Telekom Austria Buys Remaining Stake in Belarus Mobile Network

-The Telekom Austria Group says that it is buying the remaining 30% of SB Telecom, the sole owner of the Belarus based mobile network, for EUR 335 million. The deal is part of a put option agreed between the two companies when Telekom Austria brought its 70% stake in SB Telecom in October 2007.

In addition, a EUR 247.7 million portion of the total performance based deferred consideration of EUR 313.3 million is payable on October 4, 2010 as predetermined performance criteria have been fulfilled. The next evaluation date for the settlement of the remaining EUR 65.6 million of the performance related deferred payment will take place in Q1 2011.

Final settlement of the performance related consideration is expected not earlier than Q1 2012.

Telekom Austria Group will settle these obligations out of its existing cash flow. All of the above payments are included in the Group's current net debt position and will have no impact on the stated Group outlook for 2010.


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