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					         Hungary’s Leading Mortgage Bank




                   OTP Mortgage Bank Ltd.
            Inaugural Covered Mortgage Bond Issue

                                European Roadshow




Page 1
         Hungary’s Leading Mortgage Bank



         Legal statement
             This Document must not be distributed in the United States
             or any U.S. persons as defined in the regulations of the
             Securities Act of 1933, as amended. This Document must
             not be distributed in Canada or to Canadian persons. The
             securities offered hereby have not been and will not be
             registered under the U.S. Securities Act of 1933 and may
             not be offered or sold in the United States or to U.S.
             persons.




Page 2
         Hungary’s Leading Mortgage Bank




         Agenda

            Company Profile
            CoveredMortgage Bonds in Hungary
            Mortgage Business
            Inaugural Issue
            Conclusion
            Appendices


Page 3
         Hungary’s Leading Mortgage Bank




             Introduction




Page 4
         Hungary’s Leading Mortgage Bank


           The Act XXX of 1997 on Mortgage Loan Companies and on Mortgage
           Bonds contains legislation which enables qualifying Hungarian Banks to
                               issue Covered Mortgage Bonds


         OTP Mortgage Bank is launching its 1st EURO denominated Covered
                                  Mortgage Bond


          OTP Mortgage Bank is the largest Hungarian mortgage bank with
                                assets of € 3.3 Bn

            OTP Mortgage Bank is the No.1 Hungarian mortgage provider



Page 5
         Hungary’s Leading Mortgage Bank




           Company profile




Page 6
         Hungary’s Leading Mortgage Bank




         Introduction of OTP Mortgage Bank

            OTP Mortgage Bank commenced operations on February 1, 2002
            Member of OTP Group - the largest financial service provider in
            Hungary
            One of the Highest rated Hungarian Credit Institution:
                        Moody’s          A2 / P1
            Specialised credit institution
            Registered capital: 80 Million EUR (30.09.2004)
            Asset quality: low risk profile
            Auditor: Deloitte & Touche
            Coverage Supervisor: PWC


Page 7
         Hungary’s Leading Mortgage Bank



         Strategy of OTP Mortgage Bank
            Products:
                 Subsidized and non-subsidized mortgage loans
                 Land mortgage loans
                 Home equity loans (in EUR and CHF)
            Maintain the market leader position
            Deliver high quality services as the largest provider
            Distribution channels:
                 Broad network of branches (in 250 out of 400 branches )
                 Alternative distribution channel: insurance agents, mobile bankers
                 Additional partners


Page 8
         Hungary’s Leading Mortgage Bank

         What could lead OTP Mortgage Bank to be the No.1 mortgage provider ?

         Our Successful Business Model
                                       3.
                                                         OTP Bank                        Clients



                                                                    1-2.
                                                    4.              1. Conducting the mortgage business
                                OTP MB                                 under one umbrella.

                                                                    2. Loan granting after approval of OTP
                                                                       MB according to its rules;.

                                                                    3. Regular loan purchase and
          Capital Markets                   OTP Factoring              refinancing through CMB issuance.

                                                                    4. Credit enhancement.
                                            OTP Real Estate
                                              Company


Page 9
          Hungary’s Leading Mortgage Bank
                                                                                           Rapidly growing…
           Asset growth
                                                        Total assets development

                                          3500

                                          3000

                                          2500
                            EUR Million


                                          2000

                                          1500

                                          1000

                                           500

                                             0
                                                 2002     2003 1Q     2003     2004 1Q   2004 3Q

                    The Government’s new Housing Policy stimulates the market
                    OTP Bank’s leadership in the housing sector for more than 50 years
                    Product enhancement

Page 10
          Hungary’s Leading Mortgage Bank
                                                                  … and deleivering excellent financial figures.

          Financial performance of OTP Mortgage Bank
                                      Profit before tax                                        A
                                                                                             RO EDevelopment
                         14,00                                                   50
                                                                                 45
                         12,00
                                                                                 40
                         10,00
           HUF Billion




                                                                                 35
                          8,00
                                                                                 30




                                                                             %
                          6,00
                                                                                 25
                          4,00
                                                                                 20
                          2,00
                                                                                 15
                          0,00                                                   10
                             2001    2002                 2003   2004 forecast        2002           2003      2004 forecast




                         Capital Adequecy Ratio stands at 9.41%
                         Average Net Interest Margin stands at 4.84%

Page 11
          Hungary’s Leading Mortgage Bank




          Covered Mortgage Bonds in Hungary

             Background to the Hungarian Mortgage
             Market
             Characteristics of the Current Housing
             Market
             Unique Government Subsidy System



Page 12
          Hungary’s Leading Mortgage Bank



          Legal Framework
                Special law on mortgage banking: Act XXX. 1997
                    Basis: German model
                        strict ratios - 60% LTV (OTP MB average: 42-48%)
                        specialist principle ( Mortgage Bank – as issuer of MBs )
                        subject to special supervision (Trustee - coverage supervisor)
                        Special property valuation (three methods)
                    Mortgage Bonds: priority status for MB holders (claim against liquid
                    assets)
                Recent developments
                    Balance principle (NPV rule)
                    Derivatives are allowed for hedging purposes
                    EU citizens are eligible for subsidized mortgage loans
                    Repurchase of CMBs is allowed
                Interest Rate Subsidy scheme (accepted by EU)


Page 13
          Hungary’s Leading Mortgage Bank


          Three Operating Mortgage Banks
                  FHB (1998)
                    Partially (53 %) state owned
                    main focus on residential mortgage, refinancing
                    predominantly public placements
                  HVB Mortgage Bank(1999)
                    owned by HVB Group
                    commercial and residential mortgage
                    private and public placements
                  OTP Mortgage Bank (2002)
                    owned by OTP Group, own distribution channels (400 branches)
                    only residental mortgage loans
                    private and public placements


Page 14
          Hungary’s Leading Mortgage Bank




          Competition
                                                Market shares (loans)

                         70,0%
                         60,0%
                         50,0%
                         40,0%
                         30,0%
                         20,0%
                         10,0%
                          0,0%
                                  2002      1H 2003   2003     1H 2004   3Q 2004

                                                  OTP MB   FHB MB   HVB MB

               OTP Mortgage Bank is undisputed No.1
               Based on the comprehensive network of OTP Bank
               Strategic plan is to remain over 50% marketshare

Page 15
          Hungary’s Leading Mortgage Bank




          Agenda

             Background to the Hungarian Mortgage
             Market
             Characteristics of the Current Housing
             Market
             Unique Government Subsidy System



Page 16
          Hungary’s Leading Mortgage Bank


          Comparison of indicators
               Outstanding Residential Mortgage Loans as a                                        Home ownership ratios across Europe (%)
                               % of GDP
                                                                                             Hungary                                                95
           0
          8%
                                                                                               Ireland                                         82
           0
          7%
                                                                                                Spain                                          80
          6%
           0                                                                                  Belgium                                     72
                                                                                                 Italy                                   68
           0
          5%
                                                                                                  UK                                     67
           0
          4%
                                                                                             Denmark                                60
          3%
           0                                                                                 Portugal                               59
                                                                                               France                          54
           0
          2%
                                                                                           Netherlands                    46
           0
          1%
                                                                                             Germany                 40
           %
           0                                                                               Switzerland          28
               L
               N   K K
                   D U   D   S   P
                                 T   O U5 L
                                     N E1 IR   S
                                               E   F
                                                   IN   B   R
                                                            F   I   L
                                                                    E   H
                                                                        U   A    Z L
                                                                                CK P   K
                                                                                       S



                                                                                Source: European Mortgage Federation, Eurostat


Page 17
          Hungary’s Leading Mortgage Bank




          Housing Construction is Gaining Momentum
                                      New Dwellings / 1000 Residents in Hungary
                            4

                           3,5

                            3

                           2,5

                            2

                           1,5

                            1

                           0,5

                            0
                                 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
                                                                                          F

             Source: CSO


Page 18
          Hungary’s Leading Mortgage Bank


          Interest rate environment 2003-2004
                                                                                                          25-25 bp rate
      14%                                                                                               decrease 23 March
                                                                  300 bp rate increase                                           50 bp rate cut 4 May,
                                                                                                         and 6 April 2004
                                        200 bp rate increase       28 November 2003                                              17 Aug & 19 October
      13%                                  19 June 2003                                                                          2004
                100-100 bp rate cut
      12%         to defend HUF
                16&17 January 2003
      11%


      10%
                     100 bp rate increase
                     11 June 2003
          9%


          8%


          7%


          6%
                                                              inverse yield curve
          5%                                                  3M rate + 300 bp
                                                              Y15 rate +127 bp
                            straightening of yield curve
          4%
           1.2.03 2.2.03                                             10.2.03
                        3.2.03 4.2.035.2.03 6.2.037.2.03 8.2.03 9.2.03           1
                                                                           11.2.032.2.031.2.04 2.2.043.2.04 4.2.045.2.04 6.2.047.2.04 8.2.04 9.2.0410.2.04
                                                   M3       M6       Y1      Y3       Y5       Y10       Y15      2w repo




Page 19
          Hungary’s Leading Mortgage Bank


          Rising Real Wages
                           Retail Loans Outstanding (HUF billion) vs. Real Wage Growth
          2 500                                                                                                                                                                          20%

                                                                                                                                       13,6%                                  2 165
                                                                                                                                                                                         15%
          2 000
                                                                                                                                                                1 814
                                                  7,2%                                                                                                                                   10%
                                                                                                                           6,4%                     9,4%
                                                                                   4,9%
                                                                                           3,6%                                                   1 519
                                                                                                   2,5%                                                           2,0%          2,2%     5%
          1 500                                                                                                1,5%
                            -1,4%
                                                                                                                                                                                  1143   0%
                                       -3,9%
                                                                        -5,0%                                                                                           982
          1 000    -7,0%
                                                                                                                                      802                 844                            -5%
                                                                                                                                            684
                                                             -12,2%                                                             551                                                      -10%
           500                                                                                                      410
                                                                                                                          336
                                                                                                        287
                                      196        189                                                          195                                                                        -15%
                  170      176                              172        153        140 139 130 184 131
                                            44         84         82         81
                                 33
             0                                                                                                                                                                           -20%
                   1991     1992       1993       1994       1995       1996       1997    1998    1999        2000        2001        2002         2003         2004 F 2005F

                  Housing Loans                        Consumer loans                         Real Wage Growth                                    Loan Growth rate



Page 20
          Hungary’s Leading Mortgage Bank


          Macro assessment
                                                                             2003         2004F         2005F
           Real GDP growth                                                   2.9%          3.9%         3.8%
           Inflation (average)                                               4.7%          6.8%         4.5%
           Nominal wage increase                                            14.3%          7.2%         7.7%
           Final consumption                                                 5.9%          3.3%         2.2%
           Household consumption                                             6.5%          3.5%         2.9%
           Investment growth                                                 4.7%         10.2%         6.9%
           Budget deficit                                               HUF -1,159      HUF -1,170    HUF -1,182
           (ESA)                                                            bn             bn            bn
              as a % of GDP                                               -6.2%          -5.8%         -5.4%

           Current Account Balance*                                     EUR -6.5 bn     EUR -7.4 bn   EUR -7.8 bn
             as a % of GDP                                                -8.7%           -9.4%         -8.7%
           1yr T-bill yield (average)                                     8.0%            10.9%         8.2%

           * Reinvested earnings calculated as FDI
           Prepared by OTP Research Center in May 2004 based on sources from NSB, NBH




Page 21
          Hungary’s Leading Mortgage Bank




          Agenda

             Background to the Hungarian Mortgage
             Market
             Characteristics of the Current Housing
             Market
             Unique Government Subsidy System



Page 22
          Hungary’s Leading Mortgage Bank



          Government Subsidy System in Hungary

                 Direct subsidies
                         For families with children
                         Disabled people
                         VAT refund (EUR 1600)
                         Income tax deductibility

                 Indirect subsidies (Interest Rate Subsidies)
                         Asset side Interest rate subsidy (so called„supplementary”)
                         Liability side Interest rate subsidy




Page 23
          Hungary’s Leading Mortgage Bank




            Mortgage Business




Page 24
          Hungary’s Leading Mortgage Bank


          Mortgage Loans at OTP Group
          Cumulative                                                                                                        HUF bn.                                                                                                     Monthly

              800                                                                                                                                                                                                                       5 0 ,0

                                                                                                                                                                                                                                        4 5 ,0
              700                 4 3 ,8                    4 3 ,2
                                                                        4 0 ,4                                                                                                                                                          4 0 ,0
              600
                                              3 4 ,5                                  3 5 ,2      3 4 ,9                                                                                                                                3 5 ,0

              500
                                                                                                                            2 9 ,3                                                                                                      3 0 ,0

              400                                                                                               2 4 ,9                                                                                                                  2 5 ,0
                                                                                                                                          2 2 ,5
                                                                                                                                                      2 0 ,0                                                                            2 0 ,0
              300                                                                                                                                                                                                              1 6 ,5
                                                                                                                                                                    1 7 ,0                                1 6 ,3
                                                                                                                                                                                1 5 ,1        1 6 ,0                    1 5 ,4          1 5 ,0
              200
                                                                                                                                                                                                                                        1 0 ,0
              100
                                                                                                                                                                                                                                        5 ,0

                   0                                                                                                                                                                                                                    0 ,0
                         0


                                     1


                                                   1


                                                               0


                                                                             1


                                                                                         0


                                                                                                       1


                                                                                                                   1


                                                                                                                                 9


                                                                                                                                             1


                                                                                                                                                           0


                                                                                                                                                                       1


                                                                                                                                                                                     0


                                                                                                                                                                                                 1


                                                                                                                                                                                                               1


                                                                                                                                                                                                                           0
                    .3


                                  .3


                                              .3


                                                            .3


                                                                        .3


                                                                                      .3


                                                                                                  .3


                                                                                                                .3


                                                                                                                            .2


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                                                                                                                                                                    .3


                                                                                                                                                                                .3


                                                                                                                                                                                              .3


                                                                                                                                                                                                          .3


                                                                                                                                                                                                                        .3
                     6


                                 7


                                               8


                                                           9


                                                                         0


                                                                                     1


                                                                                                   2


                                                                                                               1


                                                                                                                             2


                                                                                                                                         3


                                                                                                                                                       4


                                                                                                                                                                   5


                                                                                                                                                                                 6


                                                                                                                                                                                             7


                                                                                                                                                                                                           8


                                                                                                                                                                                                                       9
                  .0


                              .0


                                            .0


                                                        .0


                                                                      .1


                                                                                  .1


                                                                                                .1


                                                                                                            .0


                                                                                                                          .0


                                                                                                                                      .0


                                                                                                                                                    .0


                                                                                                                                                                .0


                                                                                                                                                                              .0


                                                                                                                                                                                          .0


                                                                                                                                                                                                        .0


                                                                                                                                                                                                                    .0
              03


                             03


                                         03


                                                       03


                                                                   03


                                                                                 03


                                                                                             03


                                                                                                           04


                                                                                                                       04


                                                                                                                                     04


                                                                                                                                                 04


                                                                                                                                                               04


                                                                                                                                                                           04


                                                                                                                                                                                         04


                                                                                                                                                                                                     04


                                                                                                                                                                                                                   04
             20


                         20


                                       20


                                                   20


                                                                 20


                                                                             20


                                                                                           20


                                                                                                       20


                                                                                                                     20


                                                                                                                                 20


                                                                                                                                               20


                                                                                                                                                           20


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                                                                                                                                                                                     20


                                                                                                                                                                                                   20


                                                                                                                                                                                                               20
                             O TP M B                                            O TP B a nk                                          M o nthly dis burs e me nt



Page 25
          Hungary’s Leading Mortgage Bank


          Diversified Mortgage Loan Portfolio
                                                               All data as of 30 Sept. 2004



                     Distribution of mortgage portfolio by size                               Distribution of portfolio by maturity



                                                                                                      3,5%       0,6%
                              3,0%      2,9%                                                                              13,0%
                12,1%                                       40,1%
                                                                                       24,9%
                                                                                                                                      16,9%

             42,0%
                                                                                              41,2%
                                                                                 in 1 year             1 - 5 years           5 - 10 years
           up to HUF 5M         5-10M                 10-15M
           15-20M               over 20M                                         10 - 15 years         15- 20 years          20 - 25 years
                                                                                 Over 25 years

             Average loan size: € 17K
                                                                                                   Average maturity: 19 year



Page 26
          Hungary’s Leading Mortgage Bank


          Diversified Mortgage Loan Portfolio
                                                          All data as of 30 Sept. 2004

                       Distribution of mortgage portfolio by                             Geographic concentratin of loans
                                      purpose


                     12%                            21%                                    Region                    %
                                                                                   Budapest                         23,08%
                                                                                   South-Alföld                      9,03%
                                                                                   North-Hungary                     6,64%
                                                               9%
                                                                                   North-Alföld                     14,79%
                                                                                   Middle-Hungary                   14,24%
                   58%                                                             West-Dunántúl                    10,60%
              Home building                 Purchase of new home                   Middle-Dunántúl                  11,90%
              Purchase of used home         Home improvement                       South-Dunántúl                    9,72%




Page 27
          Hungary’s Leading Mortgage Bank

                                                             Conservative risk management,
          LTV ratio
                                  19,0%               8,8%
                                                                 10,1%

                        10,1%



                                35,0%                             17,1%
                             under 30%      30-40%           41-50%

                             51-60%         61-70%           over 70%

             LTV ratio: max. 60%
             In case of civil servants the government provides suretyship above 60 % LTV
             Average LTV-Ratio (based on original valuation): 46.71%
             Average loan size is € 17K


Page 28
          Hungary’s Leading Mortgage Bank

                                                                                               … results low risk profile.

          Breakdown of the Coverpool & Asset Classification
                                                                        E U R M illio n                  0 9 .3 0 .2 0 0 4
          N   o m in a l   am ount of C M B s                                                         2 947 135
          N   o m in a l   a m o u n t o f th e o r d in a r y c o v e r p o o l                      2 928 696
          G   overnm       e n t G u a r a n te e o u t o f o r d e n a r y c o v e r                   746 346
          G   overnm       e n t S e c u r itie s (S u p p le m e n ta r y c o v e r )                  163 091

          S ta te r is k in o r d e n a r y a n d s u p p le m e n ta r y c o v e r                           2 9 ,4 1 %
          O v e r c o lla te r is a tio n                                                                   1 0 4 ,9 1 %

          A v e r a g e d u r a tio n o f c o v e r p o o l                                                        5 .8 6

                                          A s s e t s C l a s s i f i c a t i o n 2 0 0 4 .0 9 .3 0
                                                                                   T o ta l H U F           %
          0                                                                      703 082 512 150                9 4 ,4 7 %
          1 -3 0                                                                   29 695 386 633                 3 ,9 9 %
          N orm al                                                               732 777 898 783                9 8 ,4 6 %
          W a tc h                                                                 11 441 665 111                 1 ,5 4 %
          R e p u r c h a se d b y th e O T P                                        3 664 707 245                0 ,4 9 %
          W a tc h a s a % o f th e w h o le p o r tfo lio                          1 ,5 4 %
          Sum                                                              744 219 563 894                   1 0 0 ,0 0 %



Page 29
          Hungary’s Leading Mortgage Bank




          InvestorProtection
          OTP Mortgage Bank further enhances investor protection
           through the following product features:

             The Cover Asset Pool consists of only Residential
             Mortgage Assets
             The Bank is providing voluntary over-collaterisation
             All market risk in the Cover Asset Pool is hedged
             Counterparty risk will be mitigated according to rating
             agency requirements (CSA in derivative products)

Page 30
          Hungary’s Leading Mortgage Bank



          Property valuation, underlying principles
                 Valuations are organised by OTP Real-estate
                 PLC. (according to Mortgage Bank internal
                 regulation)

                 Valuations methods are defined by Mortgage
                 Bank,
                      The comparative value method
                      The real value method
                      The income value method
                 Experts’ performances are quaterly assesed


Page 31
          Hungary’s Leading Mortgage Bank




                                        In practice:




Page 32
          Hungary’s Leading Mortgage Bank



          Price comparision based on actual market data
                  supplied by Stamp Duties Office




Page 33
          Hungary’s Leading Mortgage Bank

                            Selection of comparative price data




Page 34
          Hungary’s Leading Mortgage Bank




                                     Analysing photos




Page 35
          Hungary’s Leading Mortgage Bank



          Loan Book Summary
             Prudent credit policy

             No undue risk concentration

             LTV risk profile – very strong mark to market

             Highly overcollaterised

             30% State gurantee behind the pool

             Obligation of parent bank to repurchase the non-performing loans


Page 36
          Hungary’s Leading Mortgage Bank




           OTP Morgage Bank Inaugural € CMB




Page 37
          Hungary’s Leading Mortgage Bank

                                                           Entering the € market is cornerstone
          OTP Mortgage Bank Funding Strategy
                Funding facilities in HUF               100%
                                                                 2%
                                                                            0%        3%
                                                                                       7%
                                                                                         Investor base
                                                                                                  5%
                                                                                                                          7%
                                                                     12%
                                                         90%                                        18%                   18%
                                                                                     11%
                                                         80%
                                                                                                     9%                   9%
                    Issuance Programs                    70%

                                                         60%
                    OTP Group financing                  50%
                                                                     86%             79%
                    Domestic Institutional Investors 40%                                            68%                   67%
                                                         30%
                    Retail                               20%
                    International Institutional Investors10%
                                                          0%
                                                               2003.12.31        2004.03.31     2004.06.30         2004.09.30

                                                          OTP Bank    Other OTP Group members   Institutional investors    Retail investors




                Outstading CMB amounts HUF 728 Bn (~€ 3 Bn)
                Limited domestic financing strength of investors

Page 38
          Hungary’s Leading Mortgage Bank

                                            Entering the € market is cornerstone
           OTP Mortgage Bank Issuance Strategy

           The successful implementation of OTP € CMBs will
              be characterised by the followings:

                 Continued liquidity via regular issuace
                 Strong secondary market performance
                 Ongoing product development to ensure CMB
                 remains investor focused



Page 39
          Hungary’s Leading Mortgage Bank

           Summary of the transaction
          Issuer:                      OTP Mortgage Bank Ltd. 100%
                                       owned by OTP Bank Ltd.
          Amount:                      € 200 Mn
          Maturity:                    7 – 10 years
          Expected rating:             A1 Moody’s
          Listing:                     Luxembourg Stock Exchange
          Documentation:               Under the € 1Bn EMTN Program
          Law:                         Hungarian
          Coverage Supervisor:         PWC
          Status:                      Securities will be unsubordinated obligations of the Issuer
                                       ranking pari passu among themselves and will be covered in
                                       accordance with the Hungarian Act on Mortgage Loan Credit
                                       Institutions and on Mortgage Bonds
          Clearing:                    Keler, Clearstream
          Joint Lead Managers:         Deutsche Bank, OTP Bank
          Dealers:                     ABN Amro, BNP Paribas, Citibank,
                                       DZ Bank, JP Morgan
Page 40
          Hungary’s Leading Mortgage Bank




                                            Conclusion




Page 41
          Hungary’s Leading Mortgage Bank



           Key Considerations
                 OTP Mortgage Bank – The largest Hungarian Mortgage Provider

                 OTP Mortgage Bank – High Quality Assets originated by a market
                 leader

                 Hungarian Mortgage Legislation – Investor focused with very
                 strong CMB investor protection

                 OTP Mortgage Bank € CMB issue – Opportunity for investors to
                 diversify their holdings and aquire high quality bonds with a strong
                 credit rating


Page 42
          Hungary’s Leading Mortgage Bank




                                            Appendix




Page 43
          Hungary’s Leading Mortgage Bank
                                                                                                                                                                                                                Appendix


          Government Subsidy Scheme
            Old S ubsid y S c he m e - s ubs idy s c he m e fo r lo a ns g ra nte d be fo re 16.06.2003
             Re fina nc ing              Lo a n In te re s t              Lo a n Co n ditio ns     As se t S ide S ubs idy              Lia bility S ide S ubs idy                S ubsidy Co nditio ns
                  CMB          MIN(c oupon of CMB - 2% ; 6% )            m a x 30 m illion HUF                No                    MIN(c oupon of CMB + 2% ; 10% )              a va ila ble for the firs t
                                                                                                                                                                                 20 ye a rs of the loa n;
                                                                                                                                                                                 a fte r the firs t 5 ye a rs
                                                                                                                                                                                 of the loa n s ubs idy
                                                                                                                                                                                 a c c ording to the ne w
                                                                                                                                                                                 s hc e m e
                  CMB           MIN(c oupon of CMB - 2% ; 6% )         m a x 10 m illion HUF;        be nc hm a rk - 3,5%            MIN(c oupon of CMB - 1% ; 7% )              a va ila ble for the firs t
                                                                      only for ne w prope rtie s ;                                                                               20 ye a rs of the loa n;
                                                                      only for m a rrie d pe ople                                                                                a fte r the firs t 5 ye a rs
                                                                                                                                                                                 of the loa n s ubs idy
                                                                                                                                                                                 a c c ording to the ne w
                                                                                                                                                                                 s hc e m e
            othe r tha n CMB        m a x (be nc hm a rk + 4% )        m a x 10 m illion HUF;        be nc hm a rk - 2%                             No                           a va ila ble for the firs t
                                                                      only for ne w prope rtie s ;                                                                               20 ye a rs of the loa n
                                                                      only for m a rrie d pe ople


            Ne w S ubs idy S c he m e - sub sidy sc he m e fo r lo a ns g ra nte d a fte r 16.06.2003
             Re fina nc ing              Lo a n In te re s t             Lo a n Co n ditio ns     As se t S ide S ubs idy               Lia bility S ide S ubs idy            S ubsidy Co nditio ns
                   CMB                      m a x 6%                 m a x 15 m illion HUF ;                 No              MIN(c oupon of CMB; 105% of be nc hm a rk) - 1% a va ila ble for the firs t
                                                                     for us e d prope rtie s                                                                                 20 ye a rs of the loa n
                   CMB                      m a x 5%                 m a x 15 m illion HUF ;                 No                MIN(c oupon of CMB; 105% of be nc hm a rk)    a va ila ble for the firs t
                                                                     only for ne w prope rtie s                                                                              20 ye a rs of the loa n
                   CMB                      m a x 5%                 m a x 15 m illion HUF ;       be nc hm a rk - 3,5%      MIN(c oupon of CMB; 105% of be nc hm a rk) - 3% a va ila ble for the firs t
                                                                     only for ne w prope rtie s ;                                                                            20 ye a rs of the loa n
                                                                     only for m a rrie d pe ople
                                                                     or for s ingle s with
                                                                     c hildre n
            othe r tha n CMB       m a x (be nc hm a rk + 4% )       m a x 15 m illion HUF ;        be nc hm a rk - 2%                              No                           a va ila ble for the firs t
                                                                     only for ne w prope rtie s ;                                                                                20 ye a rs of the loa n
                                                                     only for m a rrie d pe ople
                                                                     or for s ingle s with
                                                                     c hildre n




                Benchmark: Linked to the yield of Hungarian government bonds
                For more details of the subsidy scheme see Decree 12/2001.(I.31.)

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          Hungary’s Leading Mortgage Bank
                                                                                                                                        Appendix


                                    Government Subsidy Scheme

           os
          M t Recent Subs idy Scheme - s ubs idy s cheme for loans granted after 22 December 2003

          Refinancing               Loan Interest                   Loan Conditions     Asset Side Subsidy Liability Side Subsidy    Subsidy Conditions

                                                                   max 15 million HUF
                                                                                                                                    available for the first 20
             CMB          MAX(110 % of benchmark+4%)                 only for new               No            60% of benchmark
                                                                                                                                       years of the loan
                                                                       properties
                                                                   max 5 million HUF
                                                                                                                                    available for the first 20
             CMB          MAX(110 % of benchmark+4%)                 only for used              No            40% of benchmark
                                                                                                                                       years of the loan
                                                                       properties




              Benchmark: Linked to the yield of Hungarian government bonds
              For more details of the subsidy scheme see Decree 12/2001.(I.31.)

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          Hungary’s Leading Mortgage Bank


           Margins on mortgage loans
           Validity                                                  before                after                 after
                                                              16 June 2003         16 June 2003      22 December 2003
           Rate paid by customer                          6% (4+2%) max.        5% (3+2%) max. 8%** (max. GBBY * 1.1 +
                                                                                                      4% - GBBY * 0.6)
           Liability side subsidy                10% (CMB coupon + 2%             9.03% (GBBY *      5.16% (GBBY* 0.6)
                                                        but max. 10%)                     1.05)
           Total bank interest income                             16% max.          14.03% max. 13.46% (max GBBY * 1.1
                                                                                                                +4%)
           GBBY                                                        8,60%              8,60%                 8,60%


           CMB spread over GBBY                                       100 bp.            100 bp.               100 bp.


           Coupon of CMB                                                   8%                8%                    8%


           Funding cost (Yield of CMB)                  9.6% (8.6% + 1%)        9.6% (8.6% + 1%)      9.6% (8.6% + 1%)


           Margin (asset side, CMB                                     6,40%             4,43%                  3,86%
           funded)
           Loan volume at MBank                                 HUF525 bn.           HUF188 bn.              HUF31 bn.
           30 September 2004

           *GBBY = Government Bond Benchmark Yield based on CMB maturity
           ** for new lending varies monthly

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