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17.12.2004 – 11:59

Telekom Austria AG

euro adhoc: Telekom Austria AG
Mergers - Acquisitions - Takeovers / Telekom Austria Acquires Call Option for the Purchase of Mobiltel

Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.
Vienna, December 17, 2004: Telekom Austria (VSE: TKA, NYSE: TKA)
announced, that it has acquired a call option to purchase Mobiltel
AD, the leading Bulgarian wireless operator. The call option gives
Telekom Austria the unilateral and irrevocable right to purchase 100%
of the share capital of Mobiltel AD for a total enterprise value of
up to EUR 1,600 million in late 2005. "We are delighted to have
secured the right to acquire Mobiltel, which we view as a quality
asset in a highly attractive market. The terms of the transaction
underline Telekom Austria’s prudent growth strategy in South Eastern
Europe and perfectly match the criteria which we have communicated
for our expansion policy" said Heinz Sundt, CEO of Telekom Austria.
The call option is priced at up to EUR 80 million which would be
offset against the purchase price. The call option is payable in 1Q
05 and is exercisable in 3Q 05. 
Up to EUR 150 million of the purchase price is contingent upon
Mobiltel achieving certain operating and financial performance
criteria in 2005 and will be payable in 2Q 06. Boris Nemsic, COO
Wireless Telekom Austria and CEO mobilkom austria, will be admitted
as a non-voting observer to management and supervisory board meetings
of Mobiltel AD. "This process will allow for regular business updates
and assist us in our decision on exercising the call option",
explained Boris Nemsic.
If the call option is exercised, Telekom Austria intends to fund the
acquisition mainly from its cash flow and in part through the
issuance of debt. Stefano Colombo, CFO of Telekom Austria reiterates:
"Telekom Austria does not intend to raise equity in order to finance
the potential acquisition and will maintain its current share buyback
As of 30 June 2004, Mobiltel had approximately 2.75 million
subscribers, making it the largest mobile communications operator in
Bulgaria with a subscriber market share of approximately 67%. For the
12 months ended 30 June 2004, Mobiltel had proforma revenues and
EBITDA of approximately EUR 455 million and EUR 290 million,
respectively. Mobiltel is owned by a consortium of Austrian and
international financial investors.
With total managed revenues of EUR 3.9 billion and 13,900 employees
in 2003 Telekom Austria is the largest telecommunications company in
Austria and also one of the leading corporations in this country.
Telekom Austria AG has been listed on both the Vienna and New York
stock exchanges since November 2000.
Lehman Brothers and Raiffeisen Investment AG are advising Telekom
Austria on this transaction.
end of announcement                    euro adhoc 17.12.2004 11:30:00 

Further inquiry note:

Hans Fruhmann
Investor Relations Telekom Austria
Tel.: +43 (0) 59059 1-20917

Martin Bredl
Telekom Austria Public Relations
Phone: +43 (0) 59059 1 11001

Branche: Telecommunications Equipment
ISIN: AT0000720008
WKN: 720008
Index: WBI, ATX Prime, ATX
Börsen: Wiener Börse AG / official dealing
New York / official dealing

Original content of: Telekom Austria AG, transmitted by news aktuell

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