€The decision made by Telia/Telenor€s Board of Directors is correct from both a business and legal point of view

"The decision made by Telia/Telenor's Board of Directors is correct from both a business and legal point of view. The claim that the board has not made a valid decision about the locations of the headquarters for our business areas is wrong." The above statement was made by Jan-Åke Kark, Telia/Telenor's Chairman, in response to CEO Tormod Hermansen's comments that the board's decision was invalid. The board's decision differs only on one point, compared with the proposal made earlier by Telia/Telenor's Group Executive Management. The successful business area for network services - Networks/International Carriers - has switched locations with Mobile Communications, which will have its domicile in Kista, a suburb of Stockholm. "This is an ingenious way to spread competence within the Group and management also supports the idea of moving Networks/International Carriers to Norway," said Jan-Åke Kark. He feels that there is a reason to further emphasize the business advantages to locating the headquarters for Mobile Communications in Stockholm: "Kista is a world-leading competence center for the development of mobile telephony. The Swedish and Norwegian managements for mobile communications are both skilled and have both been successful. Now we are combining the success factors from both to achieve our goal with the merger. "Fornebu, outside Oslo, represents an interesting vision of a future IT center, but for a company that will soon be listed on the stock exchange, this investment is far too risky in relation to an established center like Kista. "Furthermore, 20 of Sweden's professors in the telecommunications field specialize in radio communications, and Kista, with 600 technology companies, is ranked number five in the world in terms of IT penetration." "It is easier to move the Norwegian management than all of Kista's resources," continued Jan-Åke Kark, who added that the cooperation between Ericsson and Microsoft in the future area of wireless Internet solutions proves that Kista holds a world-leading position in this field. Jan-Åke Kark also pointed out that, in addition to deciding about the headquarters locations of the various business areas, a number of other important decisions were made at the board meeting which concern Telia/Telenor's business and future orientation. Among other decisions, the board approved the time schedule and general plans for the stock exchange introduction that is planned for next spring. "The company must act like a listed company already today and make all of its decisions on the basis of commercial considerations," ended Jan-Åke Kark. For further information contact: Jan-Åke Kark, Chairman of Telia/Telenor, phone +46 8 713 62 20. Telia/Telenor Press Release Chairman of the Board December 10, 1999 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/10/19991210BIT00490/bit0001.pdf http://www.bit.se/bitonline/1999/12/10/19991210BIT00490/bit0002.doc