AQIM had demanded a ransom of more than $8 million, officials said. They said Austria decided to negotiate with the Al Qaida abductors rather than allow Algeria to search for the European hostages.

It was not clear whether Algeria and Tunisia also fulfilled AQIM demands. At one point, Al Qaida demanded the release of 10 members held in the two North African countries. Mali has denied receiving any ransom for Al Qaida.

AQIM kept its Austrian captives in the rebel-held area of northern Mali, officials said. They said AQIM had warned that any military operation would result in the execution of the two hostages.

Officials said AQIM has sought to abduct Western and Algerian nationals in the network's attempt to undermine regional governments and raise money. They said AQIM garnered millions of dollars in ransoms as a result of abductions over the last 20 months.

"The conditions of detention were harsh," Ebner said. "It was not at all easy, but we were treated normally."

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