Telio delivers growth and continued good profitability in the 2nd quarter
- 6,019 new customers*) in 2nd quarter

Telio continues to deliver strong results, thereby confirming their position as a leading European provider of access independent broadband telephone services. Telio increased its customer base by 6,019 net new customers in the second quarter. Revenues in the second quarter ended at NOK 99.4 million.

- With an underlying revenue growth of 6% we have more than compensated for the revenue loss from the introduction of VAT on electronic services from 1 July 2011 which makes us very satisfied. Through increased investments in sales and marketing the company acquired 6,019 net new customers in the quarter compared to 1,695 new customers in the same quarter in 2011. This will contribute to future growth in revenues and profits, says Eirik Lunde, CEO of Telio Holding ASA.

Introduced new services
Telio introduced fixed and mobile broadband services at the beginning of 2012. With these new services in addition to a new MVNO agreement, Telio provides a complete and competitive service offering to both the residential and the business segment. The offering now comprises broadband telephony, fixed broadband, mobile, mobile broadband and web based switchboard. The company sold 1,603 broadband lines in the second quarter.

Good growth in Norway
The focus on the business segment in Norway continues to show promising results and the introduction of broadband services has been a success in the residential market.

Continued growth in international markets
Telio continues to grow also in the markets outside Norway. Especially, the Dutch operation has achieved strong growth and the company now has a customer base of 58,500 subscribers in the Netherlands. Net increase in customers in the Netherlands was 3,606.

Strong financial results
In the 2nd quarter 2012, the Telio Group achieved revenues of NOK 99.4 million compared to NOK 97.2 million in the year-ago quarter. EBITDA was NOK 31.4 million (31.5% EBITDA margin) compared to NOK 33.2 million (34.2 % EBITDA margin) in the same quarter last year. Operating profit ended at NOK 20.9 million compared to NOK 23.5 million in the 2nd quarter of 2011. Revenues and results from the third quarter 2011 and onwards are negatively affected by the introduction of VAT on electronic services from 1 July 2011.

*) Customers defined as product sales, not unique customers

(See separate financial report and market presentation for Q1 2012 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

E-mail: eirik.lunde@telio.no

Download high definition pictures of CEO Eirik Lunde at http://www.telio.no/om_telio/presse/logo_og_bilder .

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