Outlook for 2008

The Telekom Austria Group fully reiterates its full-year outlook 2008 for the operating business as announced with the 2008 half-year results. The restructuring plan will have an impact on reported results but not on the operating business. The Telekom Austria Group continues to expect revenues to increase by approximately 5% in 2008 compared to the previous year. Excluding the planned non-cash provision for the restructuring program, EBITDA is expected to grow by about 3%, with growth from international operations overcompensating for a lower contribution from the Fixed Net segment. Operating income is expected to remain stable, excluding the impact of the restructuring program.

Outlook 2008	Expected Reported Results Including Restructuring Program	Expected Operating Performance reiterated as of Nov 10, 08	Expected Operating Performance as Announced on Feb 27, 08 ; May 14, 08 and Aug 20, 08
Telekom Austria Group
Revenues	5%	5%	5%
EBITDA	-30%	3%	3%
Operating income	-85%	Stable	Stable
Net income	Slightly negative net result	-12%	-12%
Capital Expenditures	-5%	-5%	-5%
Fixed Net
Revenues	-3%	-3%	-3%
EBITDA	Slightly negative EBITDA	-12%	-12%
Mobile Communications
Revenues	10%	10%	10%
EBITDA	10%	10%	10%

Net debt increased in 2007 mainly due to the acquisition of Velcom in Belarus. This will lead to higher interest expenses and a decline in net income by approximately 12% in 2008, excluding the impact of the planned provision for the restructuring program. Telekom Austria Group’s operating free cash flow continues to be expected to rise by about 10%.

Including the non-cash provision for the restructuring program and its accounting treatment, the Telekom Austria Group expects reported EBITDA to fall by about 30% and reported operating income to decrease by about 85%. Furthermore, due to the above described restructuring program, net result will turn slightly negative despite lower income tax expenses.

The planned provision described above will impact reported earnings in 2008, however, it will not have any effects on Telekom Austria Group’s cash flow. Thus, the Management Board has reiterated its plan to propose a dividend of at least EUR 0.75 per eligible share for the 2008 financial year to be paid following prior approval of the Annual General Meeting in 2009.

Furthermore, the set of accounting measures described above will not affect the net debt position of the company and therefore will not influence the timing of Telekom Austria Group’s share buyback program.

Disclaimer: This document contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are usually accompanied by words such as “believe,” “intend,” “anticipate,” “plan,” “expect” and similar expressions. Actual results may differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. These factors include, but are not limited to, the following:

-	the level of demand for telecommunications services or equipment, particularly with regard to access lines, traffic, bandwidth and new products;

-	competitive forces in liberalized markets, including pricing pressures, technological developments, alternative routing developments and new access technologies, and our ability to retain market share in the face of competition from existing and new market entrants;

-	the effects of our tariff reduction or other marketing initiatives;

-	the regulatory developments and changes, including the levels of tariffs, the terms of interconnection, unbundling of access lines and international settlement arrangements;

-	our ability to achieve cost savings and realize productivity improvements;

-	the success of new business, operating and financial initiatives, many of which involve start-up costs, and new systems and applications, particularly with regard to the integration of service offerings;

-	our ability to secure the licenses we need to offer new services and the cost of these licenses and related network infrastructure build-outs;

-	the progress of our domestic and international investments, joint ventures and alliances

-	the impact of our new business strategies and transformation program;

-	the availability, terms and deployment of capital and the impact of regulatory and competitive developments on capital expenditure;

-	the outcome of litigation in which we are involved;

-	the level of demand in the market for our shares which can affect our business strategies;

-	changes in the law including regulatory, civil servants and social security law, including pensions and tax law; and general economic conditions, government and regulatory policies, and business conditions in the markets we serve.

Through its expansion into the Eastern and South-eastern European region, the company operates in markets that have been experiencing political and economic change. This circumstance has affected, and may continue to affect, the activities of enterprises operating in this environment. Consequently, operations in the Eastern and South-eastern European region involve uncertainties, including tax uncertainties that typically do not exist in other markets.

Due to rounding differences deviations in subtotals and totals may occur.