Financial overview of the Budapest Exchange Ltd., 2004

The Budapest Ltd (BSE) publishes its financial overview for the year 2004 according to the Resolution no. 16/2003 of the AGM held on 28 April, 2003.

According to unaudited preliminary figures, the BSE achieved in the year 2004 ordinary earnings of HUF 1.02bn (EUR 4m), which is 695% of the previous year’ figure and exceeds the 2004 target by 45%. The high growth is primarily due to the significant expansion of stock trade volume (average daily turnover of HUF 7.5bn (EUR 30m) in 2003 increased to HUF 10.3bn (EUR 41m) in 2004) as well as to increased efficiency.

BALANCE SHEET Thousand HUF /EUR Ser. Nr. DENOMINATION 31 December 2003 31 December 2004 P c D a b HUF EUR HUF EUR 1. A. term assets 2 555 785 10392 2 787 981 11337 2 I. Intangible assets 15 764 64 20 708 84 3 II. Tangible assets 166 249 676 197 443 803 4 III. Invested financial assets 2 373 772 9652 2 569 830 10449 5 B. Current assets 2 267 547 9220 2 720 160 11061 6 I. Inventories 4 547 19 9 382 38 7 II. Accounts receivable 91 524 372 109 666 446 8 III. Marketable securities 2 147 574 8732 1 870 711 7607 9 IV. Cash and cash equivalents 23 902 97 730 401 2970 C. Accrued income and deferred 93 569 381 91 055 370 10 expenses 11 TOTAL ASSETS (rows 1.+5.+10.) 4 916 901 19993 5 599 196 22767 12 D. Shareholders’ equity 4 348 552 17682 5 372 552 21846 13 I. 541 348 2201 541 348 2201 14 II. Additional paid in capital 0 0 0 15 III. Treasury stock 2 576 356 10476 2 576 356 10476 16 IV Accumulated profit (loss) 1 230 848 5005 1 230 848 5005 17 V. Depository stock 0 00 0 18 VI. Revaluation reserve 0 00 0 19 VII. Retained earnings 0 0 1 024 000 4164 20 E. Provisions 0 00 0 21 F. Liabilities 457 056 1859 79 588 324 22 I. Deferred liabilities 0 00 0 23 II. Long-term liabilities 0 00 0 24 III. Current liabilities 457 056 1859 79 588 324 G. Accrued expenses and deferred 111 293 453 147 056 598 25 income TOTAL LIABILITIES (rows 4 916 901 19993 5 599 196 22767 26 12.+20 + 21.+25) AVERAGE NUMBER OF EMPLOYEES 62 63

INCOME STATEMENT Thousand HUF/EUR Ser. Nr. DENOMINATION 31 December 2003 31 December 2004P e f a b HUF EUR HUF EUR I. Operating revenues 1 529 586 6082 1 852 200 7365 II. Other revenues 28 159 112 17 000 68 III Operational costs and expenses 1 655 064 6581 1 159 700 4611 EARNINGS FROM STOCK EXCHANGE A. OPERATIONS (I.+II -III) -97 319 -387 709 500 2821 IV. Income from financial activity 247 687 985 324 600 1291 V. Expenses from financial activity 21 318 85 9 700 39 EARNINGS FROM FINANCIAL B. ACTIVITY (IV-V) 226 369 900 314 900 1252 ORDINARY EARNINGS OF STOCK C. EXCHANGE (+-A.+-B.) 129 050 513 1 024 400 4073 VI. Extraordinary revenues 0 00 0 VII. Extraordinary expenses 257 1 400 2 EXTRAORDINARY EARNINGS (VI.- D. VII.) -257 -1 -400 -2 E. EARNINGS BEFORE TAXES (+-C.+-D.) 128 793 512 1 024 000 4072 VIII Tax payable 0 00 0 F. EARNINGS AFTER TAXES (+-E.-VIII.) 128 793 512 1 024 000 4072 Recourse of accumulated profit to IX and shares 223 083 887 0 0 X. Ratified dividends, shares 351 876 1399 0 0 G. RETAINED EARNINGS ( + - F + IX. -X.) 0 0 1 024 000 4072

Notes

Balance sheet

The increase in value of intangible and tangible assets are due to the developments in 2004 exceeding HUF 100m (EUR 0.4m). The purchase of additional 15 shares of KELER, each with a nominal value of HUF 5,000,000 (EUR 20,331) caused the increase in invested financial assets. Under current assets the value of securities, cash and cash equivalents reached HUF 2.2 bn (EUR 9m) by 31 December 2003, and had increased to HUF 2.6bn (EUR 10.6m) by 31 December 2004. The AGM of the on 21 April 2004 decided to pay HUF 352m (EUR 1.4m) dividends oppressing the retained earnings of 2003 and the accumulated profit. In the report dividends were stated as liabilities.

Profit and loss

The reason for the decrease in operational costs and expenses year on year is the write–off of the MMTS trading system in 2003, therefore the depreciation has decreased from HUF 602m (EUR 2.4m) to HUF 70mn (EUR 0.3m) from 2003 to 2004.

The increase in earnings from financial operations is mainly due to the growth of the securities, cash and cash equivalents of BSE causing the increase of interests paid on deposits of cash and cash equivalents.