Investor Releases

Budapest, August 17, 2005

Magyar Telekom (Reuters: NYSE: MTA.N, BÉT: MTEL.BU and Bloomberg: NYSE: MTA US, BÉT: MTELEKOM HB), the leading Hungarian telecommunications service provider, today announced that Elek Straub, the company's Chairman and Chief Executive Officer, exercised his option to buy 899,964 Magyar Telekom shares on August 11, 2005. As a result, the number of treasury shares held by Magyar Telekom declined from 4,347,169 to 3,447,205.

Elek Straub subsequently sold Magyar Telekom shares on the Budapest Stock Exchange through Concorde Értékpapír Rt. as follows:
date                                                     amount sold                   average price
12 August 2005             244,522                                 HUF 931
15 August 2005             167,978                                 HUF 933
16 August 2005             487,464                                 HUF 947