Telekom Austria Group Accelerates Acquisition of the Remaining 25% Stake in Si.mobil d.d.

VIENNA, Austria, December 7  /PRNewswire-FirstCall/ -- mobilkom austria, the wireless subsidiary of Telekom Austria (VSE: TKA, NYSE: TKA) announced today that it has reached an agreement to accelerate the acquisition of the remaining 25% stake in its Slovenian subsidiary Si.mobil.d.d..

In February and December 2001, the Telekom Austria Group acquired 75% plus 1 share of Si.mobil for a total consideration of EUR 141.4 million. In December 2002, an agreement was reached to acquire on July 2, 2007 at the latest the remaining 25% minus 1 share held by six local shareholders for a consideration of EUR 42.8 million.

According to an agreement finalised today, Telekom Austria Group concluded the purchase of a 17.188% stake in Si.mobil from four local shareholders (Istrabenz, Intereuropa, Probanka and UPC Telemach). The company will acquire the remaining 7.812% held by two shareholders (Iskratel and Medaljon) in May 2006 for a total consideration of EUR 39.58 million. This represents a discount of 5.5% on the purchase price originally agreed upon.

"Through our concerted efforts we have been able to achieve a turnaround and materially improve the financial performance of Si.mobil. By increasing our shareholding in Si.mobil we are demonstrating our commitment in the country, completing the integration prior to plan," said Boris Nemsic, CEO of mobilkom austria and COO Wireless of Telekom Austria Group, welcoming the acceleration.

Si.mobil is already fully consolidated in the financial statements of the Telekom Austria Group.

  Contacts:
  Martin Bredl
  Head of Corporate Communications
  Tel: [phone]
  E-Mail: 

  Peter E. Zydek
  Head of Investor Relations
  Tel.: [phone]
  Email: 

DATASOURCE: Telekom Austria AG



CONTACT:  Martin Bredl, Head of Corporate Communications, Tel:

[phone], E-Mail: . Peter E. Zydek, Head of

Investor Relations, Tel.: [phone], Email: 

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