OMV Acquires International E&P Business of TUI AG

Effective January 1, 2003 OMV acquired the entire international E&P portfolio of Preussag Energie GmbH, a wholly-owned subsidiary of TUI AG. The sale of the international E&P portfolio of Preussag Energie by TUI AG is being carried out as part of the company's withdrawal from the oil and gas business. This acquisition moves OMV closer to its 2008 production goal of 160,000 barrels of oil equivalent per day (boe/d).

The purchase price is about EUR 300 million (mn) and is being financed by cash flow and bank loans. The licenses, exploration, and production sites are mainly located in OMV's core E&P regions, providing an optimal fit with the Group's growth strategy. The increase in daily production of about 20,000 boe/d for 2003 corresponds to just under one quarter of the Group's average E&P production in 2002.

The acquisition should be earnings enhancing this year, boosting income in 2003. The portfolio has strong growth potential and will bring OMV much closer to its 2008 production goal of 160,000 boe/d. At the end of 2002, OMV was producing about 100,000 boe/d.

Wolfgang Ruttenstorfer, CEO of OMV commented: "We have taken a major step forward in the direction of increased growth and shareholder value. This acquisition is fully in line with our stated growth strategy."

This acquisition will give the Group 77 mn boe proved and 172 mn boe proved and probable oil and gas reserves. These figures were determined by the internationally recognized consultancy DeGolyer and MacNaughton. At the end of 2001 OMV's proved oil and gas reserves were 340 mn boe; proved and probable reserves totaled 511 mn boe.

International Exploration and Production (E & P) portfolio significantly strengthened Helmut Langanger, member of the OMV Management Board with responsibility for E&P, states: "In addition to substantially increasing our production and reserves, this acquisition will also greatly strengthen our North Africa and Australia/New Zealand core regions. What makes the new assets attractive is their growth potential." The newly acquired portfolio includes exploration sites and oilfields in Albania, Ecuador, Qatar, Tunisia, Venezuela and Yemen. Of particular importance are a gas/condensate field as well as exploration licenses in New Zealand as these assets, together with OMV's existing portfolio in this country, should generate substantial sustained growth.

In New Zealand, the portfolio will be acquired by OMV New Zealand Pty Ltd, a wholly-owned subsidiary of the OMV Group. The other international E&P interests will be acquired by OMV Aktiengesellschaft.

The sale of the non-German E&P portfolio of Preussag Energie by TUI AG is being carried out as part of the company's withdrawal from the oil and gas business. TUI will focus on its core businesses, tourism and logistics.

The scope of the transaction will depend on approvals by the relevant government authorities, the exercise of contractual rights by partner companies, and the necessary compliance with cartel (antitrust) law.


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