Investor Releases

Budapest, March 1, 2011 15:00

Magyar Telekom (Reuters: MTEL.BU and Bloomberg: MTELEKOM HB), the leading Hungarian telecommunications service provider, announces that from today, after the conclusion of the deed of sale agreement on July 20, 2010, the Competition Office approval and the successful closing of the year Daten-Kontor Kft. continues its operation as a 100% Magyar Telekom subsidiary. The IT company further strengthens the IT services portfolio of the Magyar Telekom Group.

From March 1, 2011 Daten-Kontor Kft. continues its operation as a 100% Magyar Telekom subsidiary within Magyar Telekom’s Business Services Business Unit (T-Systems). The new subsidiary, together with IQSYS Zrt. that has a similar service portfolio and is responsible for applications, will strengthen each other in many areas and may expand their scope of activities to new markets. Daten-Kontor develops, installs and operates IT applications from two sites in Budapest and Pécs. In 2010 the audited revenue of Daten-Kontor Kft. was HUF 2.7 billion and its EBITDA was HUF 340 million. The group level consolidated revenue of Daten-Kontor exceeded HUF 3 billion.

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, 2009 filed with the U.S. Securities and Exchange Commission.