Telenor acquires Bredbandsbolaget and Cybercity

Telenor will benefit from synergies when utilizing the backbone network capacities in each country. Future cost savings between the acquired companies and existing Telenor operations in Sweden (Telenor AB) and Denmark (SONOFON AS) adds up to NOK 2.5 billion (net present value).

Bredbandsbolaget is the second largest provider of broadband services in Sweden with 335,000 customers, representing a 24 per cent market share. Operating an all-IP fiber and DSL network, Bredbandsbolaget is synonymous with high-speed broadband. The company launched Voice-over-IP in 2003, and serves 80,000 voice customers today. Bredbandsbolaget recently launched IP-TV services, thus offering full triple-play. The purchase price for Bredbandsbolaget (including debt) is SEK 6,033 million.

Cybercity has consistently improved its position as the third largest Danish supplier of broadband services. Cybercity has 90,000 customers and 8 per cent market share. Covering 70 per cent of Denmark with its own DSL infrastructure, the company focuses on the high-end residential, home office and SME segments. Cybercity is known for its high quality solutions and excellent customer service. The purchase price for Cybercity is DKK 1,385 million in cash on a debt-free basis.

Commenting on the transactions, Morten Karlsen Sørby, Executive Vice President in Telenor, said:

"Bredbandsbolaget and Cybercity are both well-run companies, and they improve Telenor's offering to both business and residential customers in the Nordic region. The companies add scale and offer substantial synergy to our Nordic operations. Broadband is an important distribution channel for future voice and content services, and we are well positioned for the high broadband growth in the Nordic region."

Bredbandsbolaget and Cybercity will continue to operate under their current brands. Both acquisitions are expected to be completed during June 2005, subject to approval from the Swedish and Danish competition authorities, respectively.

For more information, please contact:

Scott Engebrigtsen, head of information, Telenor ASA, phone +47 90 04 34 84, scott.engebrigtsen@telenor.com

To the editorial offices:

Press and analyst conference

In connection with the acquisitions of Bredbandsbolaget and Cybercity, a press and analyst conference will be held on Monday 23. May at 09:00 CET at Auditorium A in the Telenor Expo Visitors' Centre at Fornebu. The presentation will be given in English.

Internet streaming

The press and analyst conference will be streamed over the Internet, both live and in a recorded version after the conference on www.telenor.com/ir. For more information, please refer to the Telenor website.

Conference call and Q&A session

You may also call in and listen to the presentation on the phone. This service also allows you to ask questions at the Q&A session at the end of the presentation. To participate in the Conference Call, please register well before the conference starts by calling (+47) 800 80 119 (from Norway) or (+47) 23 00 04 00 (from Norway or abroad).

Materials

The presentation used at the press and analyst conference will be made available at www.telenor.com/ir.