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TWST: Can we begin with an introduction to OMV (OTC:OMVKY. PK)?

Mr. Ruttenstorfer: OMV is an integrated oil and gas company focused on serving the markets of Central and Eastern Europe. We are based in Vienna and operate a fully integrated service, which means that as well as our downstream operations in refining and marketing to the Central and Eastern European markets, we are also active upstream in international exploration and production. In addition to Austria, our key regions include the Adriatic, North Africa, the North Sea, the Middle East and also Australia&New Zealand. Besides E&P and refining and marketing, we also have a strong Central European gas business and finally, we are also in the chemicals industry where it relates to oil or gas.

TWST: Can you tell us about the dynamics of the markets you are in and your growth strategy?

Mr. Ruttenstorfer: On the downstream side, we are very focused in terms of our growth strategy. Our market is built around the Danube river region; the Danube is some 2,800 kilometers long and forms the backbone for our supply chain. Our markets are 500 to 700 kilometers east and west of the Danube, which means that our jurisdiction encompasses territory from Southeast Germany through to the Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Bosnia, Serbia, Bulgaria and Romania. To give you another idea of the scale of this area, our market consists of around 100 million people – and it’s the only remaining growth market for oil in the Western hemisphere. In terms of oil, we have a demand of about 80 million tons with a consumer market share of about 10 percent. Our objective is to raise our market share to 20 percent by 2008, but we may hit this target earlier as we are making very strong progress. We have recently bought into a small refinery in Romania, where the Danube meets the Black Sea. This acquisition should enable us to fully utilise the full length of the Danube River as an integral part of our supply chain. On the upstream side, we are active in five core areas: Central and Eastern Europe, North Africa, the North Sea, Australia, New Zealand, and the Middle East. Our recent acquisition of the Preussag Energie International assets (a German company) added to our core regions and also gives us a presence in Latin America, i.e. Ecuador and Venezuela.

TWST: What are your plans concerning further acquisitions?

Mr. Ruttenstorfer: As I said, our plan is to double the size of the company by 2008. Achieving that by organic growth alone would be extremely challenging. We are building filling stations and we are also highly active in exploration, but if we are to meet our ambitious growth targets, acquisitions will almost certainly play a part. The Preussag acquisition and our recent acquisition of gas stations as well as refinerz and pipeline shares from BP demonstrate our commitment to well-planned, integrated M&As and there are further steps to be taken in this direction if we are to deliver on our growth strategy.

TWST: Is cash or capital a limitation at this stage to support your growth?

Mr. Ruttenstorfer: Cash can be a bottleneck because we can only afford to do really first class, quality projects. However, our gearing ratio at the end of 2002 was very low - less than 20 percent - so we have some room for manouevre there. Beyond that, we have divestment opportunities and we have also unused capital of eight million shares, but we don’t intend to come back to the capital increase in the near term.

TWST: Can you comment on the competitive environment and how you see OMV positioned vis-à-vis your peers?

Mr. Ruttenstorfer: The national oil companies are our main competitors - none of the majors are really present in all of these markets. Shell is probably the most active, but we don’t view it as a main rival – it is not in Slovenia, Croatia, Bosnia or Serbia, for example. The nationals rather than the internationals are active in these markets and as far as market cap is concerned, we are certainly the largest company among the nationals. Austria has traditionally been heavily integrated into the Central and Eastern European landscape, and as soon as the Iron Curtain fell in 1990, we were the first company to enter those markets. First of all, we entered neighboring countries like Czechoslovakia, Hungary and Slovenia, before expanding into the others. As a result, we are something of a pioneer in those markets and we have been able to exploit our ‘first-mover’ advantage. We have western-style management, accounting systems and corporate government systems, combined with a strong foothold in these new, emerging markets. I think that is an interesting combination for OMV and it’s helped us to establish a strong presence in our target market of the Danube region.