VIENNA, Austria, May 17 /PRNewswire-FirstCall/ -- Telekom Austria AG (VSE: TKA; NYSE: TKA) today announced its results for the first quarter 2006 ending March 31, 2006. Beginning from 1Q 06 Telekom Austria will report primary financial statements under IFRS. The financial report for the year 2005 according to IFRS as well as quarterly information of 1Q 05 to 4Q 05 are available on our website at http://www.telekom.at/ During the first quarter 2006 total group revenues increased by 15.8% to EUR 1,158.6 million. Wireline revenues increased slightly by 0.9% to EUR 534.9 million in 1Q 06 supported by higher revenues from Internet access & media and wholesale voice & Internet. In the wireless business, the 30.8% increase in revenues to EUR 688.2 million was primarily attributable to the consolidation of Mobiltel. On a comparable basis, excluding Mobiltel, wireless revenues increased by 6.9% to EUR 562.4 million in 1Q 06. The increase was driven by higher traffic revenues and higher monthly rental revenues as a result of rising subscriber figures as well as higher equipment revenues. Group operating income in 1Q 06 rose by 30.7% to EUR 221.6 million. Operating income in the wireline segment increased by 10.9% to EUR 49.7 million, mainly driven by decreasing depreciation and amortization charges. Operating income in the wireless segment grew by 37.9% to EUR 171.4 million primarily as a result of the consolidation of Mobiltel. Excluding Mobiltel, operating income in the wireless segment increased by 2.9% to EUR 127.9 million despite higher depreciation and amortization and an increase of material and interconnection expenses. Operating income before depreciation, amortization and impairment charges (adjusted EBITDA) rose by 16.6% to EUR 504.3 million during 1Q 06, with a 4.4% decrease in the wireline segment to EUR 210.4 million being more than offset by a 38.4% increase in the wireless segment to EUR 293.6 million. Excluding Mobiltel, adjusted EBITDA in the wireless segment rose by 2.1% to EUR 216.6 million, despite a one-time gain from retirement of long-lived assets in the amount of EUR 6.3 million in 1Q 05. Primarily as a result of the consolidation of Mobiltel and due to a higher operating income, consolidated net income of Telekom Austria rose by 39.2% to EUR 154.0 million. Earnings per share increased by 45.5% from EUR 0.22 to EUR 0.32. Group capital expenditures for tangible and intangible assets increased by 2.2% to EUR 121.8 million during 1Q 06 compared to the same period last year. Net debt decreased by EUR 136.3 million to EUR 2,977.4 million at the end of March 2006, compared to EUR 3,113.7 million at the end of December 2005. Net gearing decreased from 106.7% at December 31, 2005 to 98.7% at the end of March 31, 2006. For more detailed information about the financial results for the first quarter 2006 please refer to the corresponding interim report on Telekom Austria's website at http://www.telekom.at/interim_reports 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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