Prospectus-Final (clean) - Malta Financial Services Authority

• Some of Deutsche Telekom's investments (such as in new spectrum licenses) to develop futureproducts and services may involve substantial cash outlays with no certainty of market acceptanceor regulatory non-interference with license requirements.• Failure to achieve the planned reduction and restructuring of personnel or the human resourcesrelatedcost-savings goals could negatively affect the reputation and the achievement of DeutscheTelekom's financial objectives and profitability.• As a result of dispositions of certain non-core businesses in Germany, there is an increased risk ofreturn of civil servants transferred out of the Deutsche Telekom Group, which could have anegative impact on the staff and cost reduction objectives.• Alleged health risks of wireless communications devices have led to litigation affecting marketswith Deutsche Telekom's mobile telecommunications operations subsidiaries, and could lead todecreased wireless communications usage or increased difficulty in obtaining sites for basestations and, as a result, adversely affect the financial condition and results of operations ofDeutsche Telekom's wireless services business.• Deutsche Telekom regularly engages in large-scale programs to reshape the informationtechnology (IT) and network infrastructure to adapt to changing customer needs andorganisational and accounting requirements. The implementation of any of these programs mayrequire substantial investments and a failure to effectively plan and monitor them could lead tomisallocations of resources and impaired processes with negative consequences for DeutscheTelekom's operations.• System failures due to natural or man-made disruptions and loss of data could result in reduceduser traffic and reduced revenues and could harm Deutsche Telekom's reputation and results.• Shortcomings in Deutsche Telekom's supply and procurement process could negatively affect itsproduct portfolio, revenues and profits.• Deutsche Telekom is continuously involved in disputes and litigation with regulators, competitionauthorities, competitors and other parties. The ultimate outcome of such legal proceedings isgenerally uncertain. When finally concluded, they may have a material adverse effect on DeutscheTelekom's results of operations and financial condition.• Exchange-rate, interest-rate and rating risks have had, and may continue to have, an adverseeffect on Deutsche Telekom's revenue and cost development.• Potential breaches of compliance requirements or the identification of material weaknesses inDeutsche Telekom's internal control over financial reporting may have an adverse impact onDeutsche Telekom's corporate reputation, financial condition and the trading price of its securities.• Developments in the telecommunications sector have resulted, and may in the future result, insubstantial write-downs of the carrying value of certain of Deutsche Telekom's assets.Risk Factors in respect of FinancePayment of principal and interest on notes issued by Finance are guaranteed by Deutsche TelekomAG. Therefore the risks in respect of Finance substantially correspond with the ones of DeutscheTelekom AG.11