Press Releases

Budapest, May 23, 2005

Magyar Telekom today announced the refinancing of its expiring loan through a financing agreement with Deutsche Telekom in the amount of HUF 40 billion.

Magyar Telekom has been granted two loans by Deutsche Telekom in the amount of HUF 40 billion effective from May 20, 2005. The loans will be used to refinance the outstanding HUF 40 billion loan agreement with Deutsche Telekom expiring on May 20, 2005.

The new loans have different maturities with the following breakdown: a HUF 20 billion loan maturing in January 2007, and a HUF 20 billion loan maturing in May 2007. The objective of granting mid term loans was to maintain the average maturity of the loan portfolio at an optimal level. Both loans carry fixed interest rates of 7,5525% p.a., and 7,614% p.a. respectively. Other conditions of the financing are similar to those in the previous agreements with Deutsche Telekom.

Magyar Telekom currently holds an A- credit rating from Standard & Poor's and Baa1 from Moody's.