Budapest, May 29, 2007 09:00

In line with the Group strategy of increasing the focus on service quality and operational efficiency, Magyar Telekom is simplifying the organizational structure of T-Systems. The move will reduce the number of subsidiaries, while keeping the flexibility and customer focus of the organization. The legal integration is expected to be completed by January 1, 2008.

Following the expansion of the T-Systems portfolio, particularly through the recent acquisitions of KFKI Group and T-Systems Hungary, Magyar Telekom has reviewed the organizational structure of the segment. In order to provide higher level services to the customers and thereby improve sales efficiency, the Company has decided to simplify the segment's structure.

The restructuring now starting follows the new governance structure introduced at the beginning of the year and proven to be successful. The activities of the current six subsidiaries are being integrated (in line with their profiles and competencies) into two divisions, each forming an individual legal entity. The IT Infrastructure division comprises BCN, ICON and KFKI-LNX. The activities of the division cover network and system integration, network operation, network security and IT consultancy services. The IT Applications division, which includes Integris, IQSYS and T-Systems Hungary, is responsible for on-site support and operations as well as for application integration, development and operation. In addition, a third, though only operational division (Infocom) is forming the last pillar of the new organizational structure, which is responsible for managing the traditional in-house expertise - voice services, data communication WAN solutions and outsourcing activities.

The simplification of the organizational structure enables the T-Systems segment to focus more efficiently on strengthening market leadership in the ICT service market as well as to make its position as an IT/TC provider unambiguous on the corporate market. Capitalizing on the advantages of the new structure, the segment will focus on offering a broad range of complex, integrated services to its customers, and further enhancing operational efficiency through the elimination of overlapping activities.