23.08.2006 – 06:59

Telekom Austria AG

euro adhoc: Telekom Austria AG
quarterly or semiannual financial statement / Results for the First Half 2006

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

22.08.2006

Highlights - Group revenues increase by 15.9% to EUR 2,328.0 million
- Group operating income rises by 39.9% to EUR 414.1 million -
Consolidated net income increases by 53.2% to EUR 284.9 million,
earnings per share increase by 57.7% - Wireline segment is
characterized by strong broadband business partly offsetting ongoing
fixed-to-mobile migration - Revenue growth in all companies of the
wireless segment driven by strong subscriber additions - Withdrawal
from auction of Mobi 63 demonstrates focus on value creation and
provides scope for revision of cash use policy - Share buyback
program modified from 6% to 10% of share capital - Improved outlook
for operating income and net income for FY 2006

in EUR million        2Q 06    2Q 05 % change    1H 06    1H 05 % change
(unaudited)
Revenues            1,169.4  1,007.9   16.0%   2,328.0  2,008.5   15.9%
Operating income      192.5    126.4   52.3%     414.1    296.0   39.9%
Net income            130.9     75.4   73.6%     284.9    186.0   53.2%
Adjusted EBITDA*      477.5    398.4   19.9%     981.8    830.9   18.2%
Earnings per share     0.28     0.16   74.8%      0.60     0.38   57.7%
(in EUR)
Capital expenditure   151.1    130.3   16.0%     272.9    249.5    9.4%
in EUR million         June 30, 2006      Dec. 31, 2005       % change
Net debt                   3,096.1            3,113.7           -0.6%

* Adjusted EBITDA is defined as net income excluding interest, income
tax expense, depreciation and amortization, impairment charges,
equity in earnings of affiliates, income/loss from investments and
foreign exchange differences. This equals operating income before
depreciation, amortization and impairment charges.

The full quarterly report and further information is available on our
website under www.telekom.at/ir

end of announcement                               euro adhoc 23.08.2006 06:28:00

Further inquiry note:

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

Elisabeth Mattes
Telekom Austria Group's 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