KKFnet MERGES WITH BROADNET MEDIASCAPE

Minden, Germany, 24 July 2002 - KKFnet shareholders signed an agreement with Broadnet Mediascape on 22 July 2002, by which Broadnet Mediascape will acquire all of KKFnet for a combination of cash and shares.

Broadnet Mediascape is - as is KKFnet - a German broadband internet carrier with its own Wireless Local Loop infrastructure - being the only player in Germany to offer WLL successfully. Besides WLL, the company is reselling SDSL.

Its shares are listed on the Neuer Markt.
By this active consolidation of the broadband market, the merger creates a major broadband player focused on the German SME business market.

Both companies see an opportunity to strengthen their market position, through complementary product offerings and a well funded business plan.

The German Antitrust Office needs to approve the transaction, which is expected will materialize in a few weeks time.

KKR and Broadnet B.V. (majority owned by Comcast) will together own approximately 60 per cent of the company.

In addition to the currently offered data communication services, primarily SDSL broadband and VPN solutions, KKFnet customers have the opportunity to buy broadband connections by wireless local loop (WLL) as well as video on demand from the new entity.

"There is no change for our customers and sales partners. Quite the opposite: They will benefit from new services.", says Martin Lux, KKFnet´s Chief Sales Officer.

The new entity will serve over 5,000 business customers via its own infrastructure.

"Through the merger we will try to realize as many synergies as possible. For example, we will put the combined traffic on one backbone network, upgrade it and get rid of the second one", explains Martin Lux. "The merger is very positive news in a market full of insolvencies - it creates a well funded and focused player in the German Broadband Communications market .", says Martin van Os, CFO of KKFnet. "The combined entity doubles its revenues compared to each single entity - it achieves scale more quickly and combined with the effects of the synergies, its break even point will be achieved much earlier."

KKR invested in KKFnet in 2000.

Contact:
Frank Machwitz
T: +49 571 9450 152

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