MOL signed call option agreement with APV Rt. on treasury shares

MOL Hungarian Oil and Gas Company hereby announces that on 1 December 2005 it signed call option agreement with APV Rt. (State Privatisation and Holding Company). The agreement will enter into force upon the approval of APV’s Board of Directors, which is expected in December 2005.

According to the agreement, MOL is entitled to purchase 10,898,525 “A” Series MOL shares (representing 10% of MOL’s registered capital) owned by APV Rt. during two option periods, between 10 and 30 December 2005 and between 1 May and 27 October 2006. During the first option period, MOL can exercise its option right for maximum 3,269,558  “A” Series MOL shares (representing 3% of MOL’s registered capital), while in the second option period the option right can be exercised for all shares. If the option is exercised, the purchase price to be paid is the higher of the weighted average price of MOL shares for 90 trading days on the Budapest Stock Exchange prior to the signing or the exercise of the option. If MOL exercises the call option, it undertakes selling restrictions on the shares purchased until 31 December 2015.

Zsolt Hernádi, Executive Chairman of MOL commented:

“The opportunity to purchase the shares by MOL provides the Company with stability to implement its long-term strategy and reduces the risk resulting from marketing the significant share package, both for the Hungarian State and the other shareholders of MOL. In addition, the option agreement ensures appropriate financial flexibility for the execution of MOL´s growth strategy, already announced.”