Press release on the Supervisory Board meeting of 3 December 2004
20.12.2004

OIAG Supervisory Board confirms
price of Telekom Austria shares

Vienna, 3 December 2004. As announced the previous day, today’s meeting of the Supervisory Board approved the placing of 17% of the shares of Telekom Austria with Austrian and overseas institutional investors. The agreed price of EUR 13.05 was at the upper bound of the indicative price range of EUR 12.8 to EUR 13.05 es-tablished during the bookbuilding process. The final price represented a premium of 1.3% on the previous day's closing price of EUR 12.88. This transaction had already been approved by the Supervisory Board meeting of 7 May 2004. Thanks to the lively interest shown by long-term investors, the company was able to meet its objective of distributing these shares as widely as possible amongst Austrian and overseas in-vestors. Some 86% of the offering was placed with European investors, with Austri-ans accounting for around 4%. Increasing the dispersion of Telekom Austria shares to around 70% not only increases their liquidity, but also makes the Vienna capital market significantly more attractive. Apart from meeting important privatisation criteria, OIAG has also been able to reduce its net debt to around EUR 729 million as a result of this transaction. This represents a major step towards the complete elimination of all OIAG’s debts.

For the time being there will be no further moves to privatise Telekom Austria, as OIAG is bound by a lock-up agreement not to sell any further Telekom Austria shares for 180 days. After this period has elapsed, further steps will be considered with a view to meeting the extensive privatisation criteria and advancing the company’s strategic interests.

In principle the Supervisory Board is in favour of selling its interest in VA Tech under the takeover offer made by Siemens Austria – provided the criteria of its privatisation mandate are met.

The Managing Board of Österreichische Post AG gave its regular report on the de-velopment of business. Against the background of the imminent liberalisation of the industry, the Supervisory Board gave its backing to Österreichische Post AG’s strat-egy of pursuing its declared objectives. The nationwide provision of postal services prescribed by the Universal Service Ordinance is assured thanks to comprehensive alternative distribution schemes.

During this meeting of the Supervisory Board, Rainer Wieltsch’s position on the Managing Board was extended until 30 June 2006.

Further information:
OIAG Corporate Communications
Anita Bauer
Mob.: +43 664 13 40 333
anita.bauer@oiag.at