EANS-Adhoc

Telekom Austria AG / Telekom Austria Group successfully completes capital increase (Ad hoc)

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Capital measures/Stock Activity
24.11.2014

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY,
IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN.

Vienna, 24 November 2014: Today Telekom Austria Group announces the
end of its rights offering subscription period and completion of the
capital increase it announced on 7 November 2014. The number of
shares of Telekom Austria Group will increase by 221.5 million, from
443.0 million to 664.5 million. The net proceeds of the transaction
will amount to approx. EUR 997 million.

Based on preliminary results of the subscription period that ends
today at 24.00 CET, approx. 25.5 million new shares were subscribed
for at a price of EUR 4.57 per new share by free float investors.
Including the commitments of the core shareholders América Móvil
(including Carso Telecom) and ÖIAG the total take-up will be
approximately 99.7%. Given the high take-up during the subscription
period, there will be no rump placement. The approx. 0.3% remaining
shares not subscribed for in the subscription period or committed to
by the core shareholders will be taken-up by Deutsche Bank and sold
in the market.

América Móvil (including Carso Telecom) will subscribe for approx.
132.2 million new shares according to its approx. 264.5 million
subscription rights. ÖIAG will subscribe for approx. 63.0 million new
shares so that its participation in the share capital of Telekom
Austria after the capital increase corresponds as closely as possible
to its current pro-rata participation in Telekom Austria
(approximately 28.42%).

Trading of the new shares on the Vienna Stock Exchange is expected to
commence on 27 November 2014. Each of Telekom Austria, América Móvil
(including Carso Telecom) and ÖIAG has committed itself to a lock-up
period of six months following the first day of trading of the new
shares on the Vienna Stock Exchange.

Telekom Austria intends to use the net proceeds of the capital
increase to re-establish its target capital structure and maintain a
credit rating of at least BBB (stable) by Standard & Poor's. This
will allow Telekom Austria Group to pursue strategic investment
priorities with the aim to strengthen the Telekom Austria Group's
operational performance and to return to a sustainable growth profile