EANS-PVR: Telekom Austria AG / Publication of an Announcement according to art. 93 BörseG with the objective of Europe-web publication

=------------------------------------------------------------------------------- Notification of voting rights transmitted by euro adhoc. The issuer is responsible for the content of this announcement. =-------------------------------------------------------------------------------

Release according to article 93 BörseG with the aim of a Europe-wide distribution

Person/company obliged to make the notification: =---------------------------------- Name: Citigroup Inc. Place: Wilmington, Delaware State: USA

Announcement According to § 91ff Austrian Stock Exchange Act

Vienna, 1 August 2016: Today, the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) was informed about the following:

1. Issuer: Telekom Austria AG 2. Reason for the notification: Acquisition / disposal of instruments Acquisition or disposal of financial/other instruments 3. Person subject to notification obligation Name: Citigroup Inc. City: Wilmington, Delaware Country: USA 4. Name of shareholder(s): Citigroup Global Markets Limited, Citigroup Global Markets Funding Luxembourg 5. Date on which the threshold was crossed or reached: 28/07/2016

6. Total positions % of voting % of voting Total of both Total number rights rights through in % (7.A+7.B) of voting attached to financial/other rights of shares (7.A) instruments issuer (7.B.1 + 7.B.2)

Resulting 3.90 % 11.71 % 15.62 % 664,500,000 situation on the date on which threshold was crossed / reached

Position of previous notification (if applicable)

Details 7. Notified details of the resulting situation:

A. Voting rights attached to shares

ISIN Code Number of voting rights % of voting rights Direct Indirect Direct Indirect (Sec 91 BörseG) (Sec 92 BörseG) (Sec 91 BörseG) (Sec 92 BörseG)

AT0000720008 25,943,824 3.90% SUBTOTAL A 25,943,824 3.90%

B 1: Financial / Other Instruments pursuant to Sec. 91a para. 1 No. 1 BörseG

Type of Expiration Exercise Number of voting % of instrument Date Period rights that may voting be acquired if rights the instrument is exercised

Call-Option 07/08/2023 NA 51,887,646 7.81% Swap 04/08/2023 NA 25,943,824 3.90%

SUBTOTAL B.1 77,831,470 11.71%

B 2: Financial / Other Instruments pursuant to Sec. 91a para. 1 No. 3 BörseG

Type of Expiration Exercise Physical / Number of % of instrument Date Period Cash Settlement voting rights voting rights

SUBTOTAL B.2

8. Information in relation to the person subject to the notification obligation: Full chain of controlled undertakings through which the voting rights and/or the financial/other instruments are effectively held starting with the ultimate controlling natural person or legal entity:

No. Name Directly Shares held Financial/other Total of controlled directly (%) instruments held both (%) by No. directly (%)

1 Citigroup Inc.

2 Citigroup 1 3.90 % 3.90% 7.80% Global Markets Limited

3 Citigroup 2 7.81% 7.81% Global Markets Funding Luxembourg

9. In case of proxy voting Date of general meeting: - Voting rights after general meeting: - is equivalent to - voting rights.

10. Additional Comments: Please note, the call option held on Citigroup Global Markets Funding Luxembourg was the result of an inter-company booking with Citigroup Global Markets Limited.

Contact: Matthias Stieber Director Investor Relations Telekom Austria Group Phone: +43 (0) 50 664 39126 E-mail: matthias.stieber@telekomaustria.com

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

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 Telekom Austria Group.

end of announcement euro adhoc =-------------------------------------------------------------------------------

(END) Dow Jones Newswires

   August 01, 2016 14:35 ET (18:35 GMT)- - 02 35 PM EDT 08-01-16