Press Releases

Budapest, July 3, 2002

Matáv launched its new management share option program on July 1, 2002 and increased its share capital by HUF 490,000,000 within private placement.

In accordance with the resolution of the Annual General Meeting with respect to the financial year 2001, held on April 26, 2002, Matáv launched a new management share incentive scheme. The detailed description of the program can be found in the annex to resolution No. 27/2002 (April 26).

The strike prices of three tranches under the option are HUF 933, 950 and 950 calculated by the closing BSE price on July 1 2002 plus 12%, 14% and 14% premium, respectively.

At the same time, Matáv issued the 4.9 million shares (HUF 100 face value, “A” type ordinary shares) necessary for the first series of the share option program, with the assistance of CIB Bank Rt., in the form of a private placement at a price of HUF 916 per share. The price is calculated by the closing BSE price on July 1 2002 + 10% premium. Simultaneously, Matáv purchased the same amount of shares back at the same price. Matáv will hold these shares as Treasury shares until the options are exercised.

The financial advisor of the program was Concorde Aquila Corporate Finance Ltd.