euro adhoc: Telekom Austria AG / Dividend Announcements/Distribution / Telekom Austria Group’s Announcements at the Capital Market Day (Ad-hoc)

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
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Company Information/Cash Use Policy

24.04.2007

- New Cash Use Policy 2007-2010
- New Group Targets 2007-2010
- Delisting from the New York Stock Exchange

Vienna, April 24, 2007: During the Capital Market Day the Telekom
Austria Group (VSE: TKA, NYSE: TKA) today announced the new cash use
policy, the 2007-2010 Group targets and its intention to delist from
the New York Stock Exchange.

New Cash Use Policy 2007-2010 Today the Telekom Austria Group
provided an update of its previously communicated cash use policy.
The Telekom Austria Group expects to generate a free cash flow of
approximately Euro 3.3bn for the period 2007 until 2010 in addition
to approximately Euro 750mn resulting from the increase in net debt
to a level of net debt/EBITDA of 2.0x. Based on a stable dividend
pay-out ratio of 65% of net income, the Telekom Austria Group expects
to distribute about Euro 1.4bn through dividends. Approximately Euro
2.65bn will be earmarked for growth investments in Eastern and
South-Eastern Europe. If profitable growth investments are not
sufficiently available, the Telekom Austria Group intends to acquire
up to 10% of its shares within the next 24 months.

Hans Tschuden, CFO of the Telekom Austria Group said: "The new cash
use policy provides investors with an update of our future financial
strategy. It is our top priority to find a balance between
shareholder return through strong dividends and share buybacks and
investments in further growth projects. I am confident that this new
cash use policy provides a good basis to create further value for our
shareholders in the future."

Group Targets 2007-2010 Furthermore, the Telekom Austria Group
extended its mid-term outlook to include the period until 2010. The
Telekom Austria Group expects the compound annual growth rate of
Group revenues for the period 2007 until 2010 to be approximately
1%-1.5% and the compound annual growth rate for Group adjusted EBITDA
over the same period to be approximately 1.5%-2.0%. Net income is
expected to grow with a compound annual growth rate of more than 10%.
The outlook does not include any impact from the introduction of
roaming regulation.

Boris Nemsic, Chief Executive Officer of the Telekom Austria Group
said: "Our mid-term targets give you an overview about the growth
rates we expect over the period 2007 until 2010. We are confident we
will reach these goals despite the challenging, competitive
environment we experience in all our markets. We still do not have
the necessary visibility on roaming, therefore, we have not yet
included the impact in our estimates."

Telekom Austria Group Target 2007-2010
Revenue CAGR 1%-1.5%
Adjusted EBITDA CAGR 1.5%-2.0%
Net income CAGR >10%

Voluntary Delisting and Deregistration from the New York Stock
Exchange

The Telekom Austria Group also announced its intention to delist its
American Depositary Shares from the New York Stock Exchange and to
deregister from the U.S. Securities and Exchange Commission.

Hans Tschuden, Chief Financial Officer of the Telekom Austria Group
added: "Following the recent adoption of new rules by the U.S.
Securities and Exchange Commission regarding the termination of
reporting obligations under U.S. securities laws, and in light of the
low volume of Telekom Austria shares traded in New York, we have
decided to delist. This will help us to enhance red tape efficiency
and reduce costs related to the listing. However, we will remain
committed to a high-standard of corporate governance and transparency
towards our shareholders."

To complete delisting and deregistration the Telekom Austria Group
intends to file a Form 25 with the SEC on May 4, 2007 and expects the
filing to be effective as of May 14, 2007. On the very same day the
NYSE is anticipated to suspend trading of the ADSs.

The ADS program will be modified to reflect the delisting and the
ADSs will be traded over-the-counter under a Level 1 ADR Program. The
Telekom Austria Group will cover any fees and expenses incurred,
should an ADS holder wish to convert his/her ADSs and withdraw
ordinary shares from the depositary following delisting and
deregistration.

Telekom Austria will maintain its primary listing on the Vienna Stock
Exchange.

end of announcement euro adhoc 24.04.2007 14:19:00
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ots Originaltext: Telekom Austria AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Peter E. Zydek
Head of Investor Relations
Telekom Austria Group
Tel.: +43 (0) 59059 1-19001
mailto:peter.zydek@telekom.at

Elisabeth Mattes
Spokeswoman
Telekom Austria Group
Tel.: +43 (0)1 33161 2730
mailto:e.mattes@mobilkom.at

Branche: Telecommunications Equipment
ISIN: AT0000720008
WKN: 555750
Index: WBI, ATX Prime, ATX
Börsen: Wiener Börse AG / official dealing
New York / official dealing


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