Press Releases

Budapest, May 19, 2000

The representatives of the consortium set up under the leadership of MATÁV today announced their intention to the establishment of the first Hungarian business-to-business electronic marketplace. According to the current plans, the biggest Hungarian bank, OTP Bank Rt., and the local subsidiaries of two leading international groups, Andersen Consulting and Compaq Computer Corp., will also participate in the future consortium, that would assume the provision of financial, business and IT services necessary for the operation of the marketplace. The entire Hungarian economy may benefit, even this year, from the operation of the electronic marketplace, which the founding members intend to set up through an investment of several billion forints.

Using Internet-based technologies, the electronic marketplaces provide companies with quick and cost-effective access to any kind of goods they want to purchase at any time and at the most favourable prices. It can result in over 10 per cent saving in procurement prices for the companies. In the future, leading world companies will do business with suppliers and customers in electronic marketplaces. By joining the most advanced international trends, Hungarian companies will be able to continue to decrease their costs and increase their competitiveness.

According to the expectations of the founders, the electronic marketplace is expected to become a milestone in domestic electronic commerce (e-business) and can multiply the turnover of e-business within a very short timeframe. According to the plans, several hundred companies could be connected to the commerce system within a couple of months after the launch. This marketplace opens up Hungary's economy in the direction of international electronic marketplaces, making the products of Hungarian companies accessible through these channels. The new electronic marketplace is open to all Hungarian companies and businesses, without limitation on industries or products.

Initially, the introduction of the following services is planned in the electronic marketplace: connection of suppliers, catalog management (development and maintenance of product catalogs), transaction management, transaction tracking, payments, value-added services (direct delivery, leasing, etc.) tendering, global connections, procurement applications and the provision of portal site infrastructure services. The scope of the services provided will be extended from time to time.

The founders of the Hungarian nation-wide electronic marketplace have surpassed with their initiative not only all the Central and Eastern European countries but also Austria among others. The technology of Commerce One, a U.S.-based company, will be applied in the operation of the marketplace, which has a proven track record in several countries, including the United States. Commerce One is a leading global software company in the field of solutions for business-to-business electronic marketplaces.

The founders plan to involve a leading logistics service provider in the consortium. The name and web address of the electronic marketplace will be announced in the near future, while simultaneously the offers of the marketplace for the companies will be made available on the Internet.

About MATÁV:
MATÁV is the principal provider of telecom services in Hungary and holds the national concession for national and international long distance telephony. MATÁV provides a broad range of services including telephony, data transmission, value-added services, and through its subsidiaries is Hungary's largest mobile telecom provider. Key shareholders as of March 31, 2000 include the Ministry for Transport, Communications and Water Management (holder of the Golden Share), MagyarCom, a consortium of SBC/Ameritech International, Inc. and Deutsche Telekom AG (59.53%), while 40.47% is publicly traded. For detailed information on MATÁV', visit our website at http://www.matav.hu.

About Andersen Consulting:
Andersen Consulting is an $8.3 billion global management and technology consulting organization whose mission is to help its clients create their future. The organization works with clients from a wide range of industries to link their people, processes and technologies to their strategies. Andersen Consulting has approximately 65,000 people in 48 countries. The Budapest office was established in 1991, now numbering near 130 professionals. Its home page is http://www.ac.com.

About Compaq:
Compaq Computer Corporation, a Fortune Global 100 company, is the largest supplier of computing systems in the world. Compaq designs, develops, manufactures and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, and communications products, commercial desktop and portable products, and consumer PCs. Compaq products and services are sold in more than 200 countries directly to businesses, through a network of authorized Compaq marketing partners, and directly to businesses and consumers through Compaq's e-commerce Web site at http://www.compaq.com. Compaq markets its products and services primarily to customers from the business, home, government, and education sectors. Customer support and information about Compaq and its products and services are available at http://www.compaq.com.

About OTP Bank:
OTP Bank has kept its leading position on the Hungarian financial market since the introduction of the two-tier banking system in 1987. With a balance sheet total of over 1,860 billion HUF, it holds one-fourth of the total assets of the Hungarian banking sector, consisting of over 40 banks. OTP Bank remains in the front line of the development of electronic banking services while joining the global trends of shifting the emphasis, within the organisation, towards a more sales oriented organisation and branch network, telephone and Internet banking services. Developments, aimed at maintaining its market-leading role, are being introduced while continually improving the profitability and efficiency indicators. The products and services of the bank are presented on Internet from 1998 (www.otpbank.hu).