QSC: 1st Quarter Sales Exceed Revenues for All of 2000

Apr 30, 2001, 01:00 ET from QSC AG

    COLOGNE, Germany, April 30 /PRNewswire/ -- Prior to the release of its
 quarterly report, Cologne-based QSC AG (Nasdaq: QSCG) (Neuer Markt: QSC)
 reports an exponential sales increase for the 1st quarter of the 2001
 financial year.  QSC registered sales of over 5 million euros in the first
 three months.  First quarter 2001 revenues thus exceeded total revenues for
 the 2000 financial year.
     QSC's CEO, Bernd Schlobohm, is delighted: "This exponential increase is
 testimony to our leading position in the German market for DSL services.  It
 is also a direct result of our competitive advantage: a nationwide network,
 covering Germany's 40 largest cities, coupled with an average installation
 time of only 4 weeks.  This sets us apart from our competitors in the German
 DSL market -- which our customers have really come to appreciate, judging from
 our first quarter results.  I am confident that we are on the right track with
 our range of DSL products, and that this positive trend is set to continue."
     First quarter revenues were boosted by over 10,000 lines sold.  QSC
 expects to sell between 40,000 to 50,000 DSL lines in the current financial
 year.  A general contract, in which RWE Powerline and mediaWays made a binding
 commitment to order more than 9,000 DSL connections, was signed last month.
 The contract runs for a period of three years, and more than 1,000 lines will
 generate revenues in the remaining financial year.
     The successful launch of QSC-business-DSL, a new service targeted directly
 at business customers, is expected to contribute significantly to the revenues
 in the current financial year.  QSC-business-DSL, the company's first own
 end-user DSL product, is expected to exhibit strong sales potential.  To date,
 QSC had been marketing its DSL access service exclusively through resellers.
 QSC-business-DSL was introduced to the retail trade at CeBIT 2001 and is now
 selling well throughout Germany.
     QSC AG stressed that its first-quarter sales figures are based on current
 knowledge and could theoretically still be subject to change.  The definitive
 figures will be contained in the company's official first quarter report,
 which will be released on 29 May 2001.
 
     This press release includes forward-looking statements as such term is
 defined in the U.S. Private Securities Litigation Act of 1995.  These
 forward-looking statements are based on management's current expectations and
 projections of future events and are subject to risks and uncertainties.  Many
 factors could cause actual results to vary materially from future results
 expressed or implied by such forward-looking statements, including, but not
 limited to, changes in the competitive environment, changes in the rate of
 development and expansion of alternative broadband technologies and changes in
 the prices of such alternative broadband technologies, changes in government
 regulation, legal precedents or court decisions, relating, among other things,
 to line sharing, rent for co-location and unbundled local loops, the pricing
 and timely availability of leased lines, and other matters that might have an
 effect on our business, the timely development of value-added services, our
 ability to maintain and expand current marketing and distribution agreements
 and enter into new marketing and distribution agreements, our ability to
 receive additional financing if management planning targets are not met, the
 timely and complete payment of outstanding receivables from our distribution
 partners and resellers of QSC services and products, as well as the
 availability of sufficiently qualified employees.
     A complete list of the risks, uncertainties and other factors facing us
 can be found in our public reports and filings with the U.S. Securities and
 Exchange Commission.
 
     Background:
     QSC AG (Nasdaq: QSCG) (Neuer Markt: QSC) is Germany's leading alternative
 provider of DSL services. DSL technology makes use of the 'last mile' in the
 telephone network on the basis of unbundled data transmission.  Running over
 conventional copper telephone wires, DSL offers data transmission at speeds
 many times greater than are generally available today.  QSC provides corporate
 and private users with "always on" broadband access to the Internet at
 scalable, symmetrical speeds ranging from 128 kbps to 2.3 mbps.  Its network
 already covers Germany's 40 largest cities, reaching a potential market of
 over 20 million users.
     QSC has been listed on Frankfurt's Neuer Markt [QSC] and New York's NASDAQ
 [QSCG] since April 2000.  The company's IPO increased its equity capital by
 more than EUR 280 million to over EUR 420 million.
 
 

SOURCE QSC AG
    COLOGNE, Germany, April 30 /PRNewswire/ -- Prior to the release of its
 quarterly report, Cologne-based QSC AG (Nasdaq: QSCG) (Neuer Markt: QSC)
 reports an exponential sales increase for the 1st quarter of the 2001
 financial year.  QSC registered sales of over 5 million euros in the first
 three months.  First quarter 2001 revenues thus exceeded total revenues for
 the 2000 financial year.
     QSC's CEO, Bernd Schlobohm, is delighted: "This exponential increase is
 testimony to our leading position in the German market for DSL services.  It
 is also a direct result of our competitive advantage: a nationwide network,
 covering Germany's 40 largest cities, coupled with an average installation
 time of only 4 weeks.  This sets us apart from our competitors in the German
 DSL market -- which our customers have really come to appreciate, judging from
 our first quarter results.  I am confident that we are on the right track with
 our range of DSL products, and that this positive trend is set to continue."
     First quarter revenues were boosted by over 10,000 lines sold.  QSC
 expects to sell between 40,000 to 50,000 DSL lines in the current financial
 year.  A general contract, in which RWE Powerline and mediaWays made a binding
 commitment to order more than 9,000 DSL connections, was signed last month.
 The contract runs for a period of three years, and more than 1,000 lines will
 generate revenues in the remaining financial year.
     The successful launch of QSC-business-DSL, a new service targeted directly
 at business customers, is expected to contribute significantly to the revenues
 in the current financial year.  QSC-business-DSL, the company's first own
 end-user DSL product, is expected to exhibit strong sales potential.  To date,
 QSC had been marketing its DSL access service exclusively through resellers.
 QSC-business-DSL was introduced to the retail trade at CeBIT 2001 and is now
 selling well throughout Germany.
     QSC AG stressed that its first-quarter sales figures are based on current
 knowledge and could theoretically still be subject to change.  The definitive
 figures will be contained in the company's official first quarter report,
 which will be released on 29 May 2001.
 
     This press release includes forward-looking statements as such term is
 defined in the U.S. Private Securities Litigation Act of 1995.  These
 forward-looking statements are based on management's current expectations and
 projections of future events and are subject to risks and uncertainties.  Many
 factors could cause actual results to vary materially from future results
 expressed or implied by such forward-looking statements, including, but not
 limited to, changes in the competitive environment, changes in the rate of
 development and expansion of alternative broadband technologies and changes in
 the prices of such alternative broadband technologies, changes in government
 regulation, legal precedents or court decisions, relating, among other things,
 to line sharing, rent for co-location and unbundled local loops, the pricing
 and timely availability of leased lines, and other matters that might have an
 effect on our business, the timely development of value-added services, our
 ability to maintain and expand current marketing and distribution agreements
 and enter into new marketing and distribution agreements, our ability to
 receive additional financing if management planning targets are not met, the
 timely and complete payment of outstanding receivables from our distribution
 partners and resellers of QSC services and products, as well as the
 availability of sufficiently qualified employees.
     A complete list of the risks, uncertainties and other factors facing us
 can be found in our public reports and filings with the U.S. Securities and
 Exchange Commission.
 
     Background:
     QSC AG (Nasdaq: QSCG) (Neuer Markt: QSC) is Germany's leading alternative
 provider of DSL services. DSL technology makes use of the 'last mile' in the
 telephone network on the basis of unbundled data transmission.  Running over
 conventional copper telephone wires, DSL offers data transmission at speeds
 many times greater than are generally available today.  QSC provides corporate
 and private users with "always on" broadband access to the Internet at
 scalable, symmetrical speeds ranging from 128 kbps to 2.3 mbps.  Its network
 already covers Germany's 40 largest cities, reaching a potential market of
 over 20 million users.
     QSC has been listed on Frankfurt's Neuer Markt [QSC] and New York's NASDAQ
 [QSCG] since April 2000.  The company's IPO increased its equity capital by
 more than EUR 280 million to over EUR 420 million.
 
 SOURCE  QSC AG