euro adhoc: Telekom Austria AG / Mergers - Acquisitions - Takeovers / Telekom Austria Group Submitted the Second Highest Bid in the Tender for Telekom Srpske (Ad-hoc)

--------------------------------------------------------------------------------
Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
--------------------------------------------------------------------------------

05.12.2006

Vienna, December 5, 2006: The Directorate of Privatizations of the
Republic of Srpska today announced the results of the first phase of
privatization of a 65% stake in Telekom Srpske, the second largest
fixed line, mobile and Internet service provider in Bosnia and
Herzegovina. The Telekom Austria Group (VSE: TKA, NYSE: TKA)
submitted a lower bid than its only competitor. Following today’s
announcement the Directorate invited the higher bidder to negotiate
transaction documentation, a process which will take a maximum of one
month. The Telekom Austria Group will continue to closely monitor the
outcome of the negotiations and is prepared to start negotiating with
the Directorate if the negotiations with the higher bidder fail.

Boris Nemsic, CEO of the Telekom Austria Group and CEO mobilkom
austria said: "The outcome of the tender so far is disappointing for
us, however, we are committed to deploy our capital and resources in
the region in the most efficient way to create value for our
shareholders. We expect other opportunities to arise in Bosnia and
Herzegovina in the near future and we will continue to evaluate
projects in our target region."

Stefano Colombo, Chief Financial Officer of the Telekom Austria Group
added: "The current result of the tender leaves us with financial
flexibility to pursue other attractive opportunities in the region.
We are also constantly reviewing our shareholder remuneration policy
to ensure that our shareholders receive attractive return on their
capital. As previously announced we will update the cash use policy
in spring 2007".

end of announcement euro adhoc 05.12.2006 10:07:47
--------------------------------------------------------------------------------

ots Originaltext: Telekom Austria AG
Im Internet recherchierbar: http://www.presseportal.de

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

Elisabeth Mattes
Telekom Austria Spokeswoman
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