- Operating profit reached NOK 12 million in the first quarter

(Oslo, Norway, April 29th 2008) Telio today announced record first quarter 2008 results, and again confirm their position as a leading European provider of broadband telephone service. Revenues reached NOK 94.3 million, a 7 per cent increase compared to the year-ago quarter. Operating profit was NOK 12 million, an increase of 193 per cent compared to the year-ago quarter (NOK 4.1 million).

- The financial results for the first quarter 2008 are the best ever. We delivered the same message for the fourth quarter 2007, but this time we more than doubled the operating profit compared to the fourth quarter. That is very satisfying, says Eirik Lunde, the CEO of Telio Holding ASA.

The company kept revenues at the same level as in the fourth quarter despite a reduction in termination prices that came into effect on January 1st, 2008. In addition, the Easter holiday was in March this year, and regular phone usage usually drops during this holiday week.

High customer satisfaction
At the end of the first quarter Telio had 148,900 subscribers, a net increase of 4,400 since the beginning of the year. The company shows healthy growth in both Denmark and the Netherlands, with increases of 76 per cent and 38 per cent respectively compared to the year-ago quarter.

- It is very satisfying to see that our deliberate emphasis on a low and predictable price, combined with the use of a world leading technological platform, has helped us score better than our competitors in surveys looking at customer satisfaction and call quality*. We manage to hold on to existing subscribers while experiencing a continuous flow of new ones.

With focus on the business market
Towards the end of 2007 Telio launched an SMB product to get a foothold in the business market, and the company is already experiencing a good development in this segment. The distribution channels have been strengthened, and the product has already been well received by the customers.

Strong financial results
For the first quarter the Telio Group reached revenues of NOK 94.3 million compared to NOK 88.4 million in the year-ago quarter. EBITDA was NOK 22.7 million (24 per cent EBITDA margin) compared to NOK 15.5 million in the year-ago quarter. Operating profit was NOK 12 million compared to NOK 4.1 million in the year-ago quarter.

For further information please contact:
Mr. Eirik Lunde, CEO
Telephone:+47 23 62 66 88.
Mobile: +47 48 09 69 64
E-mail:eirik.lunde@telio.no

* Surveys done by the Norwegian Post and Telecommunication Authority during the last two years.