Release of 23.06.2014

Telekom Austria Group acquires leading cable operator in the Republic of Macedonia

Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces that it has agreed to acquire 100% of Blizoo Macedonia.

Blizoo Macedonia is the largest cable operator in the Republic of Macedonia offering fixed voice, broadband and TV services. The acquisition represents a significant step in the execution of Telekom Austria Group's convergence strategy. Telekom Austria Group has been offering mobile services in the Republic of Macedonia via its subsidiary Vip Operator since 2007.

Blizoo Macedonia has a 14% share in the fixed broadband market and a 17% share in the TV market. Blizoo Macedonia currently has 63,000 subscribers, of which 47,000 are broadband subscribers. The company's network currently covers 164,000 homes with COAX and DOCSIS 3 technology, enabling average speeds of up to 50 Mbit/s per household. 75% of Blizoo Macedonia customers subscribe to multiplay-products.

In 2013 Blizoo Macedonia revenues amounted to approximately EUR 10 million. As agreed between the buyer and seller, further details regarding the purchase price and Blizoo Macedonia financials will not be released.

Telekom Austria Group will finance the transaction via existing cashflow. The total purchase price will be paid upon closing of the transaction, which is expected for Q3 2014. The transaction is subject to merger control clearance.


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 A1 Telekom Austria Group nor any other person accepts any liability for any such forward-looking statements. A1 Telekom Austria Group 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 A1 Telekom Austria Group.

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