30 June

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Mid-year report

mobilezone holding ag

2003 30 June Mid-year report Mid-year report of the Board of Directors

2

Key figures Group

3

Consolidated income statement

4

Consolidated balance sheet

5

Consolidated cash flow statement ( condensed )

6

Consolidated statement of changes in equity

7

Segment information

7

Notes to the consolidated interim financial statements

8

mobilezone Group

Mid-year report as at 30 June 2003

Dear Shareholders, Ladies and Gentlemen : The consolidated interim financial statements for the mobilezone Group are characterized by the contrasting development in the two segments of Switzerland and Germany. While the operating profit more than doubled in Switzerland in comparison to the previous year, the situation has again deteriorated in Germany. Overall, the Group was able to achieve a positive operating result of CHF 3.6 million again ( previous year CHF –10.3 million ) and a positive consolidated net result of CHF 0.8 million ( previous year CHF –11.9 million ). Shareholders’ equity amounted to CHF 17.8 million ( 24.7% of total assets ) as at 30 June 2003 and interest-bearing liabilities were reduced by CHF 0.7 million to CHF 17.8 million. The continuing weakness of the economic environment in Germany and the significant deterioration in the profit situation resulted in provisional insolvency proceedings being instituted against Otto Boenicke GmbH & Co. at the beginning of August. The Group’s other operational German company, Tebbe Harms Kleen GmbH & Co.KG, which recorded a positive result, is not affected by this development. The deconsolidation of Boenicke is not expected to have any significant influence on the second semester result. However, the effects on the structure of the balance sheet ( debt equity ratio and net debt ) are expected to be positive. As previously announced, after parting company with the unprofitable German subsidiary, the Group can now focus its full concentration on business in the profitable Swiss market.

Outlook mobilezone is confident about the second semester. On the one hand the losses in Germany will cease to apply, on the other hand a pleasing second semester is expected in Switzerland in view of the very good results in July and August. In addition to a large number of product innovations, the launches of NOKIA N-Gage ( 8 October 2003 ) and Vodafone live by Swisscom ( mid-November 2003 ) will provide a further boost to Christmas sales. The opening of new branches planned for the second half of the year in Basel ( at Claraplatz and Main Railway Station ) and Zurich ( Bahnhofstrasse ) will lend even more strength to mobilezone’s market position.

Regensdorf, 12 September 2003

Charles Gebhard

Ruedi Baer

Chairman of the Board

Delegate and CEO

Mid-year report 30 June 2003

mobilezone holding ag

2

mobilezone Group

Key figures

Key figures Group

30 / 06 / 2003

30 / 06 / 2002

( million CHF ) Revenues

167.0

159.7

Net sales

152.2

146.2

EBITDA

5.8

EBIT

3.6

– 10.3 1)

2.3

Net profit / loss for the year

0.8

– 11.9 1)

30 / 06 / 2003

31 / 12 / 2002

Shareholders’ equity

17.8

17.2

as a percentage of total assets

24.7 %

18.9 %

577

590

Number of employees whereof in Switzerland

288

275

whereof in Germany

289

315

191

202

Number of shops whereof in Switzerland whereof in Germany 1)

88

89

103

113

after impairment of goodwill of CHF 10.9 million

Mid-year report 30 June 2003

mobilezone holding ag

3

mobilezone Group

Consolidated income statement

1 January to 30 June

2003

2002

( in CHF 000 ) Revenues

166,970

159,731

Sales deductions including VAT

– 14,794

– 13,516

Net sales

152,176

146,215

– 121,657

– 118,184

– 16,592

– 17,147

– 8,087

– 8,629

5,840

2,255

– 1,896

– 1,516

Cost of materials and merchandise Personnel costs Other operating costs ( net ) Operating profit before depreciation and amortization ( EBITDA ) Depreciation of property, plant and equipment Amortization of intangible assets

– 300

– 230

Impairment of intangible assets

0

– 10,850

Operating profit / loss ( EBIT )

3,644

– 10,341

– 1,379

– 980

331

286

2,596

– 11,035

Financial expenses Financial income Profit / loss before income taxes Income tax expense

– 1,801

– 883

795

– 11,918

( in CHF )

( in CHF )

Earnings per share – basic

0.02

– 0.35

Earnings per share – diluted

0.02

– 0.35

Net profit / loss for the year

Mid-year report 30 June 2003

mobilezone holding ag

4

mobilezone Group

Consolidated balance sheet

30 / 06 / 2003

31/ 12 / 2002

Land and buildings

5,143

4,843

Other property, plant and equipment

9,071

9,429

Intangible assets

( in CHF 000 ) ASSETS

2,058

2,100

Other financial assets

540

1,641

Non-current assets

16,812

18,013

Inventories

18,765

24,746

Trade accounts receivable

19,031

28,864

Other accounts receivable

8,384

7,843

Cash and cash equivalents

9,161

11,173

Current assets

55,341

72,626

Total assets

72,153

90,639

LIABILITIES AND SHAREHOLDERS’ EQUITY Share capital

3,560

3,560

Additional paid-in capital ( share premium )

21,317

21,317

Accumulated deficits

– 7,067

– 7,716

Shareholders’ equity

17,810

17,161

Bank loans

1,851

1,767

Shareholder loans

1,500

7,000

Finance lease liabilities

6,517

6,200

Deferred tax liabilities

1,959

1,938

Advances received

1,195

1,599

552

829

13,574

19,333

Bank loans

2,344

3,463

Shareholder loans

5,500

0

Finance lease liabilities

134

124

Trade accounts payable

22,695

44,495

2,269

825

Provisions Non-current liabilities

Current tax liabilities Other current liabilities

7,827

5,238

Current liabilities

40,769

54,145

Total liabilities and shareholders’ equity

72,153

90,639

Mid-year report 30 June 2003

mobilezone holding ag

5

mobilezone Group

Consolidated cash flow statement ( condensed )

1 January to 30 June

2003

2002

1,519

– 6,510

( in CHF 000 ) Net cash provided by / used in operating activities Acquisitions of subsidiaries

– 446

– 10,273

Other investing activities

– 1,500

– 1,587

Net cash used in investing activities

– 1,946

– 11,860

Issuance of new shares

0

7,357

Other financing activities

– 1,851

5,056

Net cash used in / provided by financing activities

– 1,851

12,413

266

– 40

Net decrease in cash and cash equivalents

– 2,012

– 5,997

Cash and cash equivalents as at 1 January

11,173

16,541

9,161

10,544

Exchange rate fluctuations

Cash and cash equivalents as at 30 June

Mid-year report 30 June 2003

mobilezone holding ag

6

mobilezone Group

Consolidated statement of changes in equity

Development of shareholders’ equity ( in CHF 000 )

Share capital

31/ 12 / 2001

3,350

13,898

210 —

Capital increase from authorized capital Net loss Translation adjustments

Additional Accumulated paid-in capital deficits /retained earnings

Translation adjustments

Total

16,749

0

33,997

7,147

—

—

7,357

—

– 11,918

—

– 11,918

—

—

—

– 41

– 41

30 / 06 / 2002

3,560

21,045

4,831

– 41

29,395

31/ 12 / 2002

3,560

21,317

– 7,666

– 50

17,161

Net profit

—

—

795

—

795

Translation adjustments

—

—

—

– 146

– 146

3,560

21,317

– 6,871

– 196

17,810

30 / 06 / 2003

mobilezone Group

Segment information

1 January to 30 June mobilezone Group

( in CHF 000 )

mobilezone Switzerland

mobilezone Germany

Group management / internal eliminations

2003

2002

2003

2002

2003

2002

2003

2002

Revenues

166,970

159,731

118,905

113,680

50,664

46,051

– 2,599

—

Net sales

152,176

146,215

109,358

105,831

45,417

40,384

– 2,599

—

5,840

2,255

8,858

4,532

– 2,619

– 1,623

– 399

– 654

3,644

10,341 1)

– 3,109

12,851 1)

– 399

– 654

EBITDA EBIT

–

7,152

3,164

–

Business segments are identical to geographical segments. 1)

includes impairment of goodwill of CHF 10,850,000.

Mid-year report 30 June 2003

mobilezone holding ag

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mobilezone Group

Notes to the consolidated interim financial statements

1

Accounting policies The accounting policies applied in the interim fincial statements correspond to those set out in the 2002 annual report and are in agreement with the International Financial Reporting Standards ( IFRS ). The unaudited interim financial statements have been prepared in accordance with IAS 34.

2

Changes in the scope of consolidation As per 1 January 2003, the scope of consolidation was expanded by the acquisition of Europea Trade AG and Premium Time AG, which were merged as per 1 January 2003. The purchase price, paid in cash, amounted to CHF 2.0 million. It corresponded to the net asset value of the two companies as per 31 December 2002 and therefore no goodwill resulted from this acquisition. The net cash outflow related to this acquisition in the period under review amounted to CHF 0.4 million, net of a prepayment of CHF 1.1 million with the cash and cash equivalents acquired. The contribution of the companies acquired to consolidated net sales was CHF 14.1 million. Their contribution to net earnings was insignificant.

3

Financing activities In the period under review, bank loans of CHF 1.2 million were repaid. Shareholder loans of CHF 5.5 million were reclassified to current liabilities due to the Companys intention to repay these loans in the second half-year.

4

Other disclosures in accordance with IAS 34 No significant unusual events occurred during the reporting period with the exception of the acquisitions mentioned in Note 2. Management is not aware of any significant contingent liabilities requiring disclosure. As regards seasonality, the second half-year normally shows higher revenues and earnings compared to the first half-year because of stronger sales during the Christmas period.

5

Subsequent events This report was approved by the Board of Directors on 11 September 2003. On 6 August 2003 the provisional insolvency procedure was opened for the subsidiaries Otto Boenicke GmbH & Co. and Otto Boenicke Vertriebsgesellschaft mbH. Since the Group still controlled these businesses as per 30 June 2003, they were fully consolidated. They contributed a negative EBIT of CHF 3.5 million and net sales of CHF 21.9 million to the consolidated interim income statement. The two companies will be excluded from the scope of consolidation as from 1July 2003. No significant effects of the de-consolidation are expected on the consolidated results for the second half-year. The effects on the structure of the balance sheet (debt equity ratio and net debt) are expected to be positive.

Mid-year report 30 June 2003

mobilezone holding ag

8

Company addresses mobilezone holding ag Riedthofstrasse 124 CH-8105 Regensdorf Phone ++ 41 ( 0 ) 43 388 77 11 Fax ++ 41 ( 0 ) 43 388 77 12 E-mail: mobilezoneholding @ mobilezone.ch www.mobilezoneholding.ch Investor Relations : Wolfgang Gross Media Relations : Ruedi Baer mobilezone ag Riedthofstrasse 124 CH-8105 Regensdorf Phone ++ 41 ( 0 ) 43 388 77 11 Fax ++ 41 ( 0 ) 43 388 77 12 E-mail: info @ mobilezone.ch www.mobilezone.ch globalzone ag Riedthofstrasse 124 CH-8105 Regensdorf Phone ++ 41 ( 0 ) 43 388 77 11 Fax ++ 41 ( 0 ) 43 388 77 12 E-mail : info @ mobilezone.ch www.globalzone.ch Europea Trade AG Riedthofstrasse 124 CH-8105 Regensdorf Phone ++ 41 ( 0 ) 43 388 77 11 Fax ++ 41 ( 0 ) 43 388 77 12 E-mail: info @ mobilezone.ch Jamba ! AG ( Schweiz ) Riedthofstrasse 124 CH-8105 Regensdorf Phone ++ 41 ( 0 ) 43 388 77 11 Fax ++ 41 ( 0 ) 43 388 77 12 E-mail : michael.federspiel@ jamba.net www.jamba.ch Tebbe Harms Kleen GmbH & Co. KG Tiefenbachstraße 5 D- 83734 Hausham Phone ++ 49 ( 0 ) 8026 92 95 11 Fax ++ 49 ( 0 ) 8026 92 95 15