Disposal of KPNQwest interest

RNS Number:8536L
Koninklijke KPN NV
18 October 2001

KPN to sell 10% of its interest in KPNQwest to Qwest.

The Hague - Royal KPN announces that it has approved the acquisition by KPNQwest
of GTS, which it considers an excellent transaction in the growth strategy of 
KPNQwest.

At the same time, as part of its debt reduction strategy, KPN has decided it 
wants to reduce its financial exposure to the European IP/data market.

KPN and Qwest have therefore entered into a transaction comprising the following
elements:

* KPN will sell 10% of its interest in KPNQwest (20 million shares) to Qwest 
(and its related-parties) for approximately EUR 101 million (USD 91,6 million), 
based on the average three weeks trading price, which proceeds KPN will use to 
reduce debt.

* In March 2002 Qwest will have the possibility of acquiring all or part of 
KPN'S remaining stake of approximately 40% at a price equivalent to market and 
thereafter the restriction in the current joint venture agreement on sales of 
KPNQwest shares by KPN or Qwest will be reduced. As of April 2002 private 
placement will be allowed and as of January 2003 public market transactions as 
well. All restrictions will be terminated as of April 2004.

* While non-compete agreements for all parties will be terminated, KPN and 
KPNQwest will continue their close business co-operation and KPN will continue 
to sell the KPNQwest products and services on an exclusive basis in the Benelux 
as part of its international portfolio.

As a consequence of the sale of 10% of KPN'S stake, changes will be made to the 
corporate governance of KPNQwest.

As of the closing of the transaction, KPN will also no longer proportionally 
consolidate KPNQwest in its financial statements. This will imply that 
approximately EUR 430 million of net debt will be deconsolidated from KPN'S 
books (amount as per end of June 2001).


For further information, please call 
KPN Press Department, on [phone]

Corporate Communications      Telefax [phone]
Press Department