Update on the wholesale business in the Netherlands

Telio has received information from its largest distributor in the Netherlands, KPN, that the company intends to migrate its wholesale customers to a platform within the KPN Group. This implies a termination of the contract between Telio and KPN and migration of the customers is planned to start during August 2014 and to be completed in Q1/Q2 in 2015. This constitutes a major part of Telio’s customer base in the Netherlands (currently approximately 74,000 customers, i.e. approximately 90% of total customer base in the Netherlands). This will impact the guided financial targets for Telio Group. The guided EBITDA target for 2014 is not expected to be significantly affected, while the guided EBITDA target for 2015 is expected to be reduced by approximately NOK 12 million. This takes into account the current wholesale customers and estimated contribution from the previously announced contract with M7 in the Netherlands.