Budapest, July 7, 2005

Magyar Telekom (Reuters: NYSE: MTA.N, BÉT: MTEL.BU and Bloomberg: NYSE: MTA US, BÉT: MTELEKOM HB), the leading Hungarian telecommunications service provider, today announced that Elek Straub, the company’s Chairman and Chief Executive Officer, exercised his option to buy 552,831 Magyar Telekom shares on July 4, 2005. As a result, the number of treasury shares held by Magyar Telekom declined from 4,900,000 to 4,347,169.

Elek Straub subsequently sold Magyar Telekom shares on the Budapest Stock Exchange through Concorde Értékpapír Rt. as follows:
date                                   amount sold                 average price
4 July 2005           346,446                             HUF 893
5 July 2005               76,575                             HUF 888
6 July 2005           129,810                             HUF 885