Deutsche Telekom Acquires Remaining 50% of MagyarCom.

Business and High Tech Editors

BUDAPEST, Hungary--(BUSINESS WIRE)--July 3, 2000

MATAV (NYSE: MTA.N and BSE: MTAV.BU), the leading Hungarian telecommunications service provider, hereby informs its investors that as provided in the shareholders' agreement between SBC Communications Inc. and Deutsche Telekom AG, SBC's 50% ownership in MagyarCom is being transferred to Deutsche Telekom in a transaction with a valuation based on MATAV Rt's share price as of market close on June 30, 2000. The ownership change brings Deutsche Telekom's ownership in MATAV to 59.53%, the remaining 40.47% stake is publicly traded while 1 Golden Share is with the State.

Elek Straub, Chairman and CEO of MATAV commented on the transaction: "Under the guidance of Deutsche Telekom and SBC-Ameritech, since its privatization in the early nineties MATAV has been transforming itself from an inefficient monopoly into a world-class telecommunications group. We will continue to build on the achieved results and the acquisition will not lead to any change in MATAV's strategy to maintain market and technological leadership. Our common goal remains to deliver profitable growth to our shareholders. We welcome the acquisition which clearly indicates Deutsche Telekom's strong commitment to Hungary and MATAV. We look forward to continuing the close working relationships that MATAV and Deutsche Telekom have built."

MATAV is the principal provider of telecom services in Hungary and holds the national concession for national and international long distance telephony. MATAV provides a broad range of services including telephony, data transmission, value-added services and, through its subsidiaries, is Hungary's largest mobile telecom provider.