COMUNICADO DE TELEKOM AUSTRIA

mobilkom austria and Vodafone announce a partnership agreement

"The best of two worlds" - domestic strength of mobilkom austria

and its subsidiaries complemented by the benefits offered by

Vodafone, the world"s largest mobile communications operator.

mobilkom austria"s customer base will benefit from global services

and attractive roaming rates.

VIENNA, 7 Ene. (PRNewswire) -

Today Telekom Austria AG (VSE:TKA; NYSE:TKA) announced a

partnership agreement between its subsidiary mobilkom austria and

Vodafone (NYSE: VOD; LSE: VOD). The world"s largest mobile

communications operator, with a presence in 28 countries, 17 of which

are European, and the mobilkom austria group, present in four

European countries, have agreed to an exclusive cooperation. The

cooperation is based on the so-called "Partner Concept", already

successfully implemented with Radolinja (Finland), TDC Mobil

(Denmark), MTC (Kuwait) and Radiolinja Eesti AS (Estonia). Apart from

roaming products the partnership encompasses joint product

development, marketing and global account management as well as

procurement synergies between Vodafone and mobilkom austria group in

Austria, Slovenia and Croatia.

"We are entering into a partnership agreement, which will allow

us to integrate into a global partner network without giving up our

independence. The two operators will immediately initiate a joint

strategic product development program in certain business areas,

which will add to our respective strengths. For our customers, this

cooperation means that they are being offered the best of both

worlds," reports Boris Nemsic, CEO mobilkom austria and COO Wireless

Telekom Austria. The cooperation does not entail an equity investment

by either company, both partners will continue to operate as

independent companies.

Heinz Sundt, CEO Telekom Austria AG stated: "For the benefit of

our shareholders, this cooperation ensures that mobilkom austria will

continue to provide an attractive contribution to the financial

performance of the Telekom Austria Group."

- "Partner Agreement" - Maximizing Advantages without Financial

Involvement

Thomas Geitner, Vodafone Chief Executive for Global Products &

Services, highlights the advantages of the partnership for both

business groups: "We enter into this cooperation, which offers

advantages for Vodafone customers, shareholders and our operators, as

equal partners. As we are not operating in the regions covered by the

mobilkom austria group, we are removing the blank spaces on

Vodafone"s map of Europe. mobilkom austria"s leadership in

innovations is widely recognized which makes them a particularly

valuable partner for us." This agreement with the mobilkom austria

group marks the first partnership between Vodafone and a combined

group of operators. It is intended for the partnership to comprise

additional regions in which the mobilkom austria group might

potentially operate in the future. For Vodafone the partnership with

mobilkom austria forms a bridge towards a possible further

cooperation in Central and Eastern Europe.

- Think global, act local: Increased Cost-Effectiveness and

Global Know-how Combined with Local Customer-Focus

According to Nemsic, being in the position of market-leader in

Austria, the mobilkom austria group was able to choose its preferred

partner through which to access a global network. "Our assets in

Austria, Croatia and Slovenia with turnover and customer growth in

all subsidiaries as well as the rapid know-how transfer between the

group"s companies, has made it possible to achieve innovation

leadership in each country. Best practice sharing and intensive

exchange of know-how with Vodafone will reinforce this position in

the future," explains Nemsic. In addition to product development,

mobilkom austria will also cooperate in the areas of technical

platform development as well as key account management and

distribution with its partner. Considerable cost savings will result

not only from synergies in product development, but also from joint

purchasing of hardware and software products.

- Eurocall Provides Favorable Rates for Calls in 26 Countries

Above all, the advantages will benefit the customers - 107.5

million in the Vodafone Group and 4.3 million in the mobilkom austria

group. In the future, Vodafone customers will prefer to use the

networks of A1, VIPnet and Si.mobil as these will offer conditions

equivalent to the Vodafone home network. That means: Global services

which apply to all of the countries covered by both partners, new

services and a cross-border flat rate. "We will be launching new

roaming rates in the first half of 2003. With Vodafone Eurocall, we

can offer our customers in Austria, Croatia and Slovenia low,

transparent rates in 26 countries - basically all of Europe. In

addition to that, the customer is guaranteed a high level of

assistance and simplified access to services when abroad," says

Hannes Ametsreiter, responsible for Marketing, Distribution and

Customer Services at mobilkom austria.

mobilkom austria has the exclusive rights to the implementation

and marketing of Vodafone products within its markets (with the

exception of Liechtenstein). "For products which we develop together,

a joint branding approach will be adopted. " says Ametsreiter. "The

combination with the internationally established brand "Vodafone"

will add value to our brand A1."

- Notes to Editors

Vodafone is the largest mobile communications group in the world

represented in 28 countries and on five continents. As of September

30th, 2002, Vodafone serves over 107.5 million customers worldwide

and is one of the largest companies in the FTSE 100 and in the

Eurotop 300. Through the partner network program, which the mobilkom

austria group has now joined, Vodafone expands its footprint in

Europe. New growth opportunities are addressed through cooperations

with the strongest regional players.

Telekom Austria is the leading telecom operator in Austria. The

company is listed both on the Vienna Stock Exchange and the New York

Stock Exchange and has a market capitalisation of currently

(Euros)4.8bn. The group"s main business lines are Wireline and Mobile

Communications. mobilkom austria is the leading mobile telecom

operator in Austria and also operates in Croatia, Slovenia and

Liechtenstein. As of September 30 2002, mobilkom austria serves 4.3

million customers. mobilkom austria is a wholly owned subsidiary of

Telekom Austria.

Source: Telekom Austria Group

Contacts: Martin Bredl, Telekom Austria"s Company Spokesman, Tel:

+43 (0) 59 059 1 11001, E-Mail: martin.bredl@telekom.at; Cubitt

Consulting (UK), Peter Ogden, Tel: +44 (0)20 7367 5100, E-Mail:

peter.ogden@cubitt.com

(81132)

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