Investor Releases

BUDAPEST - May 10, 2004 - Matáv (NYSE: MTA.N and BSE: MTAV.BU), the Hungarian Telecommunications Company, today announced that SEEF Holdings Ltd. ("SEEF"), a subsidiary of Soros Investment Capital - that has a 3.05% ownership in Stonebridge Communications AD ("Stonebridge") - has decided to exercise its put option with respect to its shareholding in Stonebridge.

The Subscription and Shareholders' Deed ("Deed") between Matáv, SEEF and CosmoTelco Added Value Services S.A. ("CosmoTelco"), dated 14 December 2000, provides for a put option which entitles SEEF to sell 50% of its shares in Stonebridge to Matáv on May 15 of each 2003, 2004 or 2005 at a price calculated according to a predetermined formula set out in the Deed. SEEF executed its put option last year and sold 50% of its stake to Matáv decreasing its ownership in Stonebridge from 6.1% to 3.05%. SEEF has now decided to sell the rest of its shareholding in Stonebridge based on the Deed.

The price formula takes into account the purchase price paid by the consortium for the shares of Makedonski Telekomunikacii AD ("MakTel"), EBITDA and the net debt of MakTel. According to the formula the SEEF put option price equals around EUR 22.5 million representing 3.05% ownership in Stonebridge.

Following completion of the transaction, which is expected to take place in June 2004, the shareholders of Stonebridge will be Matáv with a 92.56% stake and CosmoTelco with a 7.44% stake.

Stonebridge has a 51% stake in MakTel, the sole fixed line operator in Macedonia, which owns 100% of Mobimak, the country's leading mobile operator.

Soros Investment Capital is a private equity fund financed by George Soros and the Overseas Private Investment Corporation (OPIC). OPIC is a US Government organization that supports overseas investments.