Telio Holding ASA (OSL:TELIO) Telio Continues To Deliver Good Results

Telio Holding ASA (OSL:TELIO) (Oslo, Norway, 28 October 2008) Telio continues to deliver good results and confirming their position as a leading European provider of access independent broadband telephone services. Revenues in the third quarter were NOK 93 million. Operating profit was NOK 14.2 million, an increase of 660 per cent compared to the year-ago quarter (NOK 1.9 million).

- Revenues and results for the third quarter are satisfactory, especially taking into account the seasonality with summer holidays making this a weaker quarter. In addition, termination prices were reduced by regulators with effect from 1 July. We have also experienced a good increase in number of new customers in this quarter, says Eirik Lunde, the CEO of Telio Holding ASA.

Confirming a strong market position Telio is the largest player in the market for broadband telephone services measured in traffic/minutes. According to the latest report from the Norwegian Post and Telecommunications Authority, Telio is handling close to 50 per cent of the non-business broadband telephone traffic. Telio is also the only big player that continues to increase its share of traffic in the total market for fixed telephone services. Further, Telio's customers are responsible for 54 per cent of all traffic between non-business fixed telephone in Norway to fixed and mobile telephone abroad. *)

- The figures from the Norwegian Post and Telecommunications Authority show clearly that Telio is confirming its strong position in the Norwegian broadband telephone market. It shows that we have a strong message that our customers understand, and that they are using our services. We have a highly recognized technology that consistently provides high quality telephone services at a reasonable price. The fact that our customers are using our services as much as they do shows that we are on the right track, says Eirik Lunde.

Success in the business market Telio has built a successful distribution model for direct sales to the business market, based on products for this market that was released towards the end of 2007. The company now has more than 4,000 active phone lines in this market in Norway and expects the positive development to continue. During third quarter, this distribution model was introduced also in Denmark and the company expects to see effects from this in fourth quarter.

Telio signs wholesale agreement with Pretium Telecom BV in the Netherlands Telio Netherlands BV, a wholly owned subsidiary of Telio Holding ASA, has 27 October 2008 signed a wholesale agreement with the Dutch telecom provider Pretium Telecom BV. Pretium Telecom is one of the largest consumer PSTN resellers in the Dutch market and currently provides more than 200,000 residential customers with traditional fixed telephony services. Pretium Telecom is now planning to expand its market by providing VoIP services. See separate press release for more information.

Strong financial results For the third quarter the Telio Group reached revenues of NOK 93 million compared to NOK 89.2 million in the year-ago quarter. EBITDA was NOK 24.6 million (26 per cent EBITDA margin) compared to NOK 14.8 million in the year-ago quarter. Operating profit was NOK 14.2 million compared to NOK 1.9 million in the year-ago quarter.

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.



LINK: http://hugin.info/136135/R/1263814/277589.pdf

Telio Holding ASA

http://www.telio.no

ISIN: NO0010199052

Stock Identifier: XOSL.TELIO