Results for the second quarter 2005 - still significant growth

"In addition to strong customer and revenue growth, it is worth noting that the market shares of all our mobile operations have increased or remained stable. Kyivstar in Ukraine has improved its ARPU compared to the first quarter this year, and we are also seeing significant improvements in Sonofon in Denmark," said CEO Jon Fredrik Baksaas.

EBITDA, before other income and expenses, was NOK 5,564 million in the second quarter of 2005, compared to NOK 5,529 million in the second quarter of 2004. The correspondingly adjusted EBITDA margin was 33.6 per cent, compared to 36.3 per cent in the second quarter last year. The reduced margin is mainly due to higher costs associated with the launch of Telenor Pakistan, the developments in Fixed, as well as significant growth and increased competition in the mobile markets.

Capital expenditure amounted to NOK 2,923 million in the second quarter of 2005, compared to NOK 4,012 million in the second quarter of 2004. Adjusted for the acquisition of the mobile licence in Pakistan in the second quarter of 2004, capital expenditure increased as a result of high customer growth in the international mobile operations. Net interest-bearing debt was NOK 17.8 billion, an increase of NOK 1.9 billion from the first quarter of 2005. In the second quarter Telenor purchased 6.4 million of its own shares in the market for NOK 329 million.

Mobile operations

The number of mobile subscriptions in Telenor's consolidated operations increased by a record-high 3.4 million in the second quarter, reaching a total of 24.8 million. The total number of mobile subscriptions in companies in which Telenor has ownership interests increased by 7 million in the second quarter, reaching 67.1 million. The number of mobile subscriptions in Norway increased by 52,000 in the second quarter. Telenor's estimated market share in Norway, measured in numbers of mobile subscriptions, was 56 per cent at the end of the second quarter, approximately the same as at the end of the first quarter of 2005.

Sonofon in Denmark strengthened its customer base, ARPU, revenues and EBITDA in the second quarter of 2005, compared to the second quarter last year. The subscription growth in the other international mobile operations continued to be significant in the second quarter, particularly at Kyivstar in Ukraine, GrameenPhone in Bangladesh and DiGi.Com in Malaysia, with 1.7 million, 776,000 and 304,000 new subscriptions respectively. At the end of the second quarter of 2005, Telenor Pakistan had 836,000 subscriptions and an estimated market share of seven per cent. At the same time, Telenor was the third largest mobile operator in Pakistan, after only three and a half months of operations.

Fixed

Revenues in Fixed decreased by 2.5 per cent in the second quarter of 2005, compared to the second quarter of 2004. In Norway, reduced revenues from telephony and data services were only partially offset by the growth in ADSL/Internet, wholesale and other revenues. Due to the revenue developments in the Norwegian fixed-line operation, Telenor will continue its intensified efforts to achieve cost reductions and improvements in all parts of the operation. The goal is to reduce the cost base in Fixed by NOK 1.5 billion, with full effect from 2007, compared to 2004. Bredbandsbolaget in Sweden and Cybercity in Denmark will be consolidated into the Fixed operations with effect from the third quarter of 2005.

During the second quarter of 2005, the number of ADSL subscriptions (residential and business) in Norway increased by 30,000, reaching a total of 415,000. Telenor's estimated market share for ADSL was 60 per cent at the end of the second quarter, the same as at the end of the first quarter of 2005. Telenor's estimated market share for fixed-line traffic, measured in traffic minutes, was 67 per cent at the end of the second quarter, the same as at the end of the first quarter of 2005.

Broadcast

Revenues from Broadcast increased by 5 per cent in the second quarter of 2005 compared to the second quarter of 2004, reaching NOK 1,401 million. At the end of the second quarter this year, Broadcast had 853,000 DTH pay-TV subscribers, 619,000 cable TV subscribers and 50,000 cable TV Internet accesses.

Contacts:

Chief Press Spokesman Dag Melgaard, Tel: +47 67 89 26 71 or +47 901 92 000

Head of Information Scott Engebrigtsen, Tel: +47 90 04 34 84

To the editorial offices:

Press and analysts conference

In connection with the presentation of Telenor's quarterly results, a press and analysts conference will be held on Friday 22 July at 09:00 CET in Auditorium A, Telenor Expo Visitor Centre, at the Group headquarters at Fornebu. CEO Jon Fredrik Baksaas and Senior Executive Vice President and CFO Torstein Moland will present the results for the second quarter. The presentation will be given in English.

Internet and mobile broadcast

The press and analysts conference will be broadcast live over the Internet, and will also be available as a recording after the conference on www.telenor.com/ir. The live service also allows for written questions to be submitted. The conference will also be available live, or as a recording, on mobile phones that support 3G, GPRS or EDGE. For more details please visit our website.

Conference call and Q&A

Those unable to attend the press and analysts conference are invited to call in and listen over the phone. This service also allows users to ask questions directly after the presentation and the Q&A session in the auditorium. Please phone in well in advance on (+47) 800 80 119 (from Norway) or (+47) 23 00 04 00 (from Norway or abroad).

Reports and presentations

The full quarterly report and presentations used at the press and analysts conference will be made available on www.telenor.com/ir.