Telio Holding ASA is steadily strengthening its presence in the European market for broadband telephony and the Group acquired 10,533 net new customers in the second quarter. This represents a growth in customer base of seven percent. As of 30 June 2010, Telio Group has 155,000 VoiP customers.

- In the second quarter we had the highest customer growth since fourth quarter 2006 driven by a positive development in Switzerland and the Netherlands. We are quite satisfied with this and it demonstrates the scalability of our business model. Telio has a highly competitive technology and platform giving us unique possibilities to launch services in new markets. This makes us optimistic about the future, says CEO Eirik Lunde.

Telio started up in the Swiss end user market in January 2010 and after a slow start during Q1 the customer intake in Switzerland has been picking up during Q2. In the Netherlands Telio added a new wholesale partner and is well positioned for further growth. From the start of 2010, Telio has grown the business in the Netherlands with 12,495 net new customers, to at total numbers of 34,000 customers.

- White label operations differ somewhat from the way we approach the markets in Norway, Denmark and Switzerland with our own brand, but this business model has proven to be very fruitful. Our partners in the Netherlands are proving that we can achieve strong growth, even in a crowded market like the Dutch, says Telio’s CEO Eirik Lunde.

Telio will present its financial results for Q2 2010 on 19 August 2010.

For further information, please contact:

Eirik Lunde, CEO Telio Holding ASA, +47 4809 6964, eirik.lunde@telio.no