Investor Releases

July 25, 2002

Referring to Section 67 of the Act CXX of 2001 on the Hungarian Capital Market, Matáv (NYSE: MTA.N and BSE: MTAV.BU), the leading Hungarian telecommunications service provider makes the following announcement:

Matáv (principal offices: Krisztina krt. 55., H-1013 Budapest, registration number: Cg. 01-10-041928) has purchased 87.4% of the shares of Első Pesti Telefontársaság Rt. (principal offices: Haladás u. 5., H-1183 Budapest, registration number: Cg. 01-10-041852) by means of share purchase, and as a result of that has now a controlling interest in the Company. Through its majority owned subsidiary Investel Rt., Matáv also has further indirect interest of 3.48% in Első Pesti Telefontársaság Rt., than its whole interest is 90,88% altogether.