Press Releases

Budapest, April 9, 2002

Matáv (NYSE: MTA.N and BSE: MTAV.BU), the leading Hungarian telecommunications service provider, today announced that it has entered into agreement with CosmoTelco regarding their option contracts in Stonebridge. Stonebridge owns 51% of the Macedonian telecommunications company, MakTel.

According to the original contract, CosmoTelco had the right to acquire additional shares in Stonebridge from Matáv such that CosmoTelco’s holding can be increased from the current 7.4% to 29% of the issued share capital of Stonebridge.

Matáv and CosmoTelco have agreed that CosmoTelco waives it’s call option to purchase up to 29% of the share capital of Stonebridge (equal to an additional 21.6% over it’s current shareholding). At the same time Matáv grants an extension to the call option granting to CosmoTelco the option to purchase 10% of the share capital of Stonebridge. This extension will expire in February 2003. Matáv has paid an amount of EUR 7 million to CosmoTelco for undertaking not to increase its stake in Stonebridge by more than 10% over it’s current shareholding.

Any final outcome described above will not materially effect Matáv’s controlling status in Stonebridge.