Fixed Consumer Seminar

London, 15 June 2006

2

Safe harbor

Certain statements contained in this presentation constitute forward-looking statements. These statements may include, without limitation, statements concerning future results of operations, the impact of regulatory initiatives on our operations, our and our joint ventures' share of new and existing markets, general industry and macro-economic trends and our performance relative thereto, and statements preceded by, followed by or including the words “believes”, “expects”, “anticipates” or similar expressions. These forward-looking statements rely on a number of assumptions concerning future events and are subject to uncertainties and other factors, many of which are outside our control that could cause actual results to differ materially from such statements. A number of these factors are described (not exhaustively) in our 2005 Annual Report and Form 20-F.

All figures in this presentation are unaudited and based on IFRS. This presentation contains a number of non-GAAP figures, such as EBITDA and free cash flow. These non-GAAP figures should not be viewed as a substitute for our GAAP figures. Our non-GAAP measures may not be comparable to non-GAAP measures used by other companies.

All market share information in this presentation is based on management estimates based on externally available information, unless indicated otherwise. Certain figures may be subject to rounding differences.

3

Agenda

Robin Clements, Interim Director Consumer VoiceFixed Consumer Voice

Karin Valk, Director Consumer BroadbandFixed Consumer Internet

Ludolf Rasterhoff, Director TV and MediaFixed Consumer TV

Michiel Buitelaar, Director Consumer MarketFixed Consumer

Michiel Buitelaar, Director Consumer MarketConclusions

Eelco Blok, Board member responsible for FixedIntroduction

Fixed Consumer KPN’s strategy in the battle for the consumer

Michiel Buitelaar, Director Consumer Market

5

The Dutch consumer marketDynamic and competitive

Dutch consumers are rapidly adopting new technologies

The Netherlands is one of the most competitive markets in Europe

Broadband penetration2

Traditional competitors

‘Mobile only’ households1

6% 8%12%

16%

2002 2003 2004 2005

2%4%

6%9%

13%

Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06

VoIP lines in % of broadband3

15%27%

45%58%

2002 2003 2004 2005

New competitors with different business models

1 Households without fixed line or cable telephony connection; management estimates2 Percentage of households with a broadband connection; management estimates3 VoIP excluding peer-to-peer applications

6

Trends and strategyAttack-Defend-Exploit strategy counters line loss trends

• Attack: Broadband, VoIP, Digital TV, IPTV• Defend: Multibrand, multi-channel, service• Exploit: Customer Lifecycle Management (CLM)

0

6,000

Voice minutes (bn)

Q1 ’04 Q1 ’05 Q3 ’05 Q1 ’06

# lines (mn)

4.0

Line loss

Q3 ’04

171138

272 239

28%

44%

24%

42%

-/- 15%

Contracting voice revenues

Q1 ’04 Q1 ’05 Q3 ’05 Q1 ’06 Q3 ’04

6.0

Access Traffic

7

Multiplay, market leader in the new worldFour technology ‘skills’ enabling attractive combinations of products/services

Dominate the basic products

Differentiate with services

Mobile/Wireless

Internet Fixed Voice TV

InternetFixed Voice

Internet TV

Mobile/Wireless

TV InternetMobile/

Wireless

Mobile/Wireless

FixedVoice

VoIP

IPTV

DVB-H

Mobile VoIP

Mobile Internet

8

Multibrand strategy Reach specific customer groups with segmented brands

Value

Pric

e

Premium brands• XS4All; top quality and innovative

internet

• MINE; premium interactive television

• KPN; high quality and reliable

• Planet; internet and content, market leader

• Hi; fun and contact with your mobile

Value brands• Telfort; value-for-money

• Digitenne; digital TV

• Het Net; no-frills, no nonsense internet

• Simyo; no-frills pre-paid bundles for mobile

• SLIM; no-frills bundles for fixed phones

9

Multiplay portfolioProvide attractive bundles and value added services under our multibrands

Digital TV

VoIP

Internet

GamingMobile

News

VoIP

Digital TV

Internet

Voice

MSNArchive TVFilms

InternetFootballMobile (UMTS)Music

MusicFilmsInternetVoIPVoIP

MobileMobileMobileDigital TVIPTVVoIPInternetInternet

Serv

ices

10

• Score well in customer satisfaction• Excellence in service installation• Easy-to-use manuals• Availability of helpdesks

• Stores– Primafoon (Mainstream)– 576 (Youth market)– KRAL (Audio visual)

• Web, kpn.com• Largest call center in the

Netherlands• Retail partners

Market leader in serviceMulti-channels

Distribution and serviceWidespread distribution and excellent level of service

11

Return on investment withtargeted marketing• Increases ARPUs in

specific segments• Increases loyalty• Reduces churn• Proactively targets high-

value customers

ROI

Marketing based on ROI principleCLM as a tool to increase loyalty, reduce churn, cross and upsell

Database driven quantitativemarketing• One-on-one marketing• Know exact value of

customers• Simultaneous trial of

similar customers; to analyze conversion rates

CLM

Fixed Consumer VoiceIn the driver’s seat

Robin Clements, Interim Director Consumer Voice

13

• Cable companies making inroads in voice market

• Alternative DSL operators struggling for survival

• Fading business model for CPS operators• Internet companies (MSN, Google, eBay)

challenging (voice) business model

Increasing competition• VoIP is rapidly replacing traditional voice• Broadband is everywhere, services on

the rise• Consumer demand fragmenting, requiring

personalization

Changing customer demand

Trends continue …‘Mobile only’ households1 VoIP lines in % of broadband 2

1 Households without fixed line or cable telephony connection; management estimates2 VoIP excluding peer to peer applications

13% 14% 15% 16% 17%

Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06

2%4%

6%9%

13%

Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06

Voice in the Netherlands A challenging market

14

Our visionVoice is moving from telephone lines to customer’s personal environment

• Households to . . .

• Just telephones to . . .

• Dutch homes to . . .

• Standardized products to . . .

• Stand-alone offerings to . . .

• Offered with brands from KPN

. . . individuals

. . . a diversity of devices

. . . people everywhere

. . . personalized services

. . . a feature within an application

To be offered with brands from KPNand partners

From… To…

15

Our strategy

Attack

Defend

Moving from traditional telephony to new (IP) voice services…

…while sustaining our leading market share in the traditional voice market

16

Traditional competitorsReach: national

1.1 mn CPS usersIntroduction WLR

CPS Winback programs

Putting our strategy into actionA multibrand and CLM based answer to all competitive offerings

Cable operatorsReach: > 90% of

Dutch households6 mn TV customers

1.7 mn broadband and 600k telephony

customers

InternetPlusBellen &

Slim

Alternative DSL operators

Reach: 50% - 80% of Dutch households

> 1 mn broadband and100k – 150k telephony

customers

Cross sell and loyalty programs

Internet playersReach: everyone with

Internet accessMSN claims 5.8 mn

users

KPNCommunicator

KPN Instant messenger

Exploring newbusiness models

17

Voice market share up almost 4% in just one yearWinback programs and bundles prove to be successful

70%

60%

Market share voice minutes(excl. VoIP)

Q1 ’04 Q3 ’04 Q1 ’05 Q3 ’05 Q1 ’06 April

z

65%

• CPS winback programs (CLM based)– Market share CPS operators declining

• Innovation pays off

• Successful loyalty program

• A significant number of customers now have bundles, leading to reduced churn

– Penetration minute bundles has reached 29%

• New (flat fee) bundles capture the opportunities of changed regulatory framework

– BelVrij– BelNaar Mobiel– BelBuitenland

640 800 1,288 1,444 1,446 1,390

Q3 '03 Q1 '04 Q3 '04 Q1 '05 Q3 '05 Q1 '06

11%15%

24%27% 28% 29%

Bundle penetration Number of bundles

X 1,000 Bundles

18

Innovation in traditional voice pays offBundled cordless phones reduce churn and increase ARPU

Q1 ’05 Q3 ’05 Q1 ’06 April Q2 ’05 Q4 ’05

Cordless handsets bundled with voice bundle

166

• Attractive cordless phones combined with minute bundles for a monthly fee with a 3 year contract

• A large and continuously innovating handset portfolio

• Reduced churn

• Fixed-to-mobile call main driver of ARPU increase

• Intention to use this concept for InternetPlusBellen

X 1,000

19

• Leading edge Customer Lifecycle Management– Increase revenue per customer through upsell program– Decrease churn by a targeted cross-sell program– Segmented approach on value and on churn risk– Direct marketing execution

• KPN loyalty program– 2 mn high value customers

• Positioning KPN as a relationship brand• Key tool to achieve CPS churn targets• High response on advice mailings

advice empathetic

cross selling

Telephony Telephony+ TV

Telephony+ Internet

Triple play

Multiplay reduces churnCustomer Lifecycle Management

Loyalty Program

Loyalty program and Customer Lifecycle ManagementA loyal customer base is key for us

20

Multibrand approach• Using our prominent brands for different

market segments• Besides national also regional

campaigns• Multi distribution strategy• Low cost voice-only product (Slim)• VoIP client to support a variety of

applications and devices

InternetPlusBellen proposition• One bundle for VoIP and broadband

internet as of € 34.95• No fixed line needed• No hassle with your current number,

handset and computer• Flat fee calling• High scores in quality research1 amongst

customers

We take full advantage of the VoIP opportunity

KPN brands

Bas

ic

Voice Voice/Internet

Prem

ium

1 TNS Nipo research

21

Results so far• KPN is the fastest growing VoIP

player• More than 127k contracts signed

until Q1 2006• Many VoIP subscribers are also new

broadband customers• At this stage of the growth, ARPU

impact is positive

• Mass introduction with television campaigns is yet to come…

We are on track

2946

73

103

Jan '06 Feb '06 Mar '06 Apr '06

Jan '06 Feb '06 Mar '06 Apr '06

> 35%> 30%

KPN market share in VoIP adds

KPN VoIP subscriptions X 1,000

22

Short clip ‘InternetPlusBellen’

23

• Mobile only and migration to VoIP affect PSTN and ISDN lines

• In 2005 this trend accelerated because in particular cable operators acquired a significant number of customers

• However, since 2006 we are able to successfully counteract this trend

• Marketing campaigns are now targeted at customers who are likely to churn and in regions were cable is successful with VoIP offerings

Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06

Line migration from switched to VoIP

Positive impact VoIP Strong consumer demand for KPN VoIP beginning to impact line loss trend

-67 -67-77

-117-127

Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06

Net line loss1X 1,000

Total migration Migration to competition

1 PSTN/ISDN line loss -/- growth VoIP -/- growth ADSL only

24

, our new low cost voice brand

• The advent of VoIP fueled customer’s perception that the regulated fixed telephony subscription is expensive

• In a world of multiplay propositions KPN’s single play voice customers are potential targets for competitors

• Introduction of our low cost voice brand Slim

• Main target group: Customers with a high propensity to churn

• Slim acts as a ‘Trojan horse’: upselling to InternetPlusBellen and Mine

Moves from competitors. . .

. . . ask for a smart counter attack . . .

• No monthly line rental• € 19.95 for a bundle of 500 minutes• Free Internet access as a gift (128 Kb)

IP based

Customer perception as starting point

25

ConclusionsIn the driver’s seat

• Competition is fierce, but…

• KPN is successful with a clearly defined, aggressive strategy

• Moving from traditional telephony to new (IP) voice services…

• …while sustaining our leading share in the traditional voice market

Fixed Consumer BroadbandStepping stone for future services

Karin Valk, Director Consumer Internet

27

Broadband in the NetherlandsThe market defined

• Dial-up since 1993 and broadband since 1998• 72% internet penetration1 (UK: 58%2)• 62% broadband penetration1 (UK: 33%2)• Growing market

– Number of households: 4.348 million1

• Highly competitive market– Infrastructure players (cable), service providers (ISP) and KPN– Competing on voice, broadband and TV– New players up the ante e.g. MSN, Google and Yahoo

• Competitors coming from a different starting position– IP initiatives at KPN vs enhanced product offering from cable– Microsoft Messenger

1 Percentage of households as of Q1 20062 Percentage of households as of December 2006 (Source: Ofcom)

28

Broadband penetration by population3

Broa

dban

d lin

es p

er 1

00

popu

latio

n

Broadband in the Netherlands (continued)Penetration development and relative position of the Netherlands

2002 2003 2004

15%27%

45% 58%

2005

NL

• In the Netherlands, 7 out of every 10 households has internet access

• Penetration of broadband is one of the highest in Europe and worldwide 3rd

• Dutch spend the most time online (~47 hours per month)2 after the Israelis, Finns and South Koreans

1 As a percentage of households2 ComScore World Matrix3 Source: Point Topic

Q1 06

62%

Broadband penetration1

29

Broadband in the Netherlands (continued)How the pie is divided

Breakdown2Subscribers1

4,348 mnMarket

760kAlternative DSL

1,721 mnCable

581k 495k 242k 276k

Other 273k1,867 mn

1 As of Q1 20062 Management estimates for Cable and Alternative ADSL providers

23%

8%4%

32%

4%29% UPC/Chello

@HomeCasemaMultikabel/QuicknetZeelandnetCAI Westland

25%

16%

34%

1%24%

VersatelTiscaliBBNedWanadooOther

30

Highly competitive market Competing on voice, broadband and TV

√√√√

√√√√

√

√√√√

√

√√√

√√√

√√√√√

√√√√√√

√√√√

Mobile VoiceFixed VoiceDigital TVAnalogue TVCableADSL

DS

L op

erat

ors

Cab

leop

erat

ors

31

Highly competitive market (continued)Competition on multiplay is on full speed

Cable: VoIP, Cable internet & TVCasema midi:• Internet/Voice from € 29.95 month• Unlimited calls: € 9.95 month• TV: € 14,95 month

CPS: VoIP, ADSL, TV & MobileScarlet One:• Internet/Voice from € 39.95 month• Unlimited calling included• TV: € 7.45 month

ISP’s: VoIP, ADSL & MobileWanadoo family:• Internet/Voice from € 29.95 month • Plus € 9.67 month KPN• Unlimited calling after call set up

Consumer• Confused by multitude of offerings• Afraid she now is paying to much• Would appreciate guidance from KPN

KPN: Fixed voice, VoIP, ADSL, TV & Mobile• InternetPlusBellen: internet/voice from € 34.95 month • Unlimited calls: € 9.95 month• TV: € 7.95 month

“Get rid off KPN”

32

Setting the contextHow we became the leading broadband provider

• KPN was relatively late to the game (2001)• Optimal production process and focused marketing enabled rapid upscaling

– Some 500k installations at peak (2004)• Multibrands targeting different segments in the market• Overtaken cable as leading broadband provider in Q4 ‘04• Continued growth, both organic and through acquisition

525 775175

418

913

1,3641,0351,721

1,867

1,500

11

65

760

470

303

0

1,000

2,000

3,000

4,000

5,000

Q1 '02 Q1 '03 Q1 '04 Q1 '05 Q1 '06

1 Of which currently approximately 80% consumers and 20% business (management estimates)2 Excluding Bitstream

X 1,000 Broadband connections1

Other ADSL2KPN ADSLCable

33

March ’061.1% (Broadband)40k (DSL)

June ’06 1.3% (Broadband)57k (DSL)

September ’051.4% (Broadband)50k (DSL)

July ’051.6% (Broadband)60k (KPN ADSL)

February ’050.8% (Broadband)28k (DSL)

January ’050.1% (Broadband)5k (DSL)

Date acquiredMarket share# Customers

Growth through acquisitionsSuccessful acquisitions continue to drive up our market share

34

Multibrand portfolioCovering specific customer segments needs

Value

Pric

e

35

Our multibrand portfolio in more detail

• Brand image: No-frills, no nonsense

• ADSL customers: 495K1

• Dial-up customers : 270K1

• Successes: ‘Effie’ award for most effective advertising campaign

• Brand image: High quality and reliable

• ADSL customers: 276K 1

• Dial-up customers: -• Successes: KPN one of

the first incumbents to launch a ‘naked’ DSL service. Wireless offered as standard. Most trusted brand in NL

• Brand image: Top quality and innovation

• ADSL customers: 242K1

• Dial-up customers: 32K1

• Successes: Winner of best buy award from the Consumentbond (Consumer watchdog). Ranked #1 ISP in Computable magazine

• Brand image: Content and internet market leader

• ADSL customers: 581K1

• Dial-up customers: 176K1

• Successes: Largest ISP and winner of ‘Gouden Loeki’ for best consumer advertising

1 As of Q1 2006

36

Short clip ‘Modern Technology’Best Dutch TV commercial

37

Retention

Customer Lifecycle ManagementGenerating value by managing our customers

Cross-sell

• Customers with multiple products have a lower churn rate

Upsell

• Program in place to migrate dial-in customers to ADSL (>50% conversion)

• Customers about to churn are sent to a ‘save’ team across all product line (telephony, TV, and internet)

Telephony Telephony+ TV

Telephony+ Internet

Triple play

0%

20%

40%

60%

80%

100%

A M J J A S O N D J F M A

0

5,000

10,000

15,000

20,000

Saves Net conversion

38

Move away from bandwidthGetting deep into the houses and lives of consumers

www.hethuisvanmorgen.nl

(Wireless) internet (Video) calls IPTV

39

Innovative services Our current roadmap

PC Veilig

2nd half 2006DatastoringWebdisk

AvailableMusic downloadingMusicStream

AvailableAt home maintenanceServiceThuis

AvailableVideo uploading and broadcastingShoobidoo

2nd half 2006

2nd half 2006

2nd half 2006

2nd half 2006

Available

Introduction

Photo sharing and printing

Internet security package

Remote Security

Messenger

Hotspots

Service

Online Fotoservice

PC Veilig

InBeeld

KPN Communicator

Wi-Fi

Name

40

• Introduced in March 2006 by our ISP Planet

• Priced at € 4.95 per month

• In the near future we will expand ServiceThuis to include InternetPlusBellen (our VoIP offering) and IPTV and later ServiceThuis will also target the SoHo-markt

Innovative services (continued)ServiceThuis

41

Prices of new servicesBroadband enabling potential upside

Telephony

€ 18 per month

Internet

€ 20 per month

VoIP(InternetPlusBellen)

€ 35 per month

IPTV

€ 19.95 per month

Traditional services IP-based services

Potential new innovative services

42

Conclusions

• Broadband market in the Netherlands is rapidly growing and highly competitive

• Broadband is our stepping stone towards all IP services

• We are well on track, growing with our multibrand portfolio and through acquisitions

• We are market leader, bigger than all cable companies combined

• Leading position in broadband enables us to drive new services such as voice, TV, music and ServiceThuis

43

Fixed Consumer TVThe third pillar of KPN’s multiplay offering

Ludolf Rasterhoff, Director TV and Media

44

0%

20%

40%

60%

100%

8%

10%3% 1%

78%

Analogue cable Digital cableSatelite KPN DVB-TOther

Dutch TV marketLagging behind on digital TV, but rapidly changing

> 90% cable penetration, with many regional playersPredominantly analogue due to limited innovation by cable operatorsOn average 30 to 35 analogue channels in basic package for € 15 per monthUnderdeveloped market of approximately € 1.4 bnDigital TV is now emerging, trend accelerated by KPN TV offerings

TV market shares Maturity curve digital TVRegional footprint cable

Source: Informa 2004

UPCEssent KabelcomCasemaMultikabelDelta KabelcomfortCAIWCoges KabelREKAMONSKabel NoordSt. CAI HarderwijkKabel TV BrunssumSt. Kabelnet VeendamSt. CAI-IJsselsteinTEBECAIOther

Canada 42.0%Ireland 45.3%USA 47.0%UK 57.2%

Germany 11.4%Japan 13.7%Switzerland 14.7%Portugal 15.2%Spain 17.1%Italy 18.3%Denmark 19.2%France 21.5%

Finland 26.6%Hong Kong 32.0%New Zealand 36.0%Malaysia 36.0%Sweden 37.8%

Czech Republic 2.1%Hungary 4.0%Greece 5.2%Netherlands 5.8%Austria 7.0%Poland 7.4%Belgium 9.5%

emerging growing mature

Source: VECAI Management estimates

45

Different services offering and infrastructure used to meet customer needs

Multibrand strategy enables KPN to grasp both the premium as well value for money segment of the untapped digital TV market

People’s TV

Missed episodeVoD

Personal recording

Pausing live TV

Better images & sound

More channels

‘Interactive digital TV’ via IPTV

Value for money‘Basic digital TV’ via DVB-T

KPN TV strategyTwo complementary services to meet all customer needs

Premium services

46

Digitenne (DVB-T)Multiplay: Tapping the TV market while retaining the customer

Value for money propositionBasic 25 TV / 18 radio channels for only € 7.95

Plug and play

‘whenever’: personal recorder

‘wherever’: outdoor, car

Key pillar of our multiplay offeringImportant loyalty instrument to reduce churn

>90% has at least one additional KPN subscription

~70% cancelled their cable connection

Strong uptake to 207k since launch in Q4 2004Fastest growing TV operator

>7% market share in population coverage area

Creating turmoil in the TV marketInnovation trigger for cable operators

Cable has lowered their digital subscription fees

Strong uptake KPN TV

75 98 126 150 184 207

Q4 '04 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06

X 1.000

47

DigitennePreparing for the next growth phase

Nozema acquisitionNetwork roll-out and DVB-T/DVB-H license secured

Acceleration of network roll out to nationwide coverage by early 2007

Analogue frequencies will be switched of October 2006

Rebranding to Digitenne by KPNOffered via two brands: Digitenne and TV by KPN

Digitenne has high brand recognition

Enhanced scope with DVB-HDigital, handheld and interactive service offering

Technical pilot conducted on interactive services during summer 2005

Mobile TV services to be commercially launched in 2007

~50% pop coverage DVB-T

48

KPN launching interactive TV‘the new way to watch TV’

48

49

Mine strategy (IPTV)Phased development of interactive TV: From appointment TV to Me TV

Appointment TV

Distributor

Personalized TV

Facilitating whenever and whatever

Your ownTV channel

Bringing internet,IP Media to TV

Your ideal TV evening

Personal guide

Me TV: Your ideal TV moment

Providing whenever, whatever and wherever

KPN’s added value as premium service provider

2006 2007 2008 2009

50

BillingChoiceLoyalty

KPN’s roleProviding choice and leveraging existing customer relationship

KPN is best positioned to offer the full range of servicesLargest Dutch service provider; 6.7 mn fixed-lines, 2.2 mn internet and 8.1 mn mobile customers

Trustworthy billing partner with national coverage in network, distribution and branding

Cost efficient and long track record

51

Premium service€ 149.95 Mine tunerMonthly subscription € 19.95

Enhanced functionalityReplay TVHard disc recordingEPGMissed episode

Access to more than 500 filmsExclusive Blockbuster partnership Contracts signed with

Warner BrosDutch Film works RTL Entertainment

More than 60 channelsPublicCommercialOtherTheme

Mine propositionPremium service in respect to both content and functionality

VoD

Service

Pricing

Content

52

Unique contentUnique partnerships resulting in unique, exclusive content

‘Uitzending gemist’Easy access to all missed episodes from the public channelsExclusive TV functionality, already huge success on the internet

‘NostalgieNet’Theme channel containing the golden oldies of Dutch public channels

Club TVAll about the top Dutch soccer teamsMatches available after 24 hoursJoint exploitation of exclusive content

Endemol Joint VentureExclusive content for theme channels and VoD Production of cross media programming materialDeveloping new forms of advertising

53

Short clip ‘Club TV’All about the top Dutch soccer teams

Football channel

54

MediaMallEnabler for your own TV channel

55

Advertising opportunitiesSeveral options to capture the opportunity of personalized advertising

‘Ad insertion’ for targeted advertisingFilmDirect (VoD)

BanneringEPG

Theme channels

Promotional URLs linkingEPG

Search Mine

‘Walled garden’

‘Promotion &

Trailer’

Personalized advertising

56

InteractivityOpen platformPersonalization

New content pricing models

EPGEasy recordingTime shiftingVideo on Demand

Local TV, MediaMallTV MagazineAdvertising

Film promotional channelUser generated content

Club TVNostalgie NetAdditional 20 TV channels

60 TV & 60 radio channels> 500 moviesCatch up TV

HD ready settopboxConnect own devices

New design settopboxInstall it yourself package

New design remote control

Mine tuner with personal recorder

Mine Light2 TV-propositionTrue Multiplay packagesRetail availability

Combined packages: ADSL, TV & VoIPCustomer driven innovation

ADSL & TV1 TV-propositionDirect sales availability

H1 ’07: DiscoverQ4 ’06: UpscaleQ3 ’06: Full launchQ2 ’06: Launch

Product roadmapContinued evolution towards Me TV

Services

Content

Hardware

Proposition

57

~60% pop coverage IPTV

ADSL2+ completed by the end of 2005; ~60% of households can be offered minimum of 12 Mb/s

Technical pilot on VDSL to increase capacity to more than 20 Mb/s

Technology perspective Operational for nearly 60% of households

Connecting 1 TV set at launch, 2 TVs by the end of 2006

3 to 4 Mb per channel based on MPEG 2

Developing MPEG 4 to double capacity

Stable

Scalable

HD ready by Q1 2007

58

Medium termToday

BasicDigital image and sound

Broadcast channels

BasicDigital image and sound

Broadcast channels

PremiumMultiplay value propositions

Trust worthy billing partner

Brand preference

Cross medial reach

Differentiating content

PremiumPersonal recorder in standard offer

First true on demand offer

Consumers prefer KPN brand over cable brands

National coverage with IPTV, DVB-T and UMTS

Competitive positioningMine is the leading innovator and premium service compared to cable

59

Conclusions

Two complementary brands/services to tap TV market

Successful inroad in TV market with Digitenne

Mine is stepping stone towards multimedia company

Providing choice and leveraging customer relationship

Exclusive partnerships with leading content providers

Developing Mine together with customers and business partners

At launch the most innovative TV service in the Netherlands

Management strengthened with media experience

Strong progression in third pillar of multiplay strategy towardsmultimedia company

60

Fixed Consumer Summary

Michiel Buitelaar, Director Consumer Market

61

Conclusions

• Attack-Defend-Exploit strategy to face challenging market dynamics

• Delivering on what we promise

– Aggressive on VoIP to counter line loss

– Consistent growth in broadband to deliver new services

– IPTV launched as stepping stone towards multimedia company

– Attractive roadmap of new services

• Leveraging our market leadership in Telephony, Mobile and Broadband with multiplay to be market leader in multimedia

• Multibrand, multi-channel and CLM as key drivers