Exercise of Viag option

Telenor today gave British Telecommunications plc (BT) notice of the exercise of its put-option related to its 10% stake in VIAG Interkom GmbH & Co (VIAG Interkom). The transaction is expected to be completed during January 2001. The transaction will involve a total payment Telenor of more than NOK 20 billion (based on todays exchange rates) which will mainly go towards downpayment of loans. This represents a payment of approximately NOK 13 billion for Telenors stake and a payment of approximately NOK 7 billion in respect of the repayment of loans which have been advanced by Telenor to VIAG Interkom. The disposal will give Telenor a pre tax profit of more than NOK 10 billion