Budapest, February 25, 2003

Matáv firmly rejects the allegations published in the Macedonian press and sums up its position as follows:

At the time of MakTel's privatization it was the expectation of the Macedonian State that was selling the majority stake of the company that the investment promote the spread of the services and the improvement of their quality, maximize results and help MakTel's preparation for operation in an open market environment. The Seller and the Buyer reached an agreement that in order to transfer the knowledge required for the efficient management of the company, Seller would set up Tele Macedonia, a company providing consulting services for MakTel, and would provide for the operation of the advisors and the establishment of the "best industry practice" at the company through this consulting firm.

The consulting company was set up by the strategic investors for a specific task and its foundation was fully in line with international practice. Its board of directors consists of 7 members of whom MakTel delegates one.

The relationship of Tele Macedonia and Maktel is based on market agreements developed through the mutual understanding of the parties. The consulting fees are below the average in international comparison and amount to only a tiny fraction of the investments made to date. However, the extra value generated by the company is a significant factor in the financial results of MakTel and the development of the network and the services.