Telekom Austria Buys ETel

VIENNA -- Telekom Austria (VSE: TKA, NYSE: TKA) today announced that the competition authorities have approved the acquisition agreed in December 2006 of 100% of the share capital of the operating companies of eTel for a purchase price of approximately EUR 90 million, subject to certain conditions. It is expected that the transaction will be closed within the next few weeks.

eTel is a European integrated operator owned by a consortium of international investors with companies in Austria and Central and Eastern Europe. eTel provides voice, Internet and data services, operates a virtual mobile network in Austria and has wholesale activities in Central and Eastern Europe. In 2005 eTel had revenues of approximately EUR 100 million.

The conditions set by the competition authorities concern primarily eTel's infrastructure, such as the sale of a fiber optics ring and the return of WLL radio licenses.

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