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)

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.