Press Releases

Budapest, March 31, 2009 09:15

Magyar Telekom announces the initiation of an investigation by the Hungarian National Bureau of Investigation.

On March 28, 2009, the Hungarian National Bureau of Investigation ("NBI") informed the Company that, based on a report received by it, it has begun a criminal investigation into alleged misappropriation of funds relating to payments made in connection with the Company's ongoing internal investigation into certain contracts entered into by members of the Magyar Telekom group and related matters. The NBI has requested from the Company materials and information relating to such payments. The Company is cooperating with the NBI investigation.

The Company cannot predict the outcome or timing of the NBI investigation. The Company cannot predict the potential impact, if any, the NBI investigation may have on the Company or its financial statements; nor can the Company predict the impact, if any, the NBI investigation may have on its ongoing internal investigation or the other governmental investigations. As a result of the NBI investigation, the NBI could recommend that the Public Prosecutor seek criminal sanctions against individuals in connection with the payments being examined by the NBI.

In addition, as previously stated by the Company, the Company cannot predict when the internal investigation or any of the other ongoing governmental investigations will be concluded, what the final outcome of those investigations may be, or the impact, if any, they may have on its financial statements or results of operations.Government authorities could seek criminal or civil sanctions, including monetary penalties, against it or its affiliates, as well as additional changes to its business practices and compliance programs.