European Urban Cycle: 22 mpg
European Extra-Urban Cycle: 39 mpg
European Combined: 31 mpg

Looks like this is for the 2.0T with DSG, but not sure how to translate the European numbers into EPA numbers ???

Usually, european extra-urban numbers are much higher than they are here for "hwy"... so the 39 might be more like 30 "hwy" for EPA estimates. Which would be about right considering the engine and weight.

For instance, the current A4 quattro 1.8T is listed as 21/30 EPA and 22/40 for the european cycles.

I would compare the A3 3.2 coming out to the VR6 DSG TT (although weight is 100 pounds more), which is EPA rated 22 city and 27 hwy. The nice thing about DSG, is that there is similar mileage to a manual, due to no torque converter and 6 gear ratios.