lines,
leading to a revenue result of Belgacom FLS’ core business of -2.8% (total
Belgacom FLS revenue excluding Belgacom TV, Telindus and disposed
companies).

The number of subscribers to Belgacom TV passed the 50,000 mark at the end
of April (vs. 42,000 at the end of March). An accelerated growth at the beginning
of the second quarter, was largely due to the increasingly attractive offer:
Belgacom TV launched thematic channel packages and made it possible to watch
TV broadcasts on demand. An aggressive marketing campaign, that was
launched at the end of the first quarter, and the improved coverage contributed
to the success as well.