Budapest, July 10, 2009 15:30

Magyar Telekom has invited a competition for public benefit and priority public benefit NGOs. The service provider will conclude a permanent donation agreement under a three-year strategic partnership with the winners. The three-year strategic partnership will secure a sound financial basis for implementation of the programs of the winning NGOs and can enhance Magyar Telekom's leading position in the fields of corporate citizenship and sustainability, as well as in supports to education programs, innovation and health.

Magyar Telekom as Hungary's leading infocommunication service provider is committed to the principle of sustainable development, in particular corporate citizenship. The company's goal with the invitation of this competition is to create a partnership relation with NGOs that secures a sound financial basis for a three-year period for implementation of the programs of the winning NGOs, promoting achievement of goals with high benefit for the Hungarian society. In connection with this program our goal is to enhance Magyar Telekom's leading position in the fields of corporate citizenship and sustainability and to raise awareness of our role as donor and sponsor.

The competition will cover three fields:
1. Sustainability, in particular closing the digital gap and shaping the views of the future generation along the principles of sustainable development.
2. Scientific education, initiatives that transmit everyday science, applied technologies and the latest innovative scientific discoveries to the public in a readily understandable way.
3. Health, in particular health protection and prevention programs.

We invite entries in each focus area that aim at implementing programs concerning social and environmental problems with the objective of bringing results to the widest possible scope of people and bringing together various social groups by creating involvement. Community building through joint success and experience plays an important role. The organizations submitting entries should keep in mind that Magyar Telekom attaches special importance to innovation, i.e. it applies the latest technologies and provides products and services using them to create the opportunity for its customers to communicate with each other and share experiences with loved ones, friends and acquaintances. The corporate slogan "Life is for sharing" should be reflected in the entries.

General requirements:

• Competitors should achieve the set goal with tools that reflect innovation considered by Magyar Telekom to be a key brand value. As far as possible, up-to-date infocommunication technologies should be used in the proposed programs.
• A mandatory element of entries is a detailed communication plan. (When implementing the program the organization may engage a communication agency.)

Entries may be submitted by public benefit and priority public benefit social organizations - foundations, associations - registered and operating in Hungary. Organizations with state ownership, minority, religious or political background may not participate.

Up to three winners will be selected. A permanent donation agreement will be concluded with the winning organizations for the period January 1, 2010 to December 31, 2012. Annual donations will amount to HUF 10 million per organization. The competitor must provide funding amounting to 30 percent of the financing needed for implementation of the program for each year. This amount can be provided also from aid obtained from other grants (from the state, local government, EU), except assistance received from other companies. Other donations can also be used for implementation of the program, except assistance received from other companies. No more than 25 percent of the donation obtained from Magyar Telekom may be used for operating expenses each year. The donation may not be used for post-financing of programs already implemented. In the case of unsuccessful competition the donor reserves the right not to grant the donation, to invite the competition again or use the funds for other competitions.

The competition's winner organizations will have to prepare quarterly progress reports on program implementation (actions, participation, costs, communication activities) and submit annual itemized financial accounts transparently showing expenditure of the amount donated by Magyar Telekom.

Entries may not exceed 8 pages, apart from annexes. Entries must be submitted with one printed copy and one copy on CD or DVD. Entries received will undergo prequalification. The best entries will be presented by the organizations to the Board of Trustees of the Magyar Telekom Contributes program.
Deadline for receipt of entries: August 14, 2009.
Deadline for judgement of entries: September 17, 2009
The competitors will be notified within 15 days of the decision made by the Board of Trustees.

Entries must be prepared exclusively with the entry form available on Magyar Telekom's website and the annexes shown therein. The entry form and detailed competition requirements can be downloaded from the following website: https://www.telekom.hu/tarsadalom_es_kornyezet