Strong opening of a new year for Telio

- Operating profit of NOK 22.7 million in 1st quarter 2010 Telio continues to deliver strong results, thereby confirming their position as a leading European provider of access independent broadband telephone services. Revenues in the first quarter ended at NOK 95.8 million, compared to NOK 99.1 million in the same period last year. Revenues in Q1 09 included one-time implementation fee in the Netherlands (NOK 1.3 million) and revenues in Q1 10 are negatively affected by currency fluctuations (NOK 1.7 million) and price reductions introduced from 1 February (NOK 1 million). Operating profit was NOK 22.7 million, up from NOK 19.5 million in the year-ago quarter.

– An operating profit of NOK 22.7 million represents a strong opening of the year 2010 for Telio. With a high underlying profitability as a basis we are now focused on new growth initiatives, especially with the operation and first phase distribution established in Switzerland during the first quarter, says Eirik Lunde, CEO of Telio Holding ASA. Reducing prices in Norway In Norway, Telio reduced prices to international destinations significantly from 1 February. The company expects to see increased volume, more customers and increased customer loyalty from these price reductions. Continued growth in international markets Telio continues to grow in the markets outside Norway. Especially, the Dutch operation achieved a strong growth in customer intake during Q1. The customer base increased by 93% compared to Q1 2009. The growth in Denmark continues and with new interconnect agreements the company achieves reduced costs and increased termination revenues resulting in higher gross margin in Denmark. The company launched its services to the Swiss market in January and full operation and first phase distribution has been established during the first quarter. Awarded Cisco Small Business Partner of the Year 2009 Telio was awarded Cisco Small Business Partner of the Year 2009. Telio’s solution for small businesses is regarded as very innovative, scalable with an early presence in the market. The solution will also open up new distribution channels through IT/Telecom dealers and installation companies. Strong financial results In the 1st quarter, the Telio Group achieved revenues of NOK 95.8 million compared to NOK 99.1 million in the year-ago quarter. EBITDA was NOK 33.2 million (35% EBITDA margin) compared to NOK 29.9 million (30 % EBITDA margin) in the same quarter last year. Operating profit ended at NOK 22.7 million compared to NOK 19.5 million in the 1st quarter of 2009. (See separate financial report and market presentation for Q1 2010 at http://www.telioholding.no/investor_relations/reports_presentations) For further information, please contact: Mr. Eirik Lunde, CEO Telephone: +47 23 62 66 88. Mobile: +47 48 09 69 64 Mail: eirik.lunde@telio.no Download high definition pictures of CEO Eirik Lunde at http://www.telio.ch/om_telio/presse