ADR PROGRAM

In the United States, Magyar Telekom stock has been traded under a Sponsored Level III ADR Program since November 1997. In a Level III ADR Program, the American Depositary Shares (ADSs) are listed and traded on the New York Stock Exchange (NYSE), thereby offering higher visibility in the U.S. market, more active trading and greater liquidity. Level III ADR programs must comply with the full registration and reporting requirements of the U.S. Securities and Exchange Commission (SEC).

ADSs are a U.S. dollar-denominated form of equity ownership in a non-U.S company. They represent that company’s share and carry the rights attaching to them. ADR is the acronym for American Depositary Receipts. An ADR is the physical certificate evidencing ownership of one or more ADSs that trade on US financial markets. The term ADR is used interchangeably with the term ADS. Apart from NYSE Magyar Telekom ADRs are also traded on SEAQ International. 1 ADR represent 5 Hungarian shares.

JP Morgan Chase Bank is the depositary for Magyar Telekom ADRs. Magyar Telekom ADRs are backed by common shares held under custody in Hungary by Deutsche Bank Hungary in JP Morgan’s name on behalf of Magyar Telekom ADR holders.