981,000 net new customers added in the first quarter

Total customer additions of 2.1 million, including acquired SunCom base

Service revenues of $4.6 billion in the first quarter of 2008, up 14% from the first quarter of 2007

$1.44 billion Operating Income Before Depreciation and Amortization (“OIBDA”) in the first quarter of 2008, up 18% from the first quarter of 2007

Contract customer churn 1.7% in the first quarter, down from 1.9% in the first quarter of 2007

Acquisition of SunCom Wireless closed February 22

•

3^rd generation UMTS/HSDPA network launched in New York City on May 5 – 3G network to lay the foundation for future growth

In the first quarter of 2008, T-Mobile USA added 981,000 net new customers, up from 951,000 in the fourth quarter of 2007, and 980,000 in the first quarter of 2007.

Contract customer net additions in the first quarter of 2008 made up 75% of customer growth, consistent with the fourth and first quarters of 2007 which were 77% and 74%, respectively.

myFaves continues to be very popular with our customers. At the end of the first quarter there were more than 5.5 million myFaves customers, up from 5 million at the end of the fourth quarter of 2007.

The acquisition of SunCom contributed 1.1 million additional customers to T-Mobile USA’s base during the quarter. The vast majority of these customers were contract customers.

Contract customers comprised 84% of T-Mobile USA’s total customer base at March 31, 2008.

Contract customer churn was 1.7% in the first quarter of 2008, down from 1.8% in the fourth quarter of 2007 and 1.9% in the first quarter of 2007.

Blended churn, including both contract and prepaid customers, was 2.6% in the first quarter of 2008, down from 2.8% in the fourth quarter of 2007 and in line with the first quarter of 2007.

T-Mobile USA reported OIBDA of $1.44 billion in the first quarter of 2008, up from $1.33 billion in the fourth quarter of 2007 and $1.23 billion in the first quarter of 2007.

The sequential increase in OIBDA was primarily due to higher customer numbers increasing service revenues.

OIBDA margin was 31% in the first quarter of 2008, up from 30% in both the fourth and first quarters of 2007.

Net income for the first quarter of 2008 was $462 million, up from $383 million in the fourth quarter of 2007 and $315 million in the first quarter of 2007.

Service revenues, consisting of contract, prepaid, and roaming and other service revenues, rose to $4.57 billion in the first quarter of 2008, up from $4.37 billion in the fourth quarter of 2007, and up from $3.99 billion in the first quarter of 2007.

The increase in service revenues year on year was primarily due to the growth in contract customers.

The acquisition of SunCom increased total revenues by $86 million in the quarter.

Total revenues, including service, equipment, and other revenues were $5.19 billion in the first quarter of 2008, up from $5.07 billion in the fourth quarter of 2007 and $4.55 billion in the first quarter of 2007.

Blended Average Revenue Per User (“ARPU” as defined in note 1 to the Selected Data, below) was $51 in the first quarter of 2008, down from $52 in the fourth and first quarters of 2007.

Contract ARPU was $55 in the first quarter of 2008, down from $56 in the fourth and first quarters of 2007.

The sequential fall in contract ARPU was primarily due to lower variable revenues from contract customers.

Data services revenues were $760 million in the first quarter of 2008, representing 16.6% of blended ARPU, or $8.50 per customer, compared to 15.8% of blended ARPU, or $8.20 per customer in the fourth quarter of 2007, and 14.3% of blended ARPU, or $7.50 per customer in first quarter of 2007.

Growth in messaging revenue continued to be the most significant driver of data ARPU. The total number of SMS and MMS messages increased to 33 billion in the first quarter of 2008, compared to 24 billion in the fourth quarter of 2007 and 16 billion in the first quarter of 2007. A major driver of the growth in messaging is the popularity of myFaves.

Strong GPRS / EDGE access and usage driven in particular by the continued strong uptake of converged devices was another significant driver for increased data revenues.

The average cost of acquiring a customer, Cost Per Gross Add (“CPGA” as defined in note 4 to the Selected Data, below) was $300 in the first quarter of 2008, the same as in the fourth quarter of 2007 and down from $310 in the first quarter of 2007.

The average cash cost of serving customers, Cash Cost Per User (“CCPU” as defined in note 3 to the Selected Data, below), was $25 per customer per month in the first quarter of 2008, the same as in both the fourth and first quarters of 2007.

Cash capital expenditures (see note 7 to the Selected Data below) were $690 million in the first quarter of 2008, compared with $1.01 billion in the fourth quarter of 2007 and $622 million in the first quarter of 2007.

The sequential fall in capital expenditures is due to fewer cell sites being built in the quarter.

T-Mobile USA continued its commitment to invest in network coverage and quality in the first quarter of 2008, adding approximately 600 cell sites. In addition to this, 2,500 cell sites were added through the acquisition of SunCom, bringing the total number of cell sites at the end of the quarter to 41,000. In the quarter T-Mobile USA also added approximately 5,000 3G (UMTS / HSDPA) capable cell sites, ending the quarter with more than 13,000 UMTS cell sites.

On May 5, 2008 T-Mobile USA launched its 3G network in New York City. The launch of the 3G network in New York enables T-Mobile USA to use the AWS spectrum acquired in 2006 and lays the foundation for future growth in this important market. At the time of launch, T-Mobile USA’s handset lineup included four UMTS-capable handsets. The introduction of further 3G-enabled handsets – including converged devices – is being planned over the course of this year. T-Mobile USA is planning to launch additional 3G markets throughout the year and to end the year with 3G coverage in 20 to 25 core markets.

•

T-Mobile ranked No. 1 in Call Quality in the Southwest region and No. 2 on average across all regions according to the J.D. Power and Associates 2008 Wireless Call Quality performance Study^SM – Volume 1 release on March 27, 2008.

•

On April 1, 2008, T-Mobile USA and RIM announced the Wi-Fi^® -enabled BlackBerry^® Pearl^TM 8120 smartphone, which provides Wi-Fi connectivity for both voice and data, as well as support for T-Mobile’s HotSpot^SM @Home service offering unlimited, nationwide calling over any accessible Wi-Fi connection and great in-home coverage.

•

On March 24, 2008, T-Mobile USA’s launched BlackBerry^® 8820 smartphone, featuring built-in GPS and support for T-Mobile’s HotSpot^SM @Home service for Wi-Fi calling.

Covered population⁸

Customers, end of period²

Thereof contract customers

Thereof prepaid customers

Net customer additions

Acquired customers

Minutes of use/contract customer/month

Contract churn

Blended churn

($)

ARPU (blended) ^1, 9

ARPU (contract)

ARPU (prepaid)

Cost of serving (CCPU)³

Cost per gross add (CPGA)⁴

($ million)

Total revenues

Service revenues^1, 9

OIBDA⁵

OIBDA margin ⁶

Capital expenditures⁷

Cell sites on-air¹⁰

2

Contract customers and prepaid customers include FlexPay^SM customers depending on the type of rate plan selected. FlexPay customers with a contract are included in contract customers, and FlexPay customers without a contract are included in prepaid customers.

Current assets:

Cash and cash equivalents

Short-term affiliate loan receivable

Short-term investment

Accounts receivable, net of allowances of $272 and $277, respectively

Accounts receivable from affiliates

Inventory

Current portion of net deferred tax assets

Licenses held for exchange

Other current assets

Total current assets

Property and equipment, net of accumulated depreciation of

$9,788 and $9,306, respectively

Goodwill

Spectrum licenses

Other intangible assets, net of accumulated amortization of $489 and $475, respectively

Other assets

Current liabilities:

Accounts payable and accrued liabilities

Current payables to affiliates

Bonds payable

Other current liabilities

Total current liabilities

Long-term payables to affiliates

Deferred tax liabilities

Other long-term liabilities

Total long-term liabilities

Minority interest in equity of consolidated subsidiaries

Commitments and contingencies

Stockholder’s equity:

Common stock

Accumulated deficit

Total stockholder’s equity

Revenues:

Contract

Prepaid

Roaming and other service

Equipment sales

Other

Total revenues

Operating expenses:

Network

Cost of equipment sales

General and administrative

Customer acquisition

Depreciation and amortization

Total operating expenses

Operating income

Other expense, net

Income before income taxes

Income tax expense

Net income

Operating activities:

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Income tax expense

Other, net

Changes in operating assets and liabilities:

Accounts receivable

Inventory

Other current and non-current assets

Accounts payable and accrued liabilities

Net cash provided by operating activities

Investing activities:

Purchases of property and equipment

Purchases of intangible assets

Short-term affiliate loan receivable

Acquisition of SunCom Wireless, net of cash acquired

Other, net

Net cash used in investing activities

Financing activities:

Repayment of short-term financial liabilities

Long-term debt borrowings from affiliates

Long-term debt repayments to affiliates

Other, net

Net cash provided by/(used in) financing activities

Change in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

OIBDA

Depreciation and amortization

Operating income

Customer acquisition costs

Plus: Subsidy loss

Equipment sales

Cost of equipment sales

Total subsidy loss

Less: Subsidy loss unrelated to customer acquisition

Subsidy loss related to customer acquisition

Cost of acquiring customers

CPGA ($ / new customer added)

Network costs

General and administrative

Total network and general and administrative costs

Plus: Subsidy loss unrelated to customer acquisition

Total cost of serving customers

CCPU ($ / customer per month)