Telekom Austria Group Announces an Update of its Cash Use Policy at its Capital Markets Day (Ad-hoc)

VIENNA, Austria, December 2  /PRNewswire-FirstCall/ -- At its Capital Markets Day today, Telekom Austria (VSE: TKA, NYSE: TKA) provided an update on its previously communicated cash use policy. According to today's announcement, Telekom Austria intends to spend about EUR 5 billion on acquisitions, share buybacks and dividends in the period from 2006 to 2009. Cash intended for acquisitions, share buybacks and dividends previously communicated for the period 2005 to 2007 amounted to EUR 3 billion.

Furthermore, Telekom Austria extended its mid-term outlook to include the period until 2009. Telekom Austria expects the compound annual growth rate of Group revenues to be approximately 2% and the compound annual growth rate for Group adjusted EBITDA to be approximately 2.5%. Net Income is expected to grow with a compound annual growth rate of approximately 13%.

The outlook for full year 2005 announced at the time of the release of the results for the third quarter remains unchanged

  Overview                        Mid-Term Targets  Mid-Term Targets
                                  2005-2009         2003-2007
                                  announced         announced
                                  December 2,       June 18
                                  2005(2)           2004
  Group Revenue CAGR                ~2%               >1%
  Group adjusted EBITDA CAGR        ~2.5%             >2%
  Net Income CAGR                  ~13%              n.a.
  Tangible CAPEX/Revenues