08/19/2004

QSC enters new line of business and wins AOL as its first customer

Cologne, August 19, 2004. Cologne-based QSC AG is broadening its activities to include network services for carriers and has won AOL in Germany as its first customer in this new line of business. Beginning in October 2004, AOL will be using this nationwide telecommunication provider´s network to link broadband customers to its own infrastructure.

QSC´s entry into carrier-to-carrier business will necessitate building a platform for this purpose during the current fiscal year. These investments will also enable further Internet service providers and carriers to be served, who are expected to make a significant contribution to the company´s revenues beginning in 2005.

Queries to:
QSC AG
Arne Thull
Investor Relations
Fon: +49(0)221-6698-112
Fax: +49(0)221-6698-009
E-Mail: invest@qsc.de

Notes:
This adhoc release contains forward-looking statements pursuant to the US "Private Securities Litigation Act" of 1995. These forward-looking statements are based on current expectations and forecasts of future events by the management of QSC AG. Due to risks or mistaken assumptions, actual results may deviate substantially from those made in such forward-looking statements. The assumptions that may involve material deviations due to unforeseeable developments include, but are not limited to, the demand for our products and services, the competitive situation, the development, dissemination and technical performance of DSL technology and its prices, the development and dissemination of alternative broadband technologies and their respective prices, changes in respect of telecommunications regulation, legislation and adjudication, prices and timely availability of essential third-party services and products, the timely development of additional marketable value-added services, the ability to maintain and enlarge upon marketing and distribution agreements and to conclude new marketing and distribution agreements, the ability to obtain additional financing in the event that management´s planning targets are not attained, the punctual and full payment of outstanding debts by sales partners and resellers of QSC AG, and the availability of sufficient skilled personnel.