VIENNA, Austria, November 16 /PRNewswire-FirstCall/ -- Telekom Austria AG (VSE: TKA ; NYSE: TKA) today announced its results for the first nine months of 2005 ending September 30, 2005. Completion of the Mobiltel acquisition as of July 12, 2005 positively impacted the group results. Consolidated 1-9M 05 financial figures of Telekom Austria include results for Mobiltel for the period from July 12 through September 30, 2005. Mobiltel is not included in previous quarters. Year-to-date comparison: During the first nine months 2005 consolidated group revenues increased by 5.8% to EUR 3,205.8 million. Group operating income increased by 35.8% to EUR 559.4 million, benefiting from a substantial increase of 22.2% to EUR 444.4 million in the wireless segment due to the first time consolidation of Mobiltel and from an increase of 45.5% in the wireline segment to EUR 113.8 million. Group operating income before depreciation, amortization and impairment charges (adjusted EBITDA) rose by 9.9% to EUR 1,375.1 million during 1-9M 05. This increase was caused by a 20.8% rise in the wireless adjusted EBITDA to EUR 740.6 million which more than offset a 2.3% decrease in wireline adjusted EBITDA to EUR 633.4 million. Consolidated net income of Telekom Austria for the first nine months of 2005, including Mobiltel, rose by 85.6% to EUR 375.5 million, driven by higher operating income, slightly lower net interest expense and lower income tax expenses resulting from lower tax rate in Austria. Earnings per share increased from EUR 0.41 to EUR 0.76. Both segments, including Mobiltel, contributed almost equally to the increase in group capital expenditures in 1-9M 05, which rose by 23.3% to EUR 378.0 million. Quarterly comparison: Group revenues increased by 13.9% to EUR 1,191.3 million during 3Q 05. Wireline revenues decreased by 2.2% to EUR 534.4 million, primarily due to lower revenues from "data & IT-solutions including wholesale" and "switched voice monthly rental & other". Higher revenues from "Internet access & media" partially offset the decline. On a comparable basis, excluding the one time recognition of universal services in the amount of EUR 0.9 million in 3Q 04, the decline amounted to 2.0%. Wireless revenue increased by 28.1% to EUR 722.2 million, which is primarily attributable to the consolidation of Mobiltel. On a comparable basis, excluding Mobiltel, wireless revenues increased by 5.6% to EUR 595.6 million in 3Q 05. This increase was primarily driven by higher equipment revenues due to advanced stock build up from dealers for Christmas business, higher monthly rental as a result of a larger subscriber base, and higher interconnection revenues both in Austria and abroad. Group operating income rose by 53.8% to EUR 261.4 million during 3Q 05, reflecting a rise of 45.5% in the wireline and of 56.1% in the wireless segment. Group operating income before depreciation, amortization and impairment charges (adjusted EBITDA) rose by 22.2% to EUR 543.0 million. Wireline adjusted EBITDA declined by 1.5% to EUR 217.0 million. Wireless adjusted EBITDA increased by 45.3% to EUR 325.6 million in 3Q 05. On a comparable basis, excluding Mobiltel, wireless adjusted EBITDA increased by 9.5% to EUR 245.3 million. Quarterly net income rose by 89.8% to EUR 184.1 million in 3Q 05 primarily as a result of the consolidation of Mobiltel and due to the higher operating income despite higher net interest payments. Earnings per share improved by 87.4% from EUR 0.20 to EUR 0.37. Net debt increased by 53.4% to EUR 3,028.9 million primarily as a result of additional debt incurred for the acquisition of Mobiltel. The acceleration of the share buyback programme and higher capital expenditures also contributed to this increase. Consequently, net gearing increased to 105.3% at the end of September 2005. Group capital expenditures for 3Q 05 increased by 11.5% to EUR 128.5 million. For more detailed information about the financial results for the first nine months 2005 please refer to the corresponding interim report on Telekom Austria's website at http://www.telekom.at/results-qu3-2005 Contacts: Martin Bredl Head of Public Relations Phone: +43-(0)59059-1-11001 E-Mail: Peter Zydek Head of Investor Relations Phone: +43-(0)59059-1-19000 E-Mail: DATASOURCE: Telekom Austria AG CONTACT: Contacts: Martin Bredl, Head of Public Relations, Phone: +43-(0)59059-1-11001, E-Mail: . Peter Zydek, Head of Investor Relations, Phone: +43-(0)59059-1-19000, E-Mail:

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