Magyar’s CEO Christopher Mattheisen has clarified cost structure and strategic points of activities during yesterday’s press conference. Magyar Telekom is planning to consolidation 50 subsidiaries in one company and expands activities in Southern Eastern Europe. Company is expecting savings from restructuring in billions of forint. Cost related to investigation of four contracts in Montenegro could reach HUF 8 bn. (HUF 4.1 bn in 2006 and expected HUF 4 bn in 2007). Our view: Clarification of costs, structure and future expansion was expected. We believe the news should have a neutral trading impact.