Budapest, March 22, 2007 14:30

Magyar Telekom’s Board of Directors has reviewed the 2006 annual reports of Magyar Telekom Plc. prepared in accordance with Hungarian Accounting Rules (HAR), and that of Magyar Telekom Group prepared in accordance with the IFRS, and proposes them for approval to the Annual General Meeting. The Board of Directors also proposes a HUF 70 per share dividend payment for the financial year 2006 for approval to the Annual General Meeting.

The proposed dividend level of HUF 70 per share (par value HUF 100) for the 2006 financial year is in line with Magyar Telekom’s growth strategy and the aim of maintaining its net debt ratio (net debt to net debt plus total equity) in the targeted range of 30-40%. It also reflects the current level of profitability and financial position of the Magyar Telekom Group.

Magyar Telekom will hold its Annual General Meeting on April 26, 2007.