Investor Releases

Budapest, March 16, 2005

Matáv (NYSE: MTA.N and BSE: MTAV.BU), the leading Hungarian telecommunications service provider hereby announces that the proportion of Matáv shares held by JP Morgan Chase Bank (JP Morgan) fell below 10%, to 9.97% on March 11, 2005. Matáv publishes the above release based on the announcement of HVB Bank Hungary Rt., the Hungarian custodian bank of JP Morgan. JP Morgan is the depositary bank for Matáv ADRs, and exercises its ownership rights on behalf of the beneficial ADR owners.

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, 2003 filed with the U.S. Securities and Exchange Commission.