BUDAORS, HUNGARY -- (MARKET WIRE) -- 03/08/07 -- Magyar Telecom B.V.,
parent company of Invitel ZRt. ("Invitel"), today reported its
financial results for the year ended 31 December 2006.

Financial and Operational Highlights

-- Total revenue in HUF terms increased 9% to HUF 49.1 billion for the
year ended 31 December 2006 compared to the same period of last year. In
Euro, total revenue for the period was EUR 185.6 million compared to EUR
181.3 million in 2005.
-- Gross margin was HUF 34.0 billion for the year ended 31 December 2006,
up 3% compared to the previous year. Gross margin percentage remained
strong at 69%. In Euro, gross margin for the year decreased by 3% to EUR
128.5 million.
-- Recurring EBITDA was HUF 20.3 billion for the year ended 31 December
2006 compared to HUF 20.5 billion in the same period of 2005. In Euro,
recurring EBITDA for the year ended 31 December 2006 decreased to EUR 76.7
million from EUR 82.4 million in 2005.
-- The average exchange rate for the year ended 31 December 2006 was
264.66 HUF/EUR while the average exchange rate for the year ended 31
December 2005 was 248.32 HUF/EUR.
-- The total number of broadband Internet customers including Euroweb was
over 100 000 as of 31 December 2006.
-- Mass Market out of concession voice customer contracts increased from
82 379 as of 31 December 2005 to 161 423 as of 31 December 2006.
-- Gross margin of total business segment was HUF 9.0 billion for the
period ended 31 December 2006, up 9% compared to the previous year.
-- Business voice customer growth is accelerating. The number of voice
contracts grew to a total of 2 898, representing a year on year increase of
102%.
-- Free cash flow before debt service, excluding the purchase of Euroweb,
was EUR 49.2 million for the period ended 31 December 2006.
-- Cash and cash equivalents after the acquisition of Euroweb totaled EUR
13.6 million at 31 December 2006.
-- The capex to revenue ratio for the year ended 31 December 2006 was
13%, driven by growth in new customer acquisitions.

Mass Market Voice revenues for the year ended 31 December 2006
amounted to HUF 20.5 billion (EUR 77.4 million) compared to HUF 22.1
billion (EUR 89.1 million) for the year ended 31 December 2005. This
decrease is attributable to competition in our historical concession
areas and mobile substitution, partially offset by the increase in
out of concession revenue arising from continuously increasing the
number of customers.

Mass Market Internet revenues were HUF 6.4 billion (EUR 24.4 million)
for the year ended 31 December 2006 compared to HUF 5.0 billion (EUR
20.0 million) for the year ended 31 December 2005, an increase of 30%
year on year. This performance was due to the increase in the number
of DSL contracts, in line with the continued expansion of the
Hungarian broadband Internet market.

Business revenues for the year ended 31 December 2006 increased by
30% to HUF 14.5 billion (EUR 54.6 million) compared to HUF 11.1
billion (EUR 44.8 million) for the year ended 31 December 2005. This
increase is due to the decrease in churn to mobile service providers,
increase in our out of concession business voice contracts as well as
the inclusion of the results of Euroweb.

Wholesale revenues for the year ended 31 December 2006 increased to
HUF 7.7 billion (EUR 29.2 million) from HUF 6.8 billion (EUR 27.4
million) for the year ended 31 December 2005.

On 9 January 2007, HTCC announced that it had signed an agreement to
acquire 100% of the shares in Matel Holdings NV (and thereby
indirectly 99.98% of the shares of Invitel) for a total consideration
of EUR 470 million or 6.1x Invitel EBITDA for LTM 30 September 2006.
Martin Lea will assume the role of Chief Executive Officer of the
enlarged company and Robert Bowker that of Chief Financial Officer.
The transaction is subject to the approval of the Competition Office
which is expected to be received in the first half of 2007.

Martin Lea, CEO of Invitel, commented, "Overall, we are pleased with
the results for 2006 which are very positive, in all respects. We feel
that the increase both in revenues and gross margin compared to last
year reflects well on the performance of the whole Invitel team,
particularly in light of quite challenging trading conditions. We
continue to see signs of stability in our traditional in concession
voice business, whilst at the same time have demonstrated our ability
to strongly grow our Internet business, as well as our out of
concession corporate and residential business and the higher margin
elements of our wholesale business. We have also benefited from the
inclusion of Euroweb, which has now been fully integrated with the
Invitel business in Hungary.

"Also, we are very pleased to have signed the agreement with HTCC,"
added Mr. Lea. "We believe that the combination of the two companies
will create a stronger number two player in the Hungarian fixed line
telecommunications market and that the combined businesses will create
new and bigger opportunities, through broader geographic coverage as
well as a more diversified service portfolio."

Robert Bowker, CFO of Invitel, stated, "Our total gross margin for
the year ended 31 December 2006 was HUF 34.0 billion showing a 3%
increase compared to the prior year. We were able to keep our
operating costs under control, which contributed to us achieving a
recurring EBITDA margin of 41%. This contributed to us maintaining
our net third party debt to recurring EBITDA ratio at the level of
3.1x. Despite strong growth in new customer acquisition our capex to
revenue ratio remained at around 13%."

Mr. Bowker also noted that the Company's balance sheet is strong with
EUR 13.6 million in cash and cash equivalents at 31 December 2006.

"The results for 2006 were in line with our expectations," concluded
Ian McKenzie, Executive Chairman of the Board. "We are pleased to see
the trends both in our in concession and out of concession areas. We
also believe that the agreement concluded with HTCC at the beginning
of 2007 was a significant step forward for the company that will add
further competitive strengths to the new combined entity and will
enable it to increase market share both in and out of concession
areas in the corporate, wholesale and Internet businesses."

A summary of Magyar Telecom B.V.'s financial results for the year
ended 31 December 2006, which includes further information regarding
our financial performance and also includes qualification of some of
the terms used in this press release, is available on the Invitel
website (www.invitel.hu/investors) and should be read in conjunction
with this press release.

Conference Call Information

On 8 March 2007 (at 14:00 UK time, 15:00 CET, 9:00 AM EST), Invitel
will host a conference call to discuss financial results for the year
2006. You can participate in the conference call by dialling
+44-145-256-0299 (UK), +1-706-679-0560 (International) or
+1-877-270-4109 (US) and referencing "Matel" or "Invitel". You can
access a web cast of the call on the Invitel web site at
www.invitel.hu/investors. In addition, a replay will be available two
hours after the call has ended and through 15 March 2007. To access
the replay of the call, in the UK please dial +44-145-255-0000 and
enter conference ID number 9443593; in the US please dial
+1-800-642-1687 or internationally dial +1-706-645-9291 and enter
conference ID number 8897906. An archived replay of the conference
web cast will also be available on the Invitel web site,
www.invitel.hu/investors.