Results for the 2nd quarter of 2004

In the first six months of 2004 revenues totalled NOK 29.5 billion excluding gains, an increase of 14.7 per cent compared to the first six months of 2003. Operating profit (EBIT) after the first six months of 2004 increased by over NOK 1.9 billion compared to the same period in 2003 and amounted to over NOK 5.0 billion. Profit before taxes and minority interests were over NOK 7.3 billion after the first six months of the year, an increase of nearly NOK 3.8 billion compared to the first six months of last year.

Compared to the second quarter of 2003, the EBITDA margin adjusted for special items increased in the second quarter of 2004, from 34.4 to 36.1 per cent. EBITDA (operating profit before depreciation, amortization and write-downs) increased by NOK 1,331 million to NOK 5,681 million. In the first six months of 2004, EBITDA increased by NOK 2,170 million to NOK 10,697 million compared to the first six months of last year.

Capital expenditure was NOK 4,012 million in the second quarter of this year compared to NOK 1,314 million in the same period last year and includes a mobile license in Pakistan totalling NOK 1.8 billion. Net interest-bearing liabilities at the end of the second quarter this year amounted to NOK 22.0 billion, which was NOK 2.7 billion more than at the end of the first quarter of this year, including payment of dividends and the repurchasing of own shares for a total of NOK 3.0 billion.

In the second quarter of 2004 Telenor Mobil-Norway had 73,000 new customers. In Norway the estimated market share measured in the number of subscriptions was approximately 56 per cent at the end of the second quarter.

In international mobile operations there was solid customer growth during the second quarter. In total the number of mobile subscriptions in Telenor's wholly and partly owned companies was 38.9 million at the end of the second quarter of 2004, which was 4.7 million more than the first quarter. In Mobile, EBITDA increased by NOK 774 million to NOK 3,051 million in the second quarter of 2004 compared to the same period last year. This growth came mainly from international mobile operations.

In Fixed the EBITDA margin was 32.9 per cent, which was in line with the second quarter last year. The estimated market share for fixed line telephony in Norway measured in traffic minutes was 69 per cent, in line with the end of the first quarter.

EBITDA in Broadcast increased by NOK 63 million in the second quarter of 2004 compared to the second quarter of 2003 to NOK 390 million. The EBITDA margin increased from 28.0 to 29.2 per cent during the same period and was mainly related to lower prices on the leasing of satellite capacity.

"We can note a good growth in revenues and a solid improvement in profits and that our international operations are in good progress. It is especially gratifying to be able to observe customer growth and increased usage per customer in the Norwegian mobile market, a market characterised by tough competition and price reductions which are beneficial for the customer," says Jon Fredrik Baksaas, President and CEO. "For the year as a whole, we expect continued positive results compared to the previous year and continued growth in revenues, especially in our international mobile operations, where several markets are experiencing strong customer growth." says Baksaas.

Contact person:

Dag Melgaard, Chief Press Spokesman, tel.: (+47) 67 89 26 71 or (+47) 901 92 000

To editorial offices:

Press and analyst conference

In connection with the quarterly results, a press and analyst conference will be held in the Telenor Expo auditorium at Fornebu, Norway on Friday 23 July at 9:00 AM. Jon Fredrik Baksaas, President and CEO and Torstein Moland, Senior Executive Vice President and Chief Financial Officer, will present the results in more detail.

Note: the presentation will be given in English.

Internet transmission

The press and analyst conference will be streamed over the Internet, both as a live transmission and as a recording after the conference, on www.telenor.com/ir

Conference Call

The press and analyst conference can also be followed by telephone, with the possibility to ask questions immediately following the presentation and question round in the auditorium. Phone in well in advance to: 800 80 119 (from Norway) or +47 23 00 04 00 (from abroad).

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