Release of 11.07.2013

Telekom Austria Group's Macedonian subsidiary acquires LTE 800 MHz and 1800 MHz spectrum for EUR 10.3 million

Vienna, 11 July 2013: Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces that its Macedonian subsidiary, Vip operator has obtained a 10 MHz paired frequency block (total of 20 MHz) of the 800 MHz spectrum and a 15 MHz paired block (total of 30 MHz) in the 1800 MHz spectrum for a total of EUR 10.3 million.

The 800 MHz frequency band, the so called “digital dividend”, was auctioned for the first time, while the acquired blocks in the 1800 MHZ spectrum are an addition to Vip operators existing two 10 MHz paired frequency blocks (total of 40 MHz).

The sale of spectrum was conducted by the Agency of Electronic Communications of Macedonia. The spectrum was officially awarded on 10 July 2013 and has a validity of 20 years. Vip operator has to ensure 70% coverage population of the Republic of Macedonia within 6 years from the date of its entrance into force. The acquisition of 800 MHz spectrum will enable provisioning of 4G LTE services, latest by 1 August 2014.


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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)\tthe level of demand for telecommunications services or equipment, particularly with regard to access lines, traffic, bandwidth and new products;
2)\tcompetitive 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)\tthe effects of our tariff reduction or other marketing initiatives;
4)\tthe regulatory developments and changes, including the levels of tariffs, the terms of interconnection, unbundling of access lines and international settlement arrangements;
5)\tour ability to achieve cost savings and realize productivity improvements;
6)\tthe 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)\tour ability to secure the licenses we need to offer new services and the cost of these licenses and related network infrastructure build-outs;
8)\tthe progress of our domestic and international investments, joint ventures and alliances
9)\tthe impact of our new business strategies and transformation program;
10)\tthe availability, terms and deployment of capital and the impact of regulatory and competitive developments on capital expenditure;
11)\tthe outcome of litigation in which we are involved;
12)\tthe level of demand in the market for our shares which can affect our business strategies;
13)\tchanges 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.

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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