Extraordinary general meeting
17.09.2004

An extraordinary general meeting held on Friday prior to the Supervisory Board meeting approved details of the privatisation mandate for VA TECH. Under the terms of this mandate, OIAG is authorised to participate in VA TECH’s planned capital increase with a view to maintaining the unity of the company and establishing an Austrian core shareholder structure. The prime objective is to position OIAG as a stabilising factor within VA TECH in order to lend additional weight to the Executive Board’s restructuring plans. The Austrian government’s schedule for the privatisation of VA TECH will be adhered to.

In the ensuing session of the Supervisory Board, the board welcomed the de-tailed privatisation mandate and the Executive Board’s intention of taking part in the planned capital increase. The necessary resolution will be taken once the actual conditions of the capital increase have been established by the privatization committee.

The Supervisory Board had a very frank and differentiated discussion of the events surrounding the failed Swisscom-Telekom Austria transaction, regretting that there had been no further opportunity to consider the project properly following the breaking-off of negotiations.

Austrian Airlines AG and Telekom Austria AG gave their regular reports on the current development of business.

As far as the investment in Telekom Austria was concerned, the Supervisory Board of OIAG confirmed that it had been authorised to place 17% of shares via the capital market. Should there be no window of opportunity for this transaction before the end of the year, the December meeting of the Super-visory Board will apply for its authorisation to be extended for a further year.

The board then heard a report about the sale of VA Erzberg GmbH using a foundation as a vehicle. This solution will not only ensure jobs in the long term, but also enable mining operations to be continued for as long as possible. Further details about the foundation will be published after the contract has been signed – probably at the beginning of October.

It is possible, though unlikely, that individual investors may wish to convert voestalpine exchangeable securities. This contingency will be dealt with when the time comes by a special committee consisting of representatives of both staff and shareholders.

The Supervisory Board took note of the Executive Board's view that it would not be necessary for OIAG to go along with a possible capital increase by OMV.

The Executive Board of OIAG informed the Supervisory Board about the results of the strategy meeting of Österreichische Post AG (Post) at the beginning of September. The medium-term plan for the Post indicated that the Post would be able to generate the necessary returns from its own resources. Against this background, it is no longer necessary to continue the search for a senior strategic partner. On the other hand, the conclusion of strategic partnerships in individual areas of business is becoming increasingly important.

The Supervisory Board approved the Executive Board’s report on the first half of 2004.
A profit of EUR 79.9 million was reported for the first half of 2004 due to a reduction in the volume of debt, the positive performance of investments, and the continuing high level of income from holdings. This result is significantly above that forecast for the entire year 2004.

Vienna, 17.9.2004

Further information:
OIAG Communications
Anita Bauer
Mob.: +43 664 13 40 333