INVITEL HOLDINGS A/S

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1 INVITEL HOLDINGS A/S Puskas Tivadar u H-2040 Budaors, Hungary Phone (361) Fax (361) FOR: INVITEL HOLDINGS A/S COMPANY CONTACT: Robert Bowker Chief Financial Officer Hungary: (011) FOR IMMEDIATE RELEASE INVITEL HOLDINGS A/S ANNOUNCES THE 2009 FINANCIAL RESULTS OF MAGYAR TELECOM B.V. NEW YORK (BUSINESS WIRE) May 3, 2010 Invitel Holdings A/S (Pink Sheets: INVHY) announced today the financial results of Magyar Telecom B.V. for the year ended December 31, We are in the process of selling our International Wholesale Business, comprising the entire issued share capital of Invitel International AG (including its subsidiaries), AT-INVITEL GmbH, Invitel International Hungary Kft and S.C. EuroWeb Romania S.A. Accordingly, the International Business was classified as discontinued operations and our remaining business (the Domestic Business ) is shown as continued operations in our consolidated income statement for the years ended December 31, 2009 and 2008.

2 2009 RESULTS The results for the year ended December 31, 2009 reflect the consolidated financial results of Magyar Telecom B.V. and its subsidiaries (collectively, the Company ). The reporting currency is the euro, however the functional currency of continued operations is the Hungarian forint, being the currency of the primary economic environment in which the Company operates. When comparing the financial results for the year ended December 31, 2009 to the financial results for the year ended December 31, 2008, the reported results in euro have been affected by the difference between the average EUR/HUF exchange rates. The Hungarian forint depreciated against the euro by 12% with an average EUR/HUF exchange rate of during the year ended December 31, 2009 compared to the average EUR/HUF exchange rate of during the year December 31, This change in exchange rates had an impact on Hungarian forint denominated earnings when converted into euro. The Company s revenue from continued operations was EUR million for the year ended December 31, 2009 which represents a 21% decrease compared to the year ended December 31, Segment gross margin decreased by 17% from EUR million for the year ended December 31, 2008 to EUR million for the year ended December 31, Segment selling, general and administrative expenses decreased by 15.7% from EUR 84.3 million for the year ended December 31, 2008 to EUR 71.1 million for the year ended December 31, Income from continued operations decreased by 4% to EUR 43.4 million for the year ended December 31, 2009 from EUR 45.3 million for the year ended December 31, Net loss of continued operations was EUR 64.1 million for the year ended December 31, 2009 compared to EUR 33.4 million for the year ended December 31, This increase

3 in net loss was principally due to EUR 24.5 million of loss on extinguishment of debt we recorded during the year ended December 31, Mass Market Voice Mass Market Voice segment gross margin was EUR 64.2 million for the year ended December 31, 2009, representing a decrease of 25% compared to the year ended December 31, The decrease was mainly due to the devaluation of the Hungarian forint against the euro and a decrease in the number of subscribers inside our historical concession areas, as well as a decrease in the number of low margin carrier select customers outside our historical concession areas. In functional currency terms, Mass Market Voice segment gross margin decreased by 13%. Mass Market Internet Mass Market Internet segment gross margin was EUR 26.6 million for the year ended December 31, 2009, representing a decrease of 14% compared to the year ended December 31, Although our customer base increased, the decrease was primarily due to the devaluation of the Hungarian forint against the euro during the year. In functional currency terms, Mass Market Internet segment gross margin for the year ended December 31, 2009 decreased by 2% compared to the prior year, which reflects lower prices due to competition. Business Business segment gross margin was EUR 60.9 million for the year ended December 31, 2009, representing a decrease of 16% compared to the year ended December 31, The decrease was mainly due to the devaluation of the Hungarian forint against the euro and a price reduction resulting from the successful renegotiation of a major contract at the start of In functional currency terms, Business segment gross margin decreased by 4%.

4 Domestic Wholesale Domestic Wholesale segment gross margin was EUR 19.7 million for the year ended December 31, 2009, representing an increase of 8% compared to the year ended December 31, Segment gross margin is a non-gaap financial measure, which is used by management to evaluate the performance of the business segments. The following table represents the reconciliation of segment gross margin to income from continued operations: Year Ended December 31, (euro in millions) Mass Market Voice Business Mass Market Internet Wholesale Segment Gross Margin Backbone rental expenses (19.6) (19.9) Network operating expenses (10.9) (12.4) Direct personnel expenses (40.6) (52.0) Selling, general and administrative (54.8) (69.7) Depreciation and amortization (2.1) (8.1) Income from continued operations Net cash provided by continued and discontinued operations, which includes interest paid but excludes capital expenditure and debt repayments, was EUR 68.5 million for the year ended December 31, COMMENTS FROM MARTIN LEA Commenting on the financial results, Invitel Holdings President and CEO Martin Lea said, 2009 was clearly a challenging year because of the prevailing economic conditions in Hungary. We saw GDP decline by 6.3% and unemployment reached 10.5% by the end of December. Against that background, together with a significant weakening of the Hungarian

5 forint against the euro, we are pleased to be able to report, in euro, only a 4% reduction in income from continued operations. Mr. Lea went on to say, In our Mass Market business, we saw fixed line numbers reduce by less than 7% in our historical concession areas, and were also very pleased to achieve further real growth in the number of ADSL subscribers, partly due to the success of our IPTV product. In the business segment we continued to increase our customer base, as a result of the continuing development of our sales organization, and our enhanced service portfolio. This segment in particular is expected to benefit from any improvement in macro economic conditions. The domestic wholesale business continued to perform well as a result of continued increase in the demand for capacity, particularly from the mobile operators. Our results were also helped by the continuing close attention paid to our operating expenses. CONFERENCE CALL On May 11, 2010 (at 14:00 UK time, 15:00 CET, 9:00 AM ET) the CEO and CFO of Invitel Holdings will host a conference call to discuss the 2009 financial results. You can participate in the conference call by dialing (UK toll free), (International) or (U.S. toll free) and referencing Invitel Holdings. A webcast of the call and the presentation materials will be available on the Invitel s web site at under Investor Relations. The webcast will be archived for 30 days. In addition, a replay of the call will be available two hours after the call has ended and through May 25, 2010 at 11:59 PM ET. To access the replay of the call, please dial

6 (U.S. toll free) or internationally dial and enter account (286) followed by the replay access code (347123). ABOUT INVITEL HOLDINGS A/S Invitel Holdings A/S is the number one alternative and the second-largest fixed line telecommunications and broadband Internet Services Provider in the Republic of Hungary. In addition to delivering voice, data and Internet services in Hungary, it is also a leading player in the Central and Eastern European wholesale telecommunications market. Forward-Looking Statements The information above includes forward-looking statements about Invitel Holdings A/S and its subsidiaries. These and all forward-looking statements are only predictions of current plans that are constantly under review by the company. Such statements are qualified by important factors that may cause actual results to differ from those contemplated, including those risk factors detailed from time to time in the company s Securities and Exchange Commission ( SEC ) filings, which may not be exhaustive. For a discussion of such risk factors, see the company s filings with the SEC including, but not limited to, its 2008 Annual Report on Form 20-F. The company operates in a continually changing business environment, and new risk factors emerge from time to time. The company cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on its business or events described in any forward-looking statements. The company has no obligation to publicly update or revise any forward-looking statements to reflect the occurrence of future events or circumstances. ###

7 Magyar Telecom B.V. Financial Highlights (in millions of euro) Statements of Operations Year Ended December 31, 2009 Year Ended December 31, 2008 Mass Market Voice Business Mass Market Internet Domestic Wholesale Total Revenue Segment Cost of Sales (38.6) (58.6) Income (loss) from Continued Operations Interest Expense (55.6) (61.6) Foreign exchange gains (losses), net (15.7) (14.4) Gains (losses) on derivative financial instruments (17.4) 1.2 Net income (loss) from Continued Operations (64.1) (33.4) Net income (loss) from Discontinued Operations

8 Magyar Telecom B.V. Financial Highlights (in millions of euro) Balance Sheets December 31, December 31, Current Assets Assets of Disposal Group Classified as Held-for-Sale Property, Plant and Equipment, net Total Assets Total Current Liabilities Liabilities of Disposal Group Classified as Held-for-Sale Long Term Debt Total Shareholders Equity 70.7 (28.8) Total Liabilities and Shareholders Equity

MAGYAR TELECOM B.V. Puskas Tivadar u H-2040 Budaors, Hungary Phone (361) Fax (361)

MAGYAR TELECOM B.V. Puskas Tivadar u. 8-10 H-2040 Budaors, Hungary Phone (361) 801-1500 - Fax (361) 801-1501 FOR: MAGYAR TELECOM B.V. COMPANY CONTACT: Andrea Rába Financial Reporting Senior Manager of