Investor Releases

April 18, 2003

Matáv (NYSE: MTA.N and BSE: MTAV.BU), the leading Hungarian telecommunications service provider, today announced that its subsidiary, Makedonski Telekomunikacii (MakTel) held its Annual General Meeting and among other items it has made a decision on dividend payment in a total amount of MKD 2.4 billion (equalling around HUF 9.8 billion using HUF/MKD rate of 4.08 as of 17 April, 2003).

At MakTel's Annual General Meeting, held on April 18, 2003, it was decided that the company will pay a dividend of MKD 1.2 billion (HUF 4.9 billion) after the profit of year 2002 According to Macedonian Accounting Standards (MAS) MakTel on a standalone basis recorded a net income of MKD 1.2 billion for the year 2002 (MakTel Group according to IFRS recorded a net income of MKD 6.2 billion for the year 2002)

Due to the strong profits and solid cash flow generation in previous years MKD 1.2 billion (HUF 4.9 billion) from the retained earnings of previous years will also be paid to the shareholders.

The receivers of the dividend and their shareholdings are Stonebridge Communications AD (51%), Government of Republic of Macedonia (47.12%), IFC (1.88%).

Stonebridge is entitled to an amount of MKD 1.2 billion (HUF 4.9 billion) as dividend payment. According to the current ownership structure, Matáv has 86.5% stake in Stonebridge.

MakTel, as a legal entity, is the Macedonian parent company of MakTel Group, which is the sole fixed line and the leading mobile operator in Macedonia.