Tele Danmark agrees to acquire 9.7% ownership.

BUDAPEST, Hungary--(BUSINESS WIRE)--June 25, 1997--Hungarian Telephone and Cable Corp. ("HTCC")(AMEX:HTC) has acquired the 20 percent interest, respectively in Raba-Com, and Kelet Nograd Com, two of its operating subsidiaries, previously owned by Tele Danmark ("TD"). The consideration is $5.3 million, to be satisfied by issue to TD of 420,908 common shares in HTTC. This transaction will increase TD's interest in HTCC from 0.6% to 9.7%.

The agreement, which is subject to final documentation, also gives TD the right, if TD acquires the 4.8% stake in each of the operating subsidiaries owned by the Danish Fund for Central and Eastern Europe, to sell such shares to HTCC on the same terms as referred to above. If all transactions are completed, HTCC's ownership of Raba-Com will increase 90%, and of Kelet Nograd Com, to 95%. TD's interest in HTCC would increase, in turn, to 11.6%.

TD has notified HTCC that it wishes to increase its percentage ownership in HTCC by supporting HTCC in its growth through acquisitions and otherwise.

TD occupies a prominent position in the Danish market for domestic and international telephone services. It is the market leader in mobile and data communications services; the largest vendor of voice and data communications equipment in the Danish market, and operates Denmark's largest cable television service. TD provides fixed line telephone service to 3.3 million subscribers and 800,000 mobile subscribers in Denmark (year end 1996). Furthermore TD is an active investor and partner in several telecommunications companies in Central and Eastern Europe, among them Belgacom in Belgium; the second Swiss operator, Newtelco, and the mobile telephone company Pannon GSM in Hungary.

The ownership of TD is diverse: the Danish State holds 51.73 percent of the shares, while the remaining share capital is held by 69,000 private and institutional investors from all over the world. The Company's shares are quoted on the Copenhagen and New York Stock Exchanges.

HTCC is being encouraged by its largest shareholders, Citizens Utilities and TeleDenmark to take advantage of the current monopoly concession rights provided in Hungary until 2002, and to expand its efforts to grow through mergers and acquisitions.

HTCC is a Local Concession Company (LEC) Operator in Hungary with five concessions operated by four operating subsidiaries, Hungarotel, Raba-Com, Papatel, and Kelet Nograd Com. Current projections by HTCC are to have 175,000 telephone lines by year end 1997.

James G. Morrison, President and CEO of HTCC, stated today that, "TD's enlarged interest in HTCC, and its interest in increasing its stake in the future is a positive step towards assisting HTCC's growth strategies. We welcome them as a major shareholder, and appreciate the confidence they demonstrate in the future of HTCC." -0-

Note to Editors: This release is available on the KCSA Public Relations website at www.kcsa.com .

CONTACT: Hungarian Telephone and Cable Corp., Budapest

James G. Morrison, 011/361-457-6300

Andrew E. Nicholson, 011/361-457-6300

or

Hungarian Telephone and Cable Corp., U.S.

Peter T. Noone, 203/348-9069

or

KCSA, New York

Joseph A. Mansi, 212/682-6300 ext. 205

Jeff Corbin, 212/682-6300 ext. 214