Press Releases

Budapest, December 15, 2004 14:00

At its meeting today the Matáv Group's Board of Directors made a decision to modify the Group's structure as of January 1, 2005 as part of the efficiency improvement program. As a result of the modification the Matáv Group's organizational structure will be simplified and its operation will become more efficient. The Chief Services and Logistics Officer position will be terminated. The new Wireline Services LoB will integrate the activities of the Residential Services LoB, Internet LoB and Network Systems LoB. The Management Committee will have 6 members instead of the current 8 members.

In response to the challenges of the liberalized telecommunications market Matáv elaborated its medium-term Value Creation Program. As a result of the headcount rationalization carried out as part of the efficiency improvement program announced on August 12 the number of organizational units will be reduced by about 40% and in connection with this step numerous executive positions will be terminated.

In the new - simpler and more efficient - organizational structure a Wireline Services LoB will be created that integrates the activities of the Residential Services LoB, Internet LoB and Network Systems LoB: residential telephone and internet service and network operations. The new LoB will be headed by Christopher Mattheisen, current Chief Officer of the Residential Services LoB. Axelero's management and legal status will remain unchanged. The Chief Services and Logistics Officer position will be terminated, the activities of this area will be taken over by other management areas, LoBs and outsourcing partners. As a result of these changes the Management Committee that is responsible for operative management of the Matáv Group will have 6 members instead of the current 8 members.

Elek Straub, Chairman-Chief Executive Officer, Dr. Klaus Hartmann, Chief Financial Officer, Dr. Tamás Pásztory, Chief Human Resources and Legal Officer, Zoltán Tankó, Chief Officer of the Business Services LoB will have unchanged responsibilities and remain members of the Management Committee together with Christopher Mattheisen, Chief Officer of the new LoB. András Sugár will remain Chief Officer of the Mobile LoB (T-Mobile Hungary) and will also be a member of the Matáv Group’s Management Committee from January 1, 2005.