Swisscom Buys Hungarian Antennas

BERN, Switzerland -- According to the steering committee for the sale of the 75 percent stake (plus one share) in Antenna Hungária's equity held by the Hungarian government, Swisscom Broadcast Ltd submitted the most attractive bid at HUF 5,250 per share, making the price tag on the share package around CHF 286 million. The transaction still requires the approval of the Hungarian, European and Swiss competition authorities.

Once Swisscom Broadcast has completed the acquisition of 75 percent (plus one share) of Antenna Hungária, it will be obliged under Hungarian capital market regulations to make a public offer at the same price to Antenna Hungária's public shareholders. The leading Swiss broadcasting company will make this offer in accordance with the requirements of Hungarian capital market legislation subject to the consent of the Hungarian, European and Swiss competition authorities. Swisscom Broadcast set the price for Antenna Hungária following a comprehensive due diligence. The acquisition of a 75 percent stake (plus one share) in Antenna Hungária will give Swisscom Broadcast operational and strategic control of the company. The takeover is expected to be completed in the fourth quarter of 2005 and will reduce Swisscom's equity free cash flow (EFCF) in 2005 by the amount of the acquisition price.

Swisscom AG