Prospectus-Final (clean) - Malta Financial Services Authority

While Deutsche Telekom believes that it has established an appropriate compliance organisation todetect, assess, reduce and manage these risks, the global and diverse nature of Deutsche Telekom'soperations means that these risks and their related consequences will continue to exist. AlthoughDeutsche Telekom intends to take prompt measures to remediate any identified shortcomings in itsinternal controls over financial reporting, activities of this kind may involve significant effort andexpense, and disclosure of any failures, material weakness or other conditions, may result in adeterioration of Deutsche Telekom's corporate image and negative market reactions.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.Deutsche Telekom reviews on a regular basis the value of each of its subsidiaries and their assets. Inaddition to Deutsche Telekom's regular annual impairment reviews, whenever indications exist thatgoodwill, intangible assets or fixed assets may be impaired due to changes in the economic,regulatory, business or political environment, Deutsche Telekom considers the necessity of performingcertain valuation tests, which may result in impairment charges. The recognition of impairments ofintangible assets, property, plant and equipment and financial assets could cause Deutsche Telekomto take large, non-cash charges against net profit, which could lead to a reduction in the trading priceof its shares and ADSs.Risk Factors regarding Deutsche Telekom International Finance B.V.Payment of principal of 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.39