- More than 7.000 new customers in Q3

(Oslo, Nov. 8th 2007) Telio, a leading European provider of broadband telephone service, continues to deliver profitable growth. Revenue for the third quarter reached NOK 89,2 million, a 17 per cent increase compared to the same quarter last year. The net operating income was NOK 1,9 million.

– Following a second quarter characterized by consolidation of subscribers in Norway, it is comfortable to note that we again managed to increase the number of subscribers in Norway. We continued a profitable, controlled growth during the third quarter, says Eirik Lunde, the CEO of Telio Holding ASA.

At the end of the third quarter Telio had 140.800 subscribers, a net increase of 7000 compared to the second quarter. Norway experienced a solid net growth of subscribers of 4.400. Denmark grew by 19 per cent to 23.000 subscribers (including 13.100 Musimi customers) and the Netherlands grew by 10 per cent to 10.500 subscribers.

– A solid product offering and continued focus on customer service gives us plenty of new subscribers. At the same time we experience existing subscribers as more loyal, says Lunde. – It is also nice to notice that the Telio-subscribers are the most active and make the most phone calls, and thereby save more money by using broadband telephone.

Lunde is referring to figures released in the latest report from the Norwegian Post and Telecommunication Authority, which shows Telio’s broadband telephone subscribers as being the most active, by far, during the first 6 months of 2007. The company had the largest market share of the number of calls/minutes (46,5 per cent) – more than twice the size of the nearest competitor, at (19,8 per cent).

Telio launched their broadband telephone service for business towards the latter part of the third quarter. This was too late in the quarter to have any effect on the numbers for the quarter. However, the launch has been well received by the market, and the company has great expectations for the further development of the business market. The company analysed this marked thoroughly and see it as a large and untouched market with a great growth potential.

For the third quarter the Telio Group posted revenue of NOK 89,2 million, compared to NOK 76,1 million for the same period last year. EBITDA was NOK 14,8 million (17 per cent margin) compared to NOK 12,5 million for the third quarter last year (16 per cent margin).

For more information, please contact:

Mr. Eirik Lunde, CEO
Telephone: +47 23 62 66 88 / +47 48 09 69 64
E-mail: eirik.lunde@telio.no
Web: www.telio.no


Download high definition pictures of CEO Eirik Lunde at http://www.telio.ch/om_telio/presse