Ad-hoc Release QU 1 2006

Results for the First Quarter 2006

Vienna, May 17, 2006 - Telekom Austria AG (VSE: TKA; NYSE: TKA) today announced its results for the First Quarter 2006.

IFRS is leading GAAP from 1Q 06

Group revenues increase by 15.8% to EUR 1,158.6 million

Group operating income grows by 30.7% to EUR 221.6 million

Consolidated net income increases by 39.2% to EUR 154.0 million, earnings per share grow by 45.5%

Wireline revenues grow slightly supported by an increase of Internet revenues and international wholesale

Higher subscriber numbers result in strong wireless growth

in EUR million	1Q 06	1Q 05	% change
Revenues	1,158.6	1,000.6	15.8%
Operating income	221.6	169.6	30.7%
Net income	154.0	110.6	39.2%
Adjusted EBITDA*	504.3	432.5	16.6%
Earnings per share (in EUR)	0.32	0.22	45.5%
Capital expenditures	121.8	119.2	2.2%

in EUR million	March 31, 2006	Dec. 31, 2005	% change
Net debt	2,977.4	3,113.7	-4.4%

* Adjusted EBITDA is defined as net income excluding interest, taxes, depreciation, amortization, impairment charges, dividend income, equity in earnings of affiliates, other non-operating income/expense and minority interests. This equals operating income before depreciation, amortization and impairment charges.

Full quarterly report and further information

Further inquiry note:

Martin Bredl
Telekom Austria Public Relations
Phone: +43 (0)59059 1 11001
E-Mail: martin.bredl@telekom.at

Peter E. Zydek
Telekom Austria
Head of Investor Relations
Tel.: +43 (0) 590591-19000
E-mail: peter.zydek@telekom.at

Note: All financial figures are based on U.S. GAAP; if not defined otherwise, all comparisons are givenyear-on-year