Press Releases

Budapest, December 22, 2004 17:00

Following an in-depth due diligence process of the Montenegrin telecom company Telekom Crne Gore (Telekom CG), Matáv has submitted today a binding offer in a public tender process for the sale of shares of the company to the Agency of Montenegro for Economic Restructuring and Foreign Investments.

Matáv's intention to acquire the shares of Telekom CG is in line with the strategic priority of seeking growth opportunities through value creating acquisitions. Telekom CG meets the selection criteria defined as part of the company's acquisition strategy.

The Telekom CG Group consists of Telekom CG and its three subsidiaries, Monet GSM, Internet CG and Montenegro Card. According to information published by the company, Telekom CG, Montenegro's incumbent fixed-line operator, provides fixed-line services to around 191,000 customers. The company generated standalone revenues of 72.1 million euros with an EBITDA of 22.8 million euros in 2003. The 100% owned Monet GSM is the country's second largest mobile operator with around 190,000 users and a 43% market share at the end of 2003. The 85% owned Internet CG is the country's dominant ISP with over 70,000 dial-up users and a 90% share of the market. Telekom CG also owns 51% of Montenegro Card, a provider of public payphone services with a 60% market share.

Further information regarding Telekom CG and its subsidiaries and the telecommunications market of Montenegro can be found on the websites of the Telekom CG Group and the national regulatory authority:
http://www.telekomcg.com/english.asp
http://www.monetcg.com/english/
http://www.cg.yu/eng/
http://www.agentel.cg.yu/english/index.htm

In line with the tender rules and Matáv's non-disclosure agreement, detailed information on the company as well as details of the offer are confidential and will only be disclosed upon the Montenegrin government's final decision.