DGAP-News:Telefónica Deutschland Holding AG: Drillisch group to take over up to 301 shops from Telefónica Deutschland

DGAP-News: Telefónica Deutschland Holding AG / Key word(s): Miscellaneous Telefónica Deutschland Holding AG: Drillisch group to take over up to 301 shops from Telefónica Deutschland 27.05.2015 / 08:00

Munich, 27 May 2015 Drillisch group to take over up to 301 shops from Telefónica Deutschland - Negotiations with works councils successfully completed - Agreement includes transfer of around 300 employees - Agreement gives Drillisch access to shop-based sales via attractive locations - Reduction of overlaps in Telefónica Deutschland's shop network after acquisition of E-Plus group Telefónica Deutschland and Drillisch have agreed on the scope and details of the planned purchase of shops of the merged company. The Drillisch group will acquire up to 301 locations in total, which will transitioned to the new owner from the middle of the year. 102 of these shops are Telefónica Deutschland's own shops and probably around 199 are partner shops. The agreement will see Drillisch taking over both the shops themselves and around 300 employees via its subsidiary yourfone. In addition to this, a number of office and field staff will also be transferred to Drillisch to help set up the retail organisation. "We are delighted to have found a very satisfying solution together with Drillisch and the works councils", says Markus Haas, Chief Operating Officer on the management board of Telefónica Deutschland Holding AG. "It offers benefits for everyone involved. It's important for us to make the integration and transformation of Telefónica Deutschland socially acceptable. And the agreement with Drillisch significantly contributes to this. We are reducing overlaps in our shop network and - together with Drillisch - at the same time are securing jobs. Our customers will continue to benefit from our strong presence in Germany's city centres and the best possible service. Also in the future, Telefónica Deutschland will have one of the densest shop networks in the German telecoms market." "For us this agreement is a good opportunity to set up our own shop network and expand our market position with the help of established shops of Telefónica Deutschland. We will also benefit from the know-how of the employees. We're looking forward to this reinforcement with experts", adds Paschalis Choulidis, Executive-Board Spokesman of Drillisch AG. Following its acquisition of E-Plus, Telefónica Deutschland has around 1,750 own and partner shops. The analysis of our market presence has revealed that some of the shops are in close proximity to each other and as such do not offer additional value for our customers in terms of service. Therefore, as already announced, Telefónica Deutschland will reduce the number of shops by a third over the next five years. Further Information: Telefónica Deutschland Investor Relations Georg-Brauchle-Ring 23-25 D-80992 München t +49 (0)89 2442-1010 f +49 (0)89 2442-2000 e ir-deutschland@telefonica.com

27.05.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

Language: English Company: Telefónica Deutschland Holding AG Georg-Brauchle-Ring 23-25 80992 München Germany Phone: +49 (0)89 24 42 0 Internet: www.telefonica.de ISIN: DE000A1J5RX9 WKN: A1J5RX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart TecDAX End of News DGAP News-Service

361913 27.05.2015