Audit Committee

The Audit Committee assists in the appointment of independent auditors to be elected by the annual general meeting and reviews the scope of external audit services. It has to pre-approve all audit and non-audit services to be performed by the external auditor. The Audit Committee also reviews the annual financial statements of Magyar Telekom, taking into account the results of the audits and reviews performed by the independent auditors. The Audit Committee also reviews financial reports submitted to the stock exchanges, banks and regulatory bodies as well as reports prepared by the Company's internal auditors. The Audit Committee shall have as necessary but at least four meetings each year. Audit Committee members are appointed from the independent members of the Supervisory Board by the general meeting of the company.

Audit Committee Pre-Approval Policies and Procedures

The "Rules of Procedure" of Magyar Telekom Plc.'s Audit Committee were approved on February 15, 2008 and the "Pre-approval policy" of the Audit Committee was approved on July 14, 2010. The "Pre-approval policy" requires all services which are to be performed by our external auditor to be pre-approved by the Audit Committee. This may be in the form of general pre-approval or pre-approval on a case-by-case basis. In the case of certain services, specific pre-approval of the Audit Committee is required. The Audit Committee has been regularly informed of the external auditor's services and the relevant fees.