euro adhoc: Austrian Airlines AG / other / ÖIAG share in Austrian Airlines sold to Lufthansa

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Privatisations

05.12.2008

Lufthansa intends to take over Austrian Airlines

The Supervisory Board of ÖIAG today agreed to sell ÖIAG's 41.56
percent share in Austrian Airlines to Lufthansa. This was preceded
by the agreement of the Supervisory Board of Lufthansa AG
("Lufthansa") to this course of action on 3 December 2008. The
signing of the contract took place after the meeting of the
Supervisory Board of ÖIAG.

The takeover of the 41.56% share in Austrian Airlines owned by ÖIAG
will take place for a price of EUR 366,268.75 with a debtor warrant.
Out of this debtor warrant, Lufthansa will pay an amount of up to
EUR 162 million, depending on the future economic development of
Austrian Airlines and the outperformance of Lufthansa shares.

Execution of these contracts depends in particular on the suspensive
conditions of their approval under Competition law, and
approval by the European Commission under assistance law of a
restructuring aid of EUR 500 million being paid by the Republic of
Austria. Approval for part of this restructuring assistance to
be made immediately, which requires a resolution by the Council of
Ministers and Supervisory Board, is also still outstanding.

Within the expiry of takeover law, Lufthansa will submit a takeover
offer to free float shareholders in Austrian Airlines. In accordance
with takeover law, and subject to verification by the Takeover
Commission, the offer price will be EUR 4.44 per share, and amount
to an approximate total of a further EUR 215 million.

In the sense of the privatisation contract, it was agreed
that Austrian Airlines should remain a legally independent company
with its head office in Austria and its own brand. Lufthansa
declared itself prepared to maintain Austrian air traffic
infrastructure as it currently stands where possible, taking
into consideration the needs of Vienna as a business location, as
well as continuing to expand this wherever commercially viable in
line with the needs of the market; the Lufthansa concept also
provides for retention of the long-haul connections so important
for the region as a business location. Apart from improved access to
international passenger flows and joint international marketing,
the benefits for Austrian Airlines will consist of using the cost
advantages and economies of scale that will result from integration
into the Lufthansa Group.

Please find further information concerning the disclosure according
to §§ 24 and 25 Media Act on www.austrian.com

end of announcement euro adhoc
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ots Originaltext: Austrian Airlines
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Corporate Communications:

Livia Dandrea-Böhm

Tel.: 051766 - 11231

Investor Relations

Thomas Krammer

Tel.: 051766 - 13311

Branche: Air Transport
ISIN: AT0000620158
WKN: 875224
Index: WBI, ATX Prime
Börsen: Wiener Börse AG / official market