Press Releases

Budapest, September 15, 2006

Magyar Telekom has closed the transaction resulting in its acquisition of the IT services provider KFKI Group for a maximum price of HUF 9.67 billion. The price includes a moving price element which depends on the 2006 financial result of the KFKI Group. The transaction was closed on September 15, 2006 after the Economic Competition Authority gave its approval.

The close of the transaction will not bring changes in the management or business activities of the KFKI Group which comprises KFKI-LNX and two subsidiaries, ICON and IQSYS.

Magyar Telekom signed the contract on the purchase of 100% stake in KFKI-LNX Ltd. on June 16, 2006. Through the acquisition T-Systems, that serves the key business customers and biggest public administration partners of Magyar Telekom, will expand its existing competence in the field of IT services. By leveraging the new capabilities and synergies, T-Systems will be able to reach market segments it could not so far, to grow dynamically and successfully compete with the market leader IT companies in Hungary.

The KFKI Group which boasts reliable business and an experienced staff of professionals provides organic growth opportunity for the MT Group and consequently the acquisition fits into the group’s medium-term strategy.