Hungarian Telephone and Cable Negotiating to Purchase Salgotarjan Cable TV Ltd.

STAMFORD, Conn.--(BUSINESS WIRE)--July 7, 1997--Hungarian Telephone and Cable Corp. (AMEX: HTC) announced today through its president, James Morrison, that it has signed a letter of intent to purchase Salgotarjan Cable TV Ltd. (SCTV), a Hungarian regional television broadcasting company transmitting Hungarian and satellite television programs with a cable network system. The acquisition, which will cost approximately $750,000, is subject to final board approval which is expected in approximately 45 days.

SCTV is targeting the regional population surrounding Salgotarjan, the capital city of the County of Nograd. SCTV currently has approximately 12,500 customers in the region and is targeting an additional 60,000 households. Hungarian Telephone operates Kelet Nograd Com (KNC), the local monopoly telephone operation in Salgotarjan.

Morrison, president and chief executive officer of the company, stated, "The acquisition of SCTV in conjunction with KNC's already strong presence will fortify the company's position within this geographic region in the delivery of information services."

Hungarian Telephone and Cable Corp. is a rapidly growing provider of basic telephone services in five defined operating regions of the Republic of Hungary. The company operates through four Hungarian subsidiaries which have been granted 25-year telecommunications concessions by the Hungarian government. -0- This release is available on the KCSA Public Relations website at www.kcsa.com.

CONTACT: Hungarian Telephone and Cable Corp.

U.S.: Peter T. Noone

203/348-9069

Hungary: James G. Morrison/Andrew E. Nicholson

011/361-457-6300

or

KCSA Public & Investor Relations, New York

Joseph A. Mansi/Jeff Corbin

212/682-6300 ext. 205/214