OIAG PRESS RELEASE

Government gives green light to seek strategic partner for Austrian Airlines
Rapid implementation required: ÖIAG instigates open, transparent and fair bidding process

Vienna, August 12, 2008

In its meeting today, the Council of Ministers of the Austrian Government issued the contract for the privatisation of Austrian Airlines (AUA) to Österreichische Industrieholding AG (ÖIAG). This entitles ÖIAG to sell up to 100% of its shares, ensuring an Austrian core shareholder structure with a participation of 25% plus one share. The aims defined in the contract should also safeguard Austrian interests.

In the interest of the company, its shareholders and the standing of Austria as a business location, ÖIAG welcomes this contract, which defines the direction which will safeguard the long-term future of AUA. ÖIAG had already issued a clear recommendation to AUA, based on detailed analyses carried out in close cooperation with the management of AUA, stating that the company should enter into a strategic partnership.

ÖIAG Chief Executive Officer Dr. Peter Michaelis made the following statement: “We are happy that the Government has followed our recommendation. We have a very ambitious schedule, which we will do everything within our power to implement. Should more time be necessary to reach a successful conclusion, however, we are also proceeding on the basis that the Government will make it possible for us to do this.”

Together with the company, ÖIAG will now immediately instigate all the measures necessary for the process, and launch an open, transparent and fair bidding process. International investment bank Merrill Lynch has been appointed as exclusive financial advisor in the potential sale of ÖIAG shares to a strategic partner.

For further details please contact:
Österreichische Industrieholding AG           
Anita Bauer           
Dresdner Strasse 87, 1201 Wien
T: +43/1/711 14-240
M: +43/664/13 40 333
E: Anita.bauer@oiag.at