The Board of Directors of MOL decided on the capital increase of the company

MOL Hungarian Oil and Gas Public Limited Company hereby announces that at the meeting held on 7 September, 2006, the Board of Directors passed a resolution on the increase of the share capital of the company from HUF 108,985,250,578 to HUF 109,330,376,578 and on the listing of these shares on the stock exchange following the registration of the capital increase at the Court of Registration.

In accordance with the capital increase the Board of Directors modified article 7.2 of the Articles of Association as follows:

7.2.The Company's share capital amounts to HUF 109,330,376,578 i.e. one hundred and nine billion, three hundred and thirty million, three hundred and seventy six thousand, five hundred and seventy eight Hungarian forints by:

a.) 109,329,797 pieces registered ordinary shares of the series "A" with a par value of HUF 1,000, and 578 pieces registered ordinary shares of the series "C" with a par value of HUF 1,001, providing for identical rights to the holders of such shares, on a price of HUF 6,000, issued against the in-kind contribution, and transferred at the same time with the obligation of the takeover of the shares, and [...]

The Board of Directors hereby added to article 7.3. of the Company's Articles of Association as follows:

7.3. [..]

With regard to the conversion of 194 pieces of bonds, the Board of Directors decided, on September 7, 2006, on the issuance of 345,126 pieces ordinary shares of the series "A" taken into account the issuance value of HUF 5,621 per shares due to the above conversion rate.

The capital increase was made as part of the convertible bond programme approved by the EGM held on 1 September 2003. The approved incentive scheme links a significant part of the compensation of the members of the Board of Directors and senior managers to the development of the price of MOL shares on the stock exchange. Within the framework of the programme, MOL issued a total of 1,200 convertible bonds with a par value of HUF 10 million each. Bond holders submitted 194 bonds for conversion, therefore 345,126 shares will be allocated to them after the registration of the capital increase by the Court of Registration.