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World's First "Mobile City"

19th October , 2004

Europe : mobilkom austria has announced that it has made Bregenz, in the western Austrian province of Voralberg, the World``s first mobile city, enabling residents and visitors to park, shop, buy tickets and obtain information via their mobile handsets.

Inset is Dr. Boris Nemsic, CEO of mobilkom austria quoted below.

mobilkom austria used its experience in developing and rolling out innovative mobile communications solutions to provide flexible and efficient access to local services for the residents of and visitors to Bregenz. By dialing just one number, customers can register to m-parking, train/event ticketing and A1 Quick Shop services as well as access a plethora of useful information on Bregenz. Payment for all services can be made either via mobile phone bills, paybox or bank accounts.

"Following a Europe-wide bidding process, the City of Bregenz chose mobilkom austria``s ``Mobile City`` as it is the most community-friendly and secure solution," says Bregrenz Mayor Markus Linhart.

"We take the responsibilities that come with being innovators and leaders in mobile communications across Austria and beyond very seriously," says Dr. Boris Nemsic, CEO of mobilkom austria. "This means being the first to introduce new services that really add value to our customers. This was the case with UMTS and GPRS and now we are proud to be the world``s first mobile network provider to make an entire city mobile."

Customer convenience is also of crucial importance to Dr. Hannes Ametsreiter, Director of Marketing, Distribution and Customer Service for mobilkom austria: "mobilkom austria believes in technologies and applications that demonstrate an immediate benefit to customers. The project ``Mobile City`` is an important and innovative step in this direction."

Convenient and Trouble-Free Parking

mobilkom austria``s system is characterized by convenient, trouble-free parking, open to all mobile subscribers regardless of network operator, as well as the ability to park via text messages in every Austrian m-parking community.

m-parking considerably simplifies parking area management, since drivers need nothing more than their mobile to pay parking fees. One text message is all that it takes to purchase a parking voucher for any type of vehicle. Charging a parking credit ahead of time is not required.

A1 Quick Shop: Shopping around the Clock by Mobile Phone

mobilkom austria provides access to Quick Shop services - an Austrian e-commerce platform based on a network of partner retailers - to customers of all domestic mobile communications operators via text messages and WAP. Users can place orders regardless of time and place by simply sending a text message with the corresponding product code and the desired item will be delivered directly to their home by the retailer.

Visit Events without a Paper Ticket

mobilkom austria first launched A1 SMS TICKET in Austria in 2002. Since then the service has established itself as a quick and simple ticketing system on the Austrian market - in the year 2003 alone roughly 40,000 SMS TICKETS were sold. This eliminates the need to queue up at the box-office or to pick up the tickets. Simply by sending the name of the desired event or artist per text message, an electronic ticket will be sent directly onto the mobile phone.

City Information

Information about the city of Bregenz is also available to tourists and citizens via mobile handsets. By entering keywords such as "Festival" users can access the latest information about ``Bregenz Festival`` via M-Cityinfo. There are keywords relating to all important topics in Bregenz, including events and community information. In addition, customers can also subscribe to a Bregenz newsletter and be informed regularly on selected topics.

About Telekom Austria:

Telekom Austria is Austria's leading provider of telecommunications services.

It was listed on the Vienna and New York stock exchanges in November 2000. The Group has two main business areas: the wireline segment encompasses fixed line telephony, data and Internet, and the wireless segment covers mobile communications. Telekom Austria has international operations in the Czech Republic, Croatia, Slovenia and Liechtenstein.

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