Hungarian Telephone and Cable Corp. (AMEX:HTC) announced today that its Board of Directors has elected three new people to serve on its Board of Directors: Jesper Helmuth Larsen, Robert Barnes and Michael Fortier.

Jesper Helmuth Larsen of TDC A/S (NYSE:TLD) was elected to replace Thomas Gelting, also of TDC, as one of TDC's representatives on Hungarian Telephone's Board of Directors. Mr. Larsen is currently the Chief Financial Officer of TDC's nordic broadband and fixed-line business. Mr. Larsen will also replace Mr. Gelting on Hungarian Telephone's Audit Committee. Mr. Gelting was promoted to another position within TDC and resigned from the Hungarian Telephone Board as a result of his new position and responsibilities. TDC currently owns 41% of Hungarian Telephone's outstanding common stock.

Robert Barnes and Michael Fortier were elected to the Board to replace Leonard Tow and Daryl A. Ferguson. Ashmore Investment Management, which currently owns 22% of Hungarian Telephone's outstanding stock, nominated Messrs. Barnes and Fortier for election. Messrs. Tow and Ferguson were representatives of Citizens Communications Company (NYSE:CZN). TDC and Ashmore recently increased their equity stakes in Hungarian Telephone by purchasing Citizens' entire equity stake in Hungarian Telephone. As a result of Citizens' sale, Messrs. Tow and Ferguson resigned from the Hungarian Telephone Board.

Mr. Barnes is currently a partner with Alchemy Partners LLP, a private equity group based out of London. Mr. Barnes, a chartered accountant, started his career at Coopers & Lybrand and was an executive financial officer with several entities.

Mr. Fortier is currently a consultant whose principal client is Slavia Capital, a Central European Investment Bank with offices in Bratislava and Prague. Prior to becoming a consultant in 2002, Mr. Fortier was a Managing Director of JP Morgan Chase and the head of their Central and Eastern Europe, Africa and Middle East Mergers and Acquisitions operations. Mr. Fortier resides in the United Kingdom and Slovakia.

OTHER BUSINESS

The Hungarian government did not award Hungarian Telephone a 3G mobile license in the government's recent tender process. Hungarian Telephone will continue to pursue opportunities with respect to the Hungarian mobile telephony business.

Hungarian Telephone expects that it will conclude its acquisition of PanTel at the end of January with the purchase of Royal KPN NV's (NYSE:KPN) 75.1% interest in the PanTel business.

COMMENTS FROM OLE BERTRAM

Commenting on these recent developments, Ole Bertram, President and Chief Executive Officer of Hungarian Telephone stated, "We look forward to finalizing the PanTel transaction and taking over its operations next month. While we were not able to get a 3G mobile license at this time, the acquisition of PanTel should enhance our options to enter the mobile telephony business. As for the new directors, we are very pleased with the cumulative and diverse experience that these three gentlemen will add to our Board. Their contributions will be invaluable as we move forward on the work necessary to reach our goal of consolidating the Hungarian alternative telecommunications market and becoming the most efficient full service telecommunications provider in Central Europe. I look forward to working with them. I also want to personally thank each of the departing directors for their contributions to the success to date of Hungarian Telephone."

ABOUT HUNGARIAN TELEPHONE AND CABLE CORP.

Hungarian Telephone and Cable Corp. is a provider of telephone, ISDN, Internet and other telecommunications services in the Republic of Hungary. The Company operates nearly 192,000 lines serving over 668,000 people through one Hungarian subsidiary, which has been granted 25-year telecommunications concessions by the Hungarian government in five defined operating regions.

Note: This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These and all forward-looking statements are only predictions or statements 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 as a result of those factors detailed from time to time in the company's Securities and Exchange Commission filings. The foregoing information should be read in conjunction with the company's filings with the U.S. Securities and Exchange Commission including, but not limited to, reports on Forms 10-K and 10-Q. The company has no obligation to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances.