Press Releases

Budapest, October 9, 2006 15:30

The shareholders were informed about Magyar Telekom’s business activities and current situation, and about the investigation being conducted into certain contracts. The General Meeting approved the amended and consolidated Articles of Association of Magyar Telekom Plc., and the amended and consolidated rules of procedure of the Supervisory Board. After that the General Meeting suspended discussion of other agenda items.

Chief Financial Officer Thilo Kusch informed the shareholders’ meeting about Magyar Telekom’s business activities and current situation. He also mentioned that by end-September HUF 3.1bn expenses were incurred at Magyar Telekom relating to the investigation. This was followed by a report on the current status of the investigation into certain contracts read by Bálint Nagy, Communications Director of Magyar Telekom. As a result of the investigation, two additional contracts have been called into question. Thus the total amount of the four contracts under investigation is around HUF 2bn. This investigation is still ongoing. The Company expects the Board of Directors to consider what further action should be taken including with respect to the conduct of members of management.

The General Meeting approved the amended and consolidated Articles of Association of Magyar Telekom Plc., and the amended and consolidated rules of procedure of the Supervisory Board. The reason for the amendments was to comply with the provisions of the new company law that entered into force on July 1, 2006, and in the case of the Articles of Association, the changes in the sites and activities of the Company.

It became clear during consultation with shareholders that preparation of the other agenda items required more time, so the General Meeting suspended their discussion. The EGM will resume on November 6, 2006.