Telekom Austria : Group Raises Fixed Line Prices as of 1 April 2012

Vienna, 23 January 2012 - Today, the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) informs that its Austrian subsidiary A1 Telekom Austria will introduce various fixed line price increases as of 1 April 2012.

The price increases apply to monthly fees for fixed voice telephony and include one-time charges for certain service and installation activities.

The following price increases for monthly fees will be introduced:

• Fixed voice access line "A1 Festnetz" by EUR 0.72 incl. VAT
• Fixed voice access line "A1 Festnetz Standard" by EUR 0.86 incl. VAT
• ISDN Baseline "A1 Festnetz" by EUR 2.09 incl. VAT
• ISDN Baseline "A1 Festnetz Standard" by EUR 0.29 incl. VAT
• "aonAlarmservices" by EUR 5.0 incl. VAT
  
  

The price increases are applicable to new as well as parts of the existing fixed line customer base.

Contact:
Matthias Stieber
Director Investor Relations
Telekom Austria Group
Phone: [phone]

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:
1) the level of demand for telecommunications services or equipment, particularly with regard to access lines, traffic, bandwidth and new products;
2) 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;
3) the effects of our tariff reduction or other marketing initiatives;
4) the regulatory developments and changes, including the levels of tariffs, the terms of interconnection, unbundling of access lines and international settlement arrangements;
5) our ability to achieve cost savings and realize productivity improvements;
6) 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;
7) our ability to secure the licenses we need to offer new services and the cost of these licenses and related network infrastructure build-outs;
8) the progress of our domestic and international investments, joint ventures and alliances
9) the impact of our new business strategies and transformation program;
10) the availability, terms and deployment of capital and the impact of regulatory and competitive developments on capital expenditure;
11) the outcome of litigation in which we are involved;
12) the level of demand in the market for our shares which can affect our business strategies;
13) 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 and risks related to foreign exchange rates that typically do not exist in other markets.
Due to rounding differences deviations in subtotals and totals may occur.

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