Investor Releases

BUDAPEST - April 22, 2004 - Matáv (NYSE: MTA.N and BSE: MTAV.BU), the leading Hungarian telecommunications service provider announces that the Board of the Hungarian National Regulatory Authority (NRA) has published its draft resolution concerning the new reference interconnection and leased line interconnection offer.

As of this year, the final phase of the approval process is public, with NRA publishing a draft resolution 30 days before the final approval. The interested parties then have 20 days to comment in writing, and NRA then has a further 10 days to consider these comments and announce its final resolution.

In accordance with the regulatory requirements, Matáv filed a new reference interconnection and leased line interconnection offer (MARIO) on January 15, 2004. This release highlights the major changes implied in the regulator's draft resolution published yesterday. Matáv will also publish the relevant changes to the draft resolution in due course. The framework of the offer remains unchanged and also includes new services available from 2004. Based on the draft resolution, new MARIO fees will be applicable from June 1, 2004.

Main changes to the reference offer:

• In December 2003, a Ministerial Decree (No 18/2003) on cost calculation was issued by the Ministry of Informatics and Communications. This modified the former decree on cost calculation. The new ministerial decree modified the requirements of the LRIC model. Matáv filed its MARIO in compliance with these new requirements. The changes resulted in a decrease to some of the prices in the reference offer.
• On the other hand, the cost of capital prescribed for Matáv Rt. has changed from 15% to 16.5% due to the macroeconomic environment.
• NRA has implied further changes to some of the fees. Matáv does not find part of these changes totally consistent with the Hungarian regulation, the European benchmarks or the reference offer of other operators.
• All the data we include in this announcement is in line with the draft resolution.
• Based on the new MARIO, service providers may offer carrier selection service for both local and Internet calls.

1. Traffic pricing

• The impact of the new draft interconnection fees published by the NRA is estimated at an average 19% decrease in tariffs compared to the former levels. The table below sets out the new and the previous per minute interconnection rates excluding VAT:

IC traffic services HUF/min	Peak - new	Off peak - new	Peak - old	Off peak - old
Local origination fee	2.42	1.27	3.70	1.42
Regional origination fee	3.48	1.82	4.87	1.87
National origination fee	4.87	2.56	5.69	2.18
Local termination fee	2.07	1.09	3.20	1.23
Regional termination fee	3.09	1.63	4.38	1.67
National termination fee	4.42	2.32	5.19	1.99

• The cost-based regional and national transit fees increase to HUF/min 0.97 and HUF/min 1.66 respectively, for both peak and off peak calls from HUF/min 0.94 and HUF/min 1.58.
• In line with the Government Decree (No. 277/2003) on reference offers and network contracts Matáv introduced minute-based Internet call origination and capacity based flat rate Internet call origination (FRIACO) services within MARIO. The monthly fee of a FRIACO service with 2 Mbit/s capacity is net HUF 260,258. The published draft fee is at the lowest level in Europe available only in one country.
• The minute-based per minute prices excluding VAT are set out in the table below:

Internet call origination HUF/min	Peak	Off peak
Local Internet origination fee	2.18	1.14
Regional Internet origination fee	3.13	1.64

2. Pricing of related services and leased line interconnection services

• Certain related services and their fees were excluded from the scope of the MARIO including preselected carrier installation monthly fee and one-off Internet routing installation fee.
• The fees of all related services are to decrease by a uniform rate of 16% compared to the pervious level. The reason for this decrease is that based on the Government Decree on reference offers and network contracts the NRA does not allow service providers to include a mark-up in their LRIC calculation for the related services.
• With respect to reference leased line services, installation fees decrease to HUF 86,348 and HUF 54,482 from HUF 87,929 and HUF 58,729, respectively. Monthly fees for the different services vary between HUF 54,000-330,000 compared to the previous HUF 59,000-300,000 range.

This investor release contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore should not have undue reliance placed upon on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors are described in, among other things, our Annual Report on Form 20-F for the year ended December 31, 2002 filed with the U.S. Securities and Exchange Commission.