Press Releases

Matáv acquiring 49% stakes of Westel 900 GSM Mobil Távközlési Rt. and Westel Rádiótelefon Kft.

Budapest, October 22, 1999

MATÁV has entered into an agreement with Deutsche Telekom providing an option to acquire the 49% stakes in Westel 900 GSM Mobil Távközlési Rt. and Westel Rádiótelefon Kft.

MediaOne is selling a part of its wireless assets to Deutsche Telekom. The contract, signed yesterday by the representatives of MediaOne and Deutsche Telekom, includes the acquisition of the 49% stakes of the two Westel-companies by Deutsche Telekom. Meanwhile MATÁV and Deutsche Telekom has come to an agreement on MATÁV having a call option against Deutsche Telekom over the Westel stakes. MATÁV can purchase the stakes as from July 1, 2000 over a period of 15 months at any time for a fixed price of USD 885 million.

Once Deutsche Telekom completes its purchase of the Westel stakes from MediaOne, MATÁV will take operational, management and voting control of the Westel stakes. Deutsche Telekom maintains certain minority protection rights. The contract of Deutsche Telekom and MediaOne will come into force, subject to regulatory approvals, in early 2000.

Hungarian authorities must also approve the agreement between Deutsche Telekom and MATÁV.

Elek Straub, Chairman and CEO of MATÁV told: "This is an excellent transaction for MATÁV, the Westel companies are our most important subsidiaries. Our clients will not see any changes on the basis of the acquisition, the companies will keep on operating independently, we are not planning any changes in the management and the changing ownership structure will not have an effect on the operation of the companies."