Press Releases

Office of Economic Competition decides on the MediaOne - Deutsche Telekom - Matáv transaction

Budapest, February 28, 2000

According to the decision made today by the Competition Board of the Office of Economic Competition, providing it complies with certain conditions, Deutsche Telekom may acquire a 49% ownership share in the Westel companies and MATÁV may obtain the controlling right of the two mobile companies.

MATÁV was pleased by the decision of the Office of Economic Competition. The Company accepts and fulfills the requirements set by the Office of Economic Competition for MATÁV. The Company is glad to see the start in Hungary of the process marking global telecommunications markets: the period of fusions and mergers has begun.

Deutsche Telekom has bought a 49% share package of the two Westel companies from MediaOne. In October 1999, MATÁV concluded an agreement with Deutsche Telekom ensuring a purchase option for a 49% ownership share of both Westel 900 GSM Mobil Távközlési Rt. and Westel Rádiótelefon Kft. MATÁV is entitled to buy 49% of the two mobile companies at a fixed price of USD 885 million at any time within the 15-month period subsequent to July 1, 2000. Under the representation agreement concluded with Deutsche Telekom, MATÁV will obtain exclusive controlling rights of the Westel companies already at the time of Deutsche Telekom's acquisition of their ownership shares.