LONDON (Standard&Poor's) May 15, 2003--Standard&Poor's Ratings Services said today its ratings and outlook on Germany-based telecommunications operator Deutsche Telekom AG (BBB+/Stable/A-2) remain unchanged following the announcement of the group's results for the three months to March 31, 2002. The results reflect the continued success of Deutsche Telekom's efforts to improve operating performance, sustain free cash flow, and deleverage its balance sheet. Margins improved in each of Deutsche Telekom's business units and net debt reduced by €5.0 billion ($5.7 billion), primarily as a result of €2.3 billion of asset sales and €2.0 billion of free cash flow generation. Deutsche Telekom is now targeting free cash flow of €5.3 billion-€5.8 billion for the full-year 2003 and €5.0 billion-€6.0
