Investor Releases

BUDAPEST, May 2, 2005

Matáv (NYSE: MTA.N and BSE: MTAV.BU), the Hungarian Telecommunications Company, today announced that the change of the Group's name and brand strategy will take place within few days, upon the registration of the Court of Registry.

The Extraordinary General Meeting held on February 22, 2005 approved the decision made by the Board of Directors on January 20, on changing Matáv's name to Magyar Telekom as well as the full scale introduction of the T-brands in Hungary. Matáv Rt.'s company name will be changed to Magyar Telekom Rt.; the names of the individual business lines will follow the international T-brand structure: T-Com (former Matáv Residential Services LOB), T-Online (former Axelero), T-Mobile, T-Systems (former Matáv Business Services LOB), T-Kábel (former MatávKábelTV).

The ticker identifying the company's shares quoted on the Budapest Stock Exchange will be changed to MTELEKOM upon the registration of the Court of Registry, the ticker used on the New York Stock Exchange (MTA) will remain unchanged.

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.