Press Releases

Budapest, April 25, 2003

Matáv today announced that SEEF Holdings Ltd. ("SEEF"), a subsidiary of Soros Investment Capital – that has a 6.1% ownership in Stonebridge Communications AD ("Stonebridge") – elected to exercise its put option with respect to 50% of its shareholding in Stonebridge.

The Subscription and Shareholders' Deed ("Deed") among Matáv, SEEF and CosmoTelco Added Value Services S.A. ("CosmoTelco"), dated as of 14 December 2000, provides for a put option which entitles SEEF to sell 50% of its shares in Stonebridge to Matáv on May 15 of each 2003, 2004 or 2005 or upon the occurrence of certain events at a price formula set out in the Deed. The formula takes into account the purchase price paid by the consortium for the shares of Makedonski Telekomunikacii AD ("MakTel"), EBITDA and the net debt of MakTel. According to the formula the SEEF put option price equals to EUR 20.9 million representing 3.05% ownership in Stonebridge.

Following the financial closing of the transaction, which is expected to be executed in May 2003, the shareholders of Stonebridge will be Matáv with an 89.55% stake, SEEF with a 3.05% and CosmoTelco with a 7.4% stake.

Stonebridge has a 51% ownership in MakTel, the sole fixed line and 100% owner of the leading mobile operator Mobimak in Macedonia.

Soros Investment Capital is a private equity fund financed by George Soros and the Overseas Private Investment Corporation (OPIC). OPIC is a US Government organization that supports overseas investments.