Image from a video released to the Al-Jazeera television network Saturday June 26, 2004 showing three Turkish men kidnapped by the Tawhid and Jihad movement, allegedly led by Abu Musab al-Zarqawi.(AP photo)

Iraqi insurgents holding two Turkish hostages said in a video footage showed by an Arab-language television station Al-Jazeera friday that the hostages were being released.

The two Turkish hostages were released at about 10:30 a.m. local time (0730GMT) and were on the way to their company in Iraq, Turkish officials said, adding that the release followed their company's agreement to stop doing business with Americans in Iraq.

The two hostages were reported missing on June 1.

On Tuesday, three other Turkish hostages, threatened by their captors to be beheaded, were also released.

Iraq has witnessed a spree of hostage-taking since April, during which over 40 foreigners have been kidnapped in the country, with most released while a few executed.