VIENNA -- The Telekom Austria Group (VSE: TKA, NYSE: TKA) today announced the resignation of CEO Heinz Sundt as of May 23, 2006. At today’s meeting the Supervisory Board of Telekom Austria accepted the resignation of CEO Heinz Sundt as of the end of the annual general meeting to be held on May 23, 2006. Heinz Sundt will continue to support the company’s expansion into Serbia under a consultancy agreement.

At the same time, Boris Nemsic was appointed as successor of Mr. Sundt. Boris Nemsic will become Chief Executive Officer of the Group on May 24, 2006 in addition to his position as CEO of mobilkom austria. Rudolf Fischer will become Vice Chairman of the Management Board of the Group on this date in addition to his position as COO Wireline. Stefano Colombo will continue to exercise his function as CFO of the Telekom Austria Group.

“The Supervisory Board has accepted the decision of Mr. Sundt. Under his leadership the company was transformed into a modern and successful market player and became an important factor on the Austrian Stock Exchange. We are pleased to ensure the continuity of the Group with the appointment of such an excellent successor as Boris Nemsic,” said Peter Michaelis, Chairman of the Supervisory Board.

Telekom Austria AG (NYSE: TKA; Vienna: TKA)