Investor Releases

BUDAPEST - February 23, 2004 - Matáv (NYSE: MTA.N and BSE: MTAV.BU), the leading Hungarian telecommunications service provider, today announced that its subsidiary, Makedonski Telekomunikacii (MakTel) held its Annual General Meeting and among other items it has made a decision on dividend payment in a total amount of MKD 2.5 billion (equalling around HUF 10.7 billion using HUF/MKD rate of 4.26 as of 20 February, 2003).

At MakTel's Annual General Meeting it was decided that the company will pay a dividend of MKD 2.5 billion (HUF 10.7 billion) after the profit of year 2003. According to Macedonian Accounting Standards (MAS), MakTel on a standalone basis recorded a net income of MKD 2.6 billion for the year 2003. (MakTel Group, according to IFRS, recorded a net income of MKD 5.4 billion for the year 2003)

The receivers of the dividend and their shareholdings are Stonebridge Communications AD (51%), the Government of the Republic of Macedonia (47.12%), IFC (1.88%).

Stonebridge is entitled to an amount of MKD 1.3 billion (HUF 5.4 billion) as dividend payment. According to the current ownership structure, Matáv has 89.51% stake in Stonebridge.

The Annual General Meeting also decided on personnel changes in the Board of Directors. Horst Hermann has resigned from his position and Bence Várady-Szabó is released from his position on the expiration of his working contract. The new members of the Board of Directors are Tamás Morvai and Rolf R. Plath.

MakTel, as a legal entity, is the Macedonian parent company of MakTel Group, which is the sole fixed line and the leading mobile operator in Macedonia.

This investor news 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 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.