Press News

Budapest, May 14, 2007

Magyar Telekom has paid the HUF 1.5 billion earn-out payment relating to KFKI acquisition as defined in the Share Purchase Agreement.

According to the Share Purchase Agreement signed on June 16, 2006, the previous owners of KFKI were entitled to an earn-out payment of HUF 1.5 billion – as a moving price element of the announced maximum price of HUF 9.67 billion - depending on KFKI’s 2006 financial performance. As reported in the company’s full year 2006 consolidated financial statements, KFKI delivered HUF 19.8 billion revenues and HUF 2.0 billion EBITDA, reaching the predefined thresholds and enabling the earn-out payment.

KFKI has been a fully owned, consolidated subsidiary of the Magyar Telekom Group since the transaction was completed on September 15, 2006.