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  announcement.

6-month report

18.08.2010

Results for the first half 2010

- Continued challenging operating environment driven by fierce 
competition, regulatory induced pressure and macro-economic headwinds
- Stabilization of Fixed Net line losses to 6,000 in 2Q 2010 vs. 
12,600 in 2Q 2009 - Further Mobile Communication subscriber growth of
5.9% to 19.2 mn customers - Slow-down of Group revenue decline to 
-3.9% due to lower revenue reduction in the Fixed Net and the Mobile 
Communication segments - Group EBITDA declines by 8.3% due to higher 
revenue related Fixed Net expenses and lower mobile revenues, 
cushioned by cost reductions - Free cash flow generation remains 
strong with EUR 365.2 mn - Including impact from merger of domestic 
operations the management expects revenues of approx. EUR 4.7 bn and 
an EBITDA of EUR 1.60 to 1.65 bn for FY 2010 - DPS floor of EUR 0.75 
reiterated

in EUR million   2Q 10    2Q 09  % change    1H 10    1H 09 % change
Revenues       1,168.7  1,191.7     -1.9%  2,294.7  2,388.8    -3.9%
EBITDA           403.8    450.0    -10.3%    829.7    904.8    -8.3%
Operating income 134.2    170.2    -21.2%    300.5    350.3   -14.2%
Net income        68.7     82.3    -16.5%    159.9    167.6    -4.6%
Earnings per share
(in EUR)          0.16     0.19    -16.4%     0.36     0.38    -4.6%
Free cash flow per share
(in EUR)          0.45     0.45      0.8%     0.83     0.75    10.8%
Capital
expenditures     160.1    149.3      7.2%    296.5    265.3    11.8%

in EUR million         Jun. 30, 2010    Dec. 31, 2009     % change
Net debt                     3,590.3          3,614.8        -0.7%
Net debt/EBITDA (12 months)     2.1x             2.0x

The full report and further information is available on our website 
at www.telekomaustria.com/ir/current-results.php

end of announcement                               euro adhoc

Further inquiry note:

Matthias Stieber
Director Investor Relations
Tel.: +43 (0) 50 664 39126
mailto:matthias.stieber@telekomaustria.com

Elisabeth Mattes
Telekom Austria Group's Spokeswoman
Tel.: +43 (0) 664 66 39187
mailto:elisabeth.mattes@telekomaustria.com

Branche: Telecommunications
ISIN: AT0000720008
WKN: 555750
Index: WBI, ATX Prime, ATX
Börsen: Wien / official market