May 13th 2005

MOL significantly improved its competitiveness on international markets

MOL significantly improved its competitiveness on international markets in Q1 2005, which is well reflected in the significant growth of export revenues. Even in conditions of strong market competition the Group was able to significantly increase its export revenues (by 62%): from HUF 135.6 bn in Q1 2004 to HUF 220.2 bn in Q1 2005 primarily due to increased fuel and petrochemical products volumes sold. As a result MOL Group’s operating profit for Q1 2005 reached 91.6 bn HUF.

Exploration and Production operating profit was largely influenced by the increasing crude production of ZMB field as well as by the favorable development of the economic environment. At the Manzalai field in Pakistan, construction of the gas plant was completed. At the same time, on 29 January, 2005, sales of natural gas from test production started.

In the Refining and Marketing segment the motor fuel export volume increased by 13%, mainly as a result of increased sales in Austria, the Czech Republic and Poland. In Hungary, market demand for motor gasoline declined. At the same time, the consumption of motor diesel increased by 4% in Hungary.

The dynamic development in the petrochemical segment’s results (156% increase y-o-y) significantly contributed to the Group’s results. Besides the earlier realized investments, the external environment, synergies between MOL Group’s members and the improving operational efficiency had significant impact on the business results.

The weight of export sales increased in our sales portfolio due to the new marketing strategy and improving commercial efficiency, as a result of single channel sales activity, mainly on Italian, French and German markets. Sales of olefin products also increased by 17% y-o-y, due to the start-up of the new olefin plant at TVK.

Mr Zsolt Hernádi, Executive Chairman of MOL commented: “The further improvement in our profitability justifies our previous investment decisions. The increase in sales volumes and in the profit contribution of our international investments provides further growth and appropriate returns to our shareholders. Furthermore, our strong financial position provides a solid base for the continued execution of our strategy. ”