August 15, 2002

Matáv (NYSE: MTA.N and BSE: MTAV.BU), the leading Hungarian telecommunications service provider, hereby announces that the share capital increase of the company - related to the new management share option program launched on July 1, 2002 - has been approved by the Hungarian Financial Supervisory Authority (resolution No. 18276/4/2002 dated July 17, 2002) and registered by the Court of Registry (decree No. 01-10-041928/165 dated August 7, 2002). As a result, the share capital of the company has increased from HUF 103,791,170,000 to HUF 104,281,170,000 as of August 7, 2002 according to Hungarian Accounting Rules.