RNS Number:6279T
Koninklijke KPN NV
23 December 2003


Xantic increases efficiency        

Xantic, worldwide provider of communications services via satellites and 
maritime software, will reduce the number of employees from 680 to 433 in the 
coming three years. The company, which is owned by KPN (65%) and the Australian 
telecommunications operator Telstra (35%), wishes to achieve efficiency 
improvements by simplifying the organizational structure and by streamlining the 
business processes. The quality of the services provided to existing clients 
will continue unchanged. Xantic is reorganizing in order to maintain its leading 
position in the satellite communications services market and to be able to 
anticipate changing demands from the market.

Ir. P.AA. Eelkman Rooda, CEO of Xantic: 'The focus for the next few years is 
evident and clear. Of course we will pay attention to generating a healthy cash 
flow. In the long term Xantic will continue to service the core segments of the 
most important markets.'

The reorganization will lead to an exceptional charge for KPN which will, for 
the most part, be booked in 2003. KPN consolidates Xantic for 100%.


Corporate Communications       Investor relations

Fax: (070) 446 63 10           Fax; (070) 446 05 93
E-mail: press@kpn.com          E-mail: ir@kpn.com
  


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END
STRZGMZZKFLGFZM