Vienna, 16 July 2015

Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces its results for the first half of 2015, ending 30 June 2015.

Highlights

• Group revenue stable at EUR 1,938.8 mn reported (clean: EUR 1,975.1 mn) beating company consensus of EUR 1,929.3 mn
• Group EBITDA comparable growth of 7.4% to EUR 665.3 mn (clean: EUR 663.2 mn) on the back of stringent cost cutting and regulatory cost declines; beats company consensus of EUR 653.1 mn
• Austria: 6.2% clean EBITDA comparable growth despite intensified competition in the mobile market
• International markets burdened by FX effects as well as macro headwinds and price pressure
• Planned acquisition of Amis will allow convergence in Slovenia
• Consolidation in the Republic of Macedonia through merger with ONE approved
• Net income of EUR 171.4 mn
• Group revenues outlook for 2015 revised to approx. flat development, mainly due to CEE (on a constant currency basis except for Belarus); outlook for CAPEX* of EUR 700 – 750 mn and intended dividend of EUR 0.05/share** unchanged

in EUR millionQ2 2015Q2 2014% change1-6M 20151-6M 2014% changeRevenues982.8963.02.1%1,938.81,939.00.0%EBITDA comparable326.8299.49.1%665.3619.47.4%Operating income121.0-260.6n.m.260.8-163.2n.m.Net income78.6-305.1n.m.171.4-264.3n.m.Cash flow generated from operations262.3224.516.8%534.5373.443.1%Earnings per share (in EUR)0.11-0.70n.m.0.24-0.63n.m.Free cash flow per share (in EUR)0.17-0.01n.m.0.400.11263.0%Capital expenditures*152.8229.5-33.4%273.9329.0-16.7%

in EUR million30 Jun 201531 Dec 2014% changeNet debt2,508.02,693.3-6.9%Net debt / EBITDA comparable (12 months)1.9x2.1xn.m.All financial figures are based on IFRS; if not stated otherwise, all comparisons are given year-on-year. EBITDA comparable is defined as net income excluding financial result, income taxes, depreciation and amortisation, restructuring and impairment charges.

• Does not include investment in spectrum and acquisitions. ** Intended proposal to the Annual General Meeting 2016. *** The 2014 comparison period was adjusted according to IAS 8, see Earnings Release for the First Half 2015, page 33 **** As of 31 December 2014 long-term financial investments, instalment sales receivables and financial leasing are no longer included in the calculation of net debt; comparative figures have been restated accordingly.

Interim Results

- Full quarterly report and further information

**Disclaimer for forward-looking statements: ** This document contains forward-looking statements. These forward-looking statements are usually accompanied by words such as "believe", "intend", "anticipate", "plan", "expect" and similar expressions. Actual events 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. Neither Telekom Austria nor any other person accepts any liability for any such forward-looking statements. Telekom Austria will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This report does not constitute a recommendation or invitation to purchase or sell securities of Telekom Austria.