Investor Releases

July 07, 2003

Matáv (NYSE: MTA.N and BSE: MTAV.BU), the leading Hungarian telecommunications service provider announces the signature of a loan agreement with Deutsche Telekom on a short term Hungarian forint denominated loan.

Matáv has been granted a one year loan of HUF 126.6 billion effective from August 14, 2003 This loan will be used to refinance EUR 525 million of the expiring loan agreement that was used to the acquisition of the 49% Westel stakes at the end of 2001 At the end of March 2003, EUR 630 million of the EUR 920 million loan was still outstanding.

The new facility has favorable market conditions determined on an arms-length basis. The conditions are similar to those in the previous agreement. Matáv currently holds a BBB+ credit rating from Standard & Poor's and Baa1 from Moody's.

The decision on any further refinancing if required will be finalized at a later date.

This press release contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore should not have undue reliance placed upon on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors are described in, among other things, our Annual Report on Form 20-F for the year ended December 31, 2002 filed with the U.S. Securities and Exchange Commission.