Deutsche Telekom AG - The 2009 financial year

Deutsche Telekom AG (formerly T-Online International AG (prior to merger)). In May 2001, the shareholders’ meeting approved the intro- duction of the 2001 Stock Option Plan, resulting in the granting of stock options in August 2001 and July 2002. The merger of T-Online International AG into Deutsche Telekom AG became effective upon entry in the commercial register on June 6, 2006. Under the merger agreement, as of this date Deutsche Telekom AG granted rights equivalent to the stock options awarded by T-Online Inter- national AG. When exercising a stock option, the holders of such rights receive 0.52 shares in Deutsche Telekom AG. The Board of Management of Deutsche Telekom AG has made use of the possibility of a future cash compensation provided for under the merger agreement and the option terms and conditions. The table below shows the changes in outstanding options issued by the former T-Online International AG: T-Online International AG (prior to merger) 2001 SOP Stock options (thousands) Weighted average exercise price (€) Stock options outstanding/ exercisable at January 1, 2009 2,840 10.30 Granted 0 – Exercised 0 – Forfeited 494 10.31 Stock options outstanding/ exercisable at December 31, 2009 2,346 10.30 The characteristics of the options outstanding/exercisable as of the reporting date are as follows: T-Online International AG (prior to merger) Options outstanding/exercisable as of Dec. 31, 2009 Range of exercise prices (€) Number (thousands) Weighted average remaining contractual life (years) Weighted average exercise price (€) 10 – 20 2,346 2.1 10.30 T-Mobile USA. Prior to the acquisition on May 31, 2001 of T-Mobile USA (formerly VoiceStream and Powertel), the companies had granted stock options to their employees under the 1999 Management Incentive Stock Option Plan (MISOP). These plans were combined as of January 1, 2004 into a single T-Mobile plan. The exchange ratio for VoiceStream shares was 3.7647 per share and for Powertel shares 2.6353 per share. The plan has now expired and no more options can be issued. The table below shows the changes in outstanding options issued by T-Mobile USA: T-Mobile USA Stock options (thousands) Weighted average exercise price (USD) Stock options outstanding/ exercisable at January 1, 2009 6,060 23.00 Granted 0 – Exercised 247 8.88 Forfeited 410 23.07 Expired 0 – Stock options outstanding/ exercisable at December 31, 2009 5,403 23.64 The characteristics of the options outstanding/exercisable as of the report- ing date are as follows: T-Mobile USA Options outstanding/exercisable as of Dec. 31, 2009 Range of exercise prices (USD) Number (thousands) Weighted average remaining contractual life (years) Weighted average exercise price (USD) 3.81 – 15.19 1,202 2.3 13.06 15.20 – 30.39 3,617 0.8 25.87 30.40 – 34.19 524 0.4 31.00 34.20 – 38.00 60 0.1 37.04 5,403 1.1 23.64 195Consolidated financial statements Notes