Croatia won their first game under new coach Mirko Jozic with a goal from Davor Vugrinic.
The Lecce star hit the winner in the 35th minute whe he advanced from behind the two strikers to accept a pass from Bosko Balaban and shoot low past Arsenal goalkeeper Alex Manninger.
Austria hit the bar in the 90th minute with a hard shot from distance by Michael Baur.
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