13.11.2007 – 08:04

Österreichische Post AG

euro adhoc: Österreichische Post AG
quarterly or semiannual financial statement
Austrian Post: Solid development in Q1-Q3 2007

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.

9-month report

13.11.2007

Revenues +31.2%, EBIT +26.2%

• Group revenues up 31.2% compared to 2006 - Successful acquisitions in the first nine months of 2007:
• Scanpoint Europe (Germany/digitalisation and administration of documents) - meiller direct (Germany/direct mail production) - Road Parcel and Merland Expressz (Hungary/parcel services) - Scherübl (Austria/temperature-controlled special logistics) - Acquisition of parcel services providers in Holland and Belgium as at

October 1, 2007 - Purchase of a 5% shareholding in the consortium 
acquiring Austrian Post's banking partner BAWAG PSK - Earnings before
interest and tax (EBIT) climb 26.2% to EUR 118.3m - Operating cash 
flow before changes in working capital up 7.4%  to EUR 207.8m - 
Improved outlook for 2007: forecast of 25%-30% higher EBIT compared 
to 2006 - Dividend proposal to Annual General Meeting: 40% increase 
for 2007 to EUR 1.40/share

Gratifying business development Austrian Post performed very 
positively in the first nine months of 2007. Austrian Post increased 
its total revenues by 31.2%, to EUR 1,667.3m. A major contribution to
the growth in revenues (about EUR 360m) can be attributed to the 
initial inclusion of trans-o-flex (Parcel & Logistics Division), 
which was acquired at the end of 2006. On balance, revenues from the 
Mail Division were up 3.3% during the first three quarters of 2007, 
and the Parcel & Logistics Division improved by 225.1% in the same 
period. In contrast, the Branch Network Division posted a decline in 
revenues of 2.5%. Austrian Post's performance in the third quarter 
basically followed the same pattern. Total Austrian Post revenues 
improved by 34.4% in Q3 2007, to EUR 550.4m. Revenues in the Mail 
Division increased by 6.1% compared to Q3 2006, the Parcel & 
Logistics Division improved by 234.5%, whereas Branch Network 
Division revenues fell by 1.2%.

Revenue development    Q1-Q3    Q1-Q3   Change    Q3      Q3
EUR m                   2006     2007      %     2006   2007
Austrian Post Group  1,271.1  1,667.3  +31.2%   409.7  550.4
Mail Division          958.8    990.4   +3.3%   308.3  327.0
Parcel & Logistics
Division               163.5    531.6 +225.1%    52.1  174.4
Branch Network
Division               145.4    141.8   -2.5%    48.6   48.0
Other / Consolidation    3.3      3.6   +7.1%     0.7    1.0

Earnings increase by 26.2%

EUR m                Q1-Q3     Q1-Q3    Change     Q3      Q3
                      2006      2007      %      2006    2007
Total revenue      1,271.1   1,667.3   +31.2%   409.7   550.4
EBITDA               173.4     190.5    +9.9%    55.5    60.3
EBIT                  93.7     118.3   +26.2%    27.4    33.3

In the first three quarters of 2007, the EBIT (earnings before 
interest and tax) of Austrian Post increased by 26.2%, to EUR 118.3m,
in comparison to the preceding year. Accordingly, the EBIT margin 
amounted to 7.1%. In Q3 2007, Austrian Post achieved an EBIT of EUR 
33.3m, up from EUR 27.4m in Q3 2006.

All operating divisions made a positive contribution to earnings. 
EBIT at the Mail Division was EUR 188.4m, at the Parcel & Logistics 
Division EUR 20.8m, and at the Branch Network Division EUR 9.7m.

On balance, earnings before tax rose 27.2%, to EUR 123.4m, while 
profit for the period improved by 35.9%, to EUR 96.1m. Accordingly, 
earnings per share amounted to EUR 1.37 in the first three quarters 
of 2007 (Q3 2007: EUR 0.40).

Solid balance sheet structure - equity ratio of 42.6% The balance 
sheet structure of Austrian Post reflects the positive business 
development of the company in recent years. Accordingly, the equity 
ratio amounted to 42.6% at September 30, 2007. In addition, the 
financial strength of Austrian Post is extremely stable, with cash 
and cash equivalents totalling EUR 390.7m, despite acquisitions 
carried out in recent months.

Increased Cash-Flow In the period under review, operating cash flow 
before changes in working capital climbed by 7.4% compared to the 
first three quarters of the previous year, to EUR 207.8m. This 
improvement can be primarily attributed to an increase in earnings 
before tax.

After including the changes in working capital, total cash flow from 
operating activities amounted to EUR 211.3m for the first nine months
of 2007.

The cash flow from investing activities totalled minus EUR 119.7m 
during the period under review, comprising the purchase of property, 
plant and equipment amounting to EUR 70.8m, the acquisitions carried 
out in the first three quarters (Weber Escal, Scanpoint, Scherübl, 
Road Parcel, Merland Expressz and meiller direct) as well as the 
purchase of a 5% stake in the consortium acquiring BAWAG PSK.

In the first three quarters of 2007, total free cash flow was EUR 
91.6m, before the dividend payout amounting to EUR 70.0m for the 2006
financial year.

Improved outlook for 2007 Within the context of a business 
environment characterised by increasing competition, Austrian Post 
continues to expect a stable mail market for the year 2007. All in 
all, Austrian Post continues to anticipate that organic revenue will 
remain constant in the 2007 business year. Additional growth will be 
driven by the initial consolidation of new subsidiaries. Austrian 
Post has revised its original forecasts upwards, and now predicts 
that earnings before interest and tax (EBIT) will be 25%-30% higher 
in 2007 in comparison to 2006 (earlier forecast: 20%-25%). The basis 
for this expected increase is the contribution to earnings on the 
part of the new subsidiaries, as well as a further improvement in 
operating income.

Based on this favourable business development, the Management Board 
of Austrian Post will propose a 40% increase in the dividend for the 
2007 financial year, amounting to EUR 1.40 per share, to the next 
Annual General Meeting.

Events after the end of the interim reporting period As at October 1,
2007, Austrian Post acquired a 100% shareholding in Osselaer Pieters 
Colli Services (VOP), Belgium, and DDS Dedicated Distribution 
Services, Netherlands. Both companies are specialist logistics 
companies for business-to- business deliveries, focusing on combined 
freight services. Moreover, Austrian Post acquired a 100% 
shareholding in the Croatian company ST Media, legally effective as 
at October 31, 2007. ST Media operates in the delivery of unaddressed
mail items on the Croatian market. The reduction in parcel volume by 
Quelle Austria by about 7m parcels annually and the resulting changes
in the market environment are expected to have a negative impact on 
Austrian Post's operating income. Nevertheless, Austrian Post 
anticipates that its operating income in 2008 will be just slightly 
below the 2007 level, and then continually rise in the following 
years. In terms of its dividend policy, Austrian Post also expects 
further growth in its dividend.

The postponement of postal market liberalisation opens up a window of
opportunity to create a level playing field. At the end of 2006, the 
EU Commission presented its draft proposal for guidelines regulating 
the total liberalisation of the postal market. This proposal, which 
foresees a complete opening of the postal sector in 2009,was 
extensively discussed in the EU Parliament and the EU Council of 
Ministers within the framework of the co-decision procedure. The main
result of these negotiations was adoption of a two-step 
liberalisation timetable. Generally, the full-scale opening of the 
European postal sector will first take place at the beginning of 
2011. At the same time, the following member states were granted a 
two-year delay, enabling them to postpone postal sector 
liberalisation until the beginning of 2013: Cyprus, Czech Republic, 
Greece, Hungary, Latvia, Lithuania, Luxemburg, Malta, Poland, Romania
and Slovakia. Austrian Post principally welcomes the postponement of 
the market opening until 2011, enabling countries to exploit the 
window of opportunity and adapt national postal laws to a fully 
competitive market. In particular, this applies to the creation of a 
level playing field for all providers of postal services, the 
harmonisation of labour regulations and the creation of an effective 
financing mechanism to ensure universal postal services in a 
liberalised market. However, the EU Postal Directive has not yet been
formally adopted.

Vienna, 13 November 2007

end of announcement                               euro adhoc 13.11.2007 07:27:43

Further inquiry note:

Austrian Post
Investor Relations & Public Relations
Harald Hagenauer
Tel.: +43(0)57767-30401
mailto:harald.hagenauer@post.at

Public Relations:
Michael Homola
Tel.: +43(0)57767-32010
mailto:michael.homola@post.at

Branche: Transport
ISIN: AT0000APOST4
WKN: A0JML5
Index: ATX
Börsen: Wiener Börse AG / stock market

Original content of: Österreichische Post AG, transmitted by news aktuell