Hafslund has entered an agreement with Priority Telecom N.V. to acquire 100% of the shares in Priority Telecom Norway AS. Hafslund today owns, through Hafslund Tokom, more than 890 kilometer of broadband in the region of Oslo. The acquisition of Priority Telecom Norway represents a good platform for Hafslund's strategy to further expand within broadband.

 

The acquisition of Priority Telecom Norway positions Hafslund among the five largest broadband suppliers, with a network of broadband in the country's most densely populated areas, with a particular strong position in the Oslofjord region.

 

Priority Telecom Norway has ownership and access to 800 kilometer of owned and rented broadband in Oslo, Østfold, Vestfold and Buskerud together with deliveries to more than 1,000 corporate customers. The company provides broadband capacity, IP telephony and operating services to corporate customers. Priority Telecom Norway generated operating revenues of NOK 188 million with an EBITDA of 9.1 million in 2005.

 

In relation to Hafslund's acquisition of Priority Telecom Norway AS, the engagement of Anders Eriksson as CEO is concluded and Roger Flølo will take up the position as CEO of the company. Eriksson will however assist the company in a transition period to secure continuity.

 

Hafslund Tokom is a supplier of 890 kilometer of modern fiberoptic network primarily to broadband operators, municipalities and corporations in Eastern Norway. The company also delivers operating services for remote reading and control of energy usage. The company has about 100 corporate customers and 3,000 private customers, and generated in 2005 a revenue of NOK 79 million with an EBITDA of NOK 24 million.

 

Hafslund ASA

 

Oslo, 12 June 2006

 

 

For further information:

 

CEO Hafslund Tokom AS, Roger Flølo, +47 99 73 78 00

Vice President Investor Relations, Heidi Ulmo, +47 90 91 93 25