Dividend announcement of the board of directors of MOL Hungarian Oil and Gas Plc. Dividend for the 2004 Financial Year

Dear Shareholders,

The Annual General Meeting of MOL Hungarian Oil and Gas Company Plc. held on  April 27, 2005 approved to pay a dividend of HUF 16,998 million in respect of the 2004 financial year on its ordinary shares. According to the Section 226/E of Act CXLIV of 1997 (Company Act), public limited companies have to take into account the dividend payable on treasury shares, unless the articles of association regulate otherwise, as a dividend payable to shareholders entitled to receive dividend in proportion to their shareholding. Therefore, the dividend payable on 7,088,065 treasury shares held by MOL, will be paid to the shareholders entitled to receive dividends in proportion to their shareholding.
Accordingly the gross dividend is HUF 167.42 per share.

The payment of dividend will commence on June 14, 2005 (Tuesday)

Prior to payment of the dividend, MOL will carry out a shareholder identification, based on the data of June 7, 2005. The last day of trading on the Budapest Stock Exchange for shares entitled to the dividend of 2004 financial year will be June 2, 2005. Shareholders (natural persons and legal entities) will be entitled to receive the dividend if they own MOL shares at the record date. Shareholders will remain entitled to receive the dividend within a limited five-year period beginning at the starting day of the dividend payment. The Company disclaims any obligation to pay any interest on dividends paid after June 14, 2005.

Process of dividend payment:

1. In respect of shareholders holding their shares in a security account with a Hungarian accountkeeper, the dividend will be transferred to the security account held at the accountkeeper or to his personal bank account commencing June 14, 2005, if the above mentioned accountkeeper has transferred to KELER all data required for shareholder identification in relation to the shareholder, fully complying with all relevant KELER procedures. If the accountkeeper cannot identify the owner of the holder of the respective shares by the given date, the accountkeeper may carry out the identification process later, according to KELER`s procedures. Having obtained the missing or supplementary information, KELER determines the net dividend payable and transfers it to the account of the shareholder at its accountkeeper or to his personal bank account. Please note that in such cases KELER executes supplementary transfers only once a month and neither MOL nor KELER undertake any responsibility for any delays arising from such actions. The Company therefore kindly asks all shareholders to call the attention of their respective accountkeepers to give their data in order to perform the said shareholders identification appropriately and in a timely manner, and in case of doubt they should check whether the accountkeeper has all data required for the data to be supplied to KELER. The Company and KELER Rt. do not undertake any obligation for late dividend payments arising from the incomplete, unsuitable or missing information from the shareholder or its accountkeeper. Holders of deposited shares will receive their tax certificates by post depending on the time needed for data processing.

2. In case of GDR holders, dividends will be transferred by MOL through the domestic custodian bank (HVB Bank Hungary) to the shareholders through JP Morgan (the GDR issuer). In the event of any question, we would kindly ask holders of GDRs to contact JP Morgan Chase Bank (1 Chase Manhattan Plaza, New York, NY10081, USA) the Depository for MOL`s GDR programme, or its Hungarian Custodian Bank HVB Bank Hungary, Department of Deposits at 1054 Budapest, Akadémia u. 17., phone: (361) 301 1941 or 1911.
 
 3. In case of shares introduced to the Warsaw Stock Exchange, the account keepers identify the shareholders via Polish Clearing House (KDPW) and the dividend transfer is executed via KDPW also. In case of these shares the Company pays the dividend in HUF.
 
We kindly call the attention of the shareholders to the following:
 
For Hungarian domiciled natural persons, the dividend can be paid only if the accountkeeper gives the name, tax ID number and the address of the given shareholder. The dividend cannot be paid for those Hungarian domiciled natural shareholders, who do not have a tax ID number.

For Hungarian domiciled legal entities, the dividend can only be paid without the deduction of withholding tax, if the legal entity’s tax number has been submitted by the accountkeeper.

Foreign domiciled shareholder
As base case, 20% withholding tax will be deducted from the dividend. Pursuant to inter-state treaties on avoidance of double taxation, a preferred tax rate may be applicable on shareholders with domicile of such countries in accordance with the general Tax Office license issued for MOL, if the shareholder delivers, through KELER Rt., the certificate verifying his foreign domicile to the bank that pays the dividend, also the beneficiary document subject to the provisions of the relevant inter-state treaty, as well as the authentic Hungarian translation thereof, issued in the year of dividend payment. In the absence of such certificate of residence or any double taxation treaty between Hungary and the respective country, the applicable withholding tax is 20%. Such certificates of residence are individually evaluated. Please allow for due process time by the company.

For private individuals having foreign domicile the dividend is payable to those who can present their name and address via their accountkeeper.

In case of payment of dividend due to a foreign person to a nominee, the nominee, until the last day of the calendar year of the payment, is obliged to make a duly signed declaration in Hungarian, or in Hungarian and English, on the foreign person’s name, permanent address, seat, birth place and date, fiscal residency and the amount of dividend payable or paid in forints. On the basis of this declaration, the preparation of the certificate and compliance with the information provision obligation is the responsibility of MOL. If the nominee makes his declaration after the date of the dividend payment, MOL prepares and delivers the certificate within 30 days following receipt of the declaration.  MOL prepares the certificate simultaneously with the payment, if the nominee makes the declaration with the necessary data until the date of payment and submits the certificate of fiscal residence and the declaration of beneficial ownership. If on the basis of the declaration MOL is not in a position to provide information on the foreign person receiving the dividend, it complies with its obligation by providing information on the name, seat, and if the nominee is of Hungarian residence, also the tax ID number, of the nominee and the amount of dividend paid to it.

Shareholders who have not yet received dividend in respect of the 2000, 2001, 2002, and 2003 business years, may claim their dividend through their accountkeeper. Dividends in respect of 1999 – with respect to the elapse of the 5 year forfeiture period – may be claimed up to June 20, 2004.

     The Board of Directors of
   MOL Hungarian Oil and Gas Co.