Announcement on prepayment and cancellation of syndicated loans

Tiszaújváros, December 29, 2004

Tiszai Vegyi Kombinát Részvénytársaság (TVK Rt.) hereby informs its shareholders and capital market participants, that the Company prepaid and cancelled the EUR 280 million syndicated loans, contracted on February 27, 2002. TVK Rt. refinanced the prepayment of the loans from the EUR 280 million credit agreement, signed on December 22, 2004 with Magyar Olaj- és Gázipari Részvénytársaság.

Árpád Olvasó
CEO