Press Releases

Budapest, June 6, 2002

In order to strengthen Matáv’s commitment to the development of the Hungarian Internet market, and also to support Axelero’s success and dynamic growth track record, Matáv has decided to increase Axelero’s shareholders’ equity by HUF 4 bn. Shareholders’ equity of Axelero was HUF 2.5 bn at the end of 2001.

In addition Matáv has appointed Axelero CEO Mr László Drajkó, and deputy CEO Mr György Simó to the Axelero Board of Directors. Mr Bálint Nagy, Matáv Group Communication director was also elected to the Board of Directors.

Axelero has a market leading position in the three main segments of Internet, the business, residential and the content provider markets. At the end of March, Axelero had more than 142,000 dial-up subscribers (up by 36% over Q1 2001). 6904 customers used its broadband service, showing a 61% growth over the fourth quarter of 2001. Its leading portal, [origo] had more than half a million visitors per day in Q1 2002. The registered number of freemail users exceeded 1 million on 17 May, this year. Axelero had an average 43% market share in the business segment (at small enterprises: 47%, mid-size companies: 47%, large firms: 37%) at the end of the first quarter, this year.

The share of Internet related traffic minutes (06 51 pre-fix number) within total local traffic grew from 28% to 40% in Q1 2002 compared to same period, last year.