Budapest, December 14, 2005

The new company has been established with registered share capital of HUF 200m and is jointly owned by Magyar Telekom and T-Mobile Hungary. Magyar Telekom’s share of ownership is 25% plus a single share, while the remainder is held by T-Mobile Hungary. Mr. Béla Kozma, previously CEO of Emitel Rt, has been appointed as the CEO of the new company. The registration process has been initiated at the Court of Registry and is expected to be completed by end of January 2006.

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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, 2004 filed with the U.S. Securities and Exchange Commission.