Press News

Budapest, March 9, 2006

SAP Hungary Kft. announced today that they have signed a contract with the Magyar Telekom Group for the implementation of the ERP system supporting the new integrated and harmonized processes of the MT Group. Under the contract they will replace the existing SAP integrated business management system of Magyar Telekom Nyrt. with a SAP ECC version 5.0 system. This system will also be rolled out to the nine subsidiaries of Magyar Telekom Nyrt. and to T-Mobile Hungary that merged into Magyar Telekom with effect March 1. The size and dimensions of the contract make ERP the biggest system integration investment of the year in Hungary .

On November 7, 2005 the extraordinary general meeting of Magyar Telekom Rt. took the decision that T-Mobile Hungary Rt. and Magyar Telekom Rt. will merge in order to better leverage synergies and make the operation of the group more efficient. As a result of the merger it has become necessary to integrate the business processes, the IT systems and regulations within the Magyar Telekom Group. Evaluation of the proposals of the companies invited to bid has brought the result that SAP Hungary Kft. possesses the expected level of experience and the qualified staff to implement the transformation of the SAP system and the related processes in such a way that the system will be able to support the processes of the merged Magyar Telekom Nyrt. from January 1, 2007. So Magyar Telekom Nyrt. has given the contract for implementation of the job described in the tender to SAP Hungary Kft.

„We have arrived at an important milestone in the merger process. I look forward to working closer with SAP Hungary on the implementation of the IT business solution platform,” said Dr. Klaus Hartmann, Chief Financial Officer of Magyar Telekom and member of the Board of Directors of the Group.

With the integration of the back-office processes and the connected IT systems Magyar Telekom wants to further develop the shared service concept in order to increase efficiency in the accounting and financial areas, and to replace the former business management system of T-Mobile. Following comprehensive assessment of the existing processes and business process reengineering, the project will address the accounts receivable, taxation and treasury processes, payment authorizations, petty cash management, investment management, controlling, procurement and stock management processes and functions, sales and non-core activity billing support, human capital management, vendor relations management, electronic procurement processes and the development of interfaces with the existing island systems. In implementing the project SAP Hungary will have to pay special attention to ensuring compliance of the processes with the Sarbanes-Oxley Act.

“It is a great pleasure for us that Hungary’s most prominent telecommunications group has chosen SAP Hungary to develop its group-level SAP system, further deepening with this gesture the relations of our companies that already look back on a past of a decade. We are proud that Magyar Telekom (formerly Matáv) has been using an SAP system since 1996, so this latest decision is not only a positive feedback for us about the work we have done so far, but also evidence of Magyar Telekom’s confidence in SAP. The conclusion of this contract is a clear indication that the experience of SAP Hungary in process engineering and complex IT project management, and the extensive knowledge and competence of its advisors amount to a formidable competitive edge for us in the market,” said Tamás Vahl, managing director of SAP Hungary Kft.