Weaker Economies in Foreign Markets, Currency Effects and Further Roaming Regulation Impact Results for the First Nine Months 2009

VIENNA, Austria, November 12 -

    - Further improvement of Fixed Net operating trends with only a 1.3%
      access lines loss compared to end of September 2008

    - Mobile Communication base grows by 8.6% year-on-year to 18.5 million
      customers despite a difficult economic environment

    - Revenues decline of 6.3% to EUR 3,620.5 million primarily driven by
      lower Fixed Net and roaming revenues as well as FX currency translation

    - Strict cost management reduces operating expenses by 4.9% and limits
      EBITDA decline to EUR 1,394.6 million

    - Net income reflects impairment charges of EUR 352.0 million related to
      investments in Belarus and in the Republic of Serbia

2009 outlook for operating free cash flow of EUR 1.1 billion reiterated,
Capex cuts compensating lower EBITDA due to FX, roaming, declining prices and
impact from weaker economies

Management expects difficult market environment to prevail also in 2010

Dividend per share floor of 75 cents per share reiterated for 2009-2012

    in EUR million           3Q 09       3Q 08       % change
    Revenues                 1,231.7     1,328.0       -7.3%
    EBITDA                     489.8       538.2       -9.0%
    Operating income          -126.4       260.0        n.a
    Net income                -136.3       162.9        n.a
    Earnings per share (in
    EUR)                       -0.31        0.37        n.a
    Free cash flow per share
    (in EUR)                    0.48        0.56      -14.5%
    Capital expenditures       154.5       184.0      -16.0%       

    in EUR million               1-9M 09       1-9M 08      change %
    Revenues                     3,620.5        3,863.8        -6.3%
    EBITDA                       1,394.6        1,492.4        -6.6%
    Operating income               223.9          636.4       -64.8%
    Net income                      31.3          388.9       -92.0%
    Earnings per share (in
    EUR)                            0.07           0.88       -91.9%
    Free cash flow per share
    (in EUR)                        1.23           1.29        -5.0%
    Capital expenditures          419.8           534.3        -21.4%

                                          Sept.       Dec.        %
    in EUR million                        30, 09     31, 08     change
    Net debt                               3,781.5  3,993.3     -5.3%
    Net debt/EBITDA (12 months) excluding
    restructuring program                   2.1x     2.1x

All financial figures are based on IFRS; if not stated otherwise, all
comparisons are given year-on-year. 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.

Group Review

Vienna, November 12, 2009 - Telekom Austria Group (VSE: TKA, OTC US:
TKAGY) today announced its results for the first nine months 2009 and the
third quarter ending September 30, 2009.

Hannes Ametsreiter, CEO Telekom Austria Group, said: "The results for the
first nine months 2009 reflect weaker economies in foreign markets, negative
currency effects and further disrupting roaming regulation. Strict cost
management partly compensated for a decrease in revenues and a reduction of
capital expenditures mitigated the impact on operating free cash flow.
Operating trends of the Fixed Net segment further improved for the seventh
consecutive quarter thanks to a continuing strong uptake of product bundles.
Against a challenging background, the Mobile Communication segment proved
once again successful in growing its subscriber base to 18.5 million
customers. We reiterate our full-year 2009 outlook for the operating free
cash flow of about EUR 1.1 billion on an actual currency basis, with a
reduction of capital expenditures compensating for the shortfall of EBITDA.
We also further confirm a minimum dividend floor of EUR 0.75 per share for
the years 2009 - 2012."

Summary

Year-to-date comparison:

During the first nine months of 2009 revenues decreased by 6.3% to EUR
3,620.5 million primarily driven by lower Fixed Net revenues as a result of a
decline in voice volumes. The sale of the Fixed Net subsidiaries in the Czech
Republic, in Slovakia and in Poland also contributed EUR 29.8 million to this
decrease. Strict cost management reduced operating expenses by 4.9% and
limited the decline in EBITDA to 6.6% or EUR 1,394.6 million due to lower
contributions from both business segments.

A decline in operating income of EUR 412.5 million to EUR 223.9 million
and the drop in net income of EUR 357.6 million to EUR 31.3 million reflect
primarily impairment charges totalling EUR 352.0 million resulting from the
goodwill from the acquisition of Velcom in Belarus and for the license of Vip
mobile in the Republic of Serbia.

Operating income before impairments fell by 9.5% to EUR 575.9 million as
a higher contribution from the Fixed Net segment partly offset a lower
operating income from the Mobile Communication segment. Excluding the
impairments net income was EUR 290.3 million during the first nine months of
2009.

Capital expenditures decreased by 21.4% to EUR 419.8 million mainly
driven by a reduction of capital expenditures in the Mobile Communication
segment. Free cash flow declined by 5.0% in line with the development of free
cash flow per share which decreased to EUR 1.23. Deleveraging continued with
net debt decreasing by 5.3% to EUR 3,781.5 million at the end of September
2009 compared to year-end 2008. Excluding the impact of the provision for the
restructuring program in 4Q 2008, net debt to EBITDA (last 12 months) was
2.1x.

Quarterly comparison:

In 3Q 09 revenues declined by 7.3% to EUR 1,231.7 million as a result of
lower contributions from both segments. Reductions in operating expenses by
3.3% as well as a one-off refund received in the Fixed Net in the amount of
EUR 10.2 million mitigated the impact of lower revenues and resulted in an
EBITDA of EUR 489.8 million in 3Q 09 compared to EUR 538.2 million in 3Q 08.

Operating income in 3Q 09 fell by EUR 386.4 million to an operating loss
of EUR 126.4 million and net income declined by EUR 299.2 million to a net
loss of EUR 136.3 million compared to the same period of the previous year.
These decreases are due to impairment charges of EUR 352.0 million related to
the goodwill for the acquisition in Velcom in Belarus and the license of Vip
mobile in the Republic of Serbia. Excluding the impairment charges operating
income declined by 13.2% to EUR 225.6 million due to a lower contribution
from the Mobile Communication segment, the operating income in the Fixed Net
segment grew by 11.2% as a result of lower depreciation and amortization
charges. Excluding impairment charges net income was EUR 122.7 million in 3Q
09 compared to EUR 162.9 million in 3Q 08.

As a result of a restrictive investment policy capital expenditures
decreased by 16.0% from EUR 184.0 million to EUR 154.5 million as lower
capital expenditures in the Mobile Communication segment partly offsetting an
increase in the Fixed Net. The reduction of capital expenditures partly
compensated for a lower result from operations resulting in a decline in free
cash flow by 14.4% to EUR 213.5 million. Free cash flow per share was EUR
0.48 in 3Q 09.

Market Environment

While the sustained migration of Fixed Net voice customers to the Mobile
Communication segment has been the main challenge for several years, mobile
broadband continues to make steady inroads into the market for internet
access. However, following the introduction of attractive product bundles,
line loss decelerated significantly during recent quarters while the decline
of minutes from the Fixed net continues to lead to a loss of revenues.
Against this background the Fixed Net segment continues to focus on the
protection of cash flows by means of a market-oriented product portfolio and
attractive pricing schemes as well as a comprehensive cost-cutting program.

The Mobile Communication segment continued to show subscriber growth both
in Austria and in its international markets. Austria is regarded as a highly
developed mobile communications market characterized by fierce competition
and persistent price pressure. The international operations of the Telekom
Austria Group still offer untapped potential in terms of contract customers
and innovative data products but due to the economic downturn the growth
initially expected has not materialized. Furthermore fierce competition and
the current difficult climate in these markets led to price cuts and
declining average revenues per user (ARPU).

Regulation remains an important external factor affecting the conditions
in nearly all markets primarily impacting roaming tariffs and termination
charges. On July 1, 2009, the second round of roaming regulation took effect
mandating a significant reduction of roaming prices. Furthermore lower usage
due to the current economic environment also impacts roaming revenues.

Velcom in Belarus continues to be impacted by an ongoing devaluation of
the Belarusian Ruble. Since the beginning of the year the Belarusian Ruble
has devaluated by 31% against the Euro. The counter-measures adopted to
mitigate the negative impact include a tariff increase effective as of
mid-February 2009 as well as rebalancing of costs based on the local
currency.

The Management does not expect a near term recovery of the macro-economic
environment in Eastern and South-Eastern Europe and consequently expects the
difficult market environment to prevail also in 2010.

Outlook for Operating Free Cash Flow Reiterated, Shift from Constant
Currency to Actual Currency Basis

Including the impact from declining currencies in Telekom Austria Group's
foreign operations, the management expects full-year figures for 2009 on
actual currency basis to reach a level of EUR 4.8 billion in revenues and EUR
1.8 billion in EBITDA compared to previously expected revenues slightly
weaker than EUR 5.1 billion and an EBITDA of about EUR 1.9 billion on
constant currency basis. In order to offset the impact of a decline in EBITDA
on the free cash flow, capital expenditures might decrease to a level of up
to EUR 700 million. Therefore, the Telekom Austria Group remains committed to
an operating free cash flow (EBITDA less capital expenditures) for 2009 of
EUR 1.1 billion on actual currency basis and a distribution of 65% of net
income in form of dividends at a minimum floor of 75 cents per share.

The main reasons for the weaker outlook include foreign exchange losses,
lower roaming revenues, declining prices and the impact from weaker economies
in Telekom Austria Group's main foreign operations. The management expects
the difficult market environment to prevail also in 2010.

                                       Outlook 09        Outlook 09
                       Outlook 09      as of May 13      as of Jan. 29
                       as of Nov. 12   and August 19     and Feb. 25

    Telekom Austria    Actual currency Constant currency Constant
    Group              basis           basis*            currency basis*
    Revenues           ~ EUR 4.8 bn    Slightly weaker   ~ EUR 5.1 bn
                                       than originally
                                       expected
    EBITDA             ~ EUR 1.8 bn    ~ EUR 1.9 bn      ~ EUR 1.9 bn
    Capital
    expenditures       ~ EUR 0.7 bn    ~ EUR 0.8 bn      ~ EUR 0.8 bn
    Operating Free
    Cash Flow          ~ EUR 1.1 bn    ~ EUR 1.1 bn      ~ EUR 1.1 bn
    Dividend           65% of net      65% of net        65% of net
                       income,         income,           income,
                       DPS of 75 cent  DPS of 75 cent    DPS of 75 cent
                       minimum         minimum           minimum
    * as announced on the Capital Market Day in January 2009

Further Information

For more detailed information about the first nine months 2009 please
refer to the corresponding report on Telekom Austria Group's website at
www.telekomaustria.com/interim_reports

    Contacts:

    Elisabeth Mattes                       Peter Zydek
    Group Spokeswoman                      Head of Investor Relations
    Tel.: +43-664-331-2730                 Tel.: +43(0)59059-1-19000
    E-Mail: elisabeth.mattes@telekom.at    E-Mail: peter.zydek@telekom.at

Contacts: Elisabeth Mattes, Group Spokeswoman, Tel.: +43-664-331-2730, E-Mail: elisabeth.mattes at telekom.at ; Peter Zydek, Head of Investor Relations, Tel.: +43(0)59059-1-19000, E-Mail: peter.zydek at telekom.at