NOVEMBER 10, 2006 - Conax AS, a leading supplier of conditional access technology for digital TV, has signed a contract with Lithuanian TEO LT AB, where Conax will deliver conditional access for TEO’s, GALA TV IPTV services.

TEO holds a leading position on Internet, data communication and fixed-line telephony in Lithuania. They launched their digital television (IPTV) service, GALA TV, last month, using the conditional access system Conax CAS7. The GALA television will cover almost the total territory of Lithuania and TEO will reach their subscribers’ homes by their voice telephony and Internet service lines. The Internet based digital television service ensures the users the highest video and audio quality, as well as TV content management possibilities.

“TEO has quickly managed to develop into one of the most modern telecommunications companies in Europe, and Conax is pleased to deliver conditional access to this supplier of IPTV services. Their vision to be the leading communication service partner in Lithuania shows tough ambitions which are necessary in a fast developing market,” says Geir Bjørndal, COO and VP, Sales & Marketing, Conax AS.

TEO strategically develops two types of digital TV; terrestrial (DVB-T) and Internet (IPTV). The combination of these technologies offers the user the optimum possibilities: interactivity, territory coverage and service reliability.

“We forecast that by the end of 2007, the number of GALA TV users will reach 40 000. We needed a strong and proven conditional access technology that could be flexible in growth and easily adaptable to new technology”, says Nerijus Ivanauskas, Director of Marketing Department of TEO. “After evaluating several brands in the market, Conax’s solution was found to be the most secure and future proof for providing our services.”

About TEO LT AB

TEO is the most experienced company in the telecommunications business in Lithuania, offering a particularly wide variety of services to residents and business – from telephone calls to integrated voice, data, Internet and IT solutions. The Company focuses on high quality services and a total customer satisfaction.

TEO LT AB shares are traded on the Vilnius and London stock exchanges. TEO Group’s consolidated revenue for the year 2005 was LTL 733 million and consolidated net profit – LTL 84 million. At the end of 2005, the total number of employees in TEO Group was 3005. 60 per cent of the company’s shares are indirectly owned by TeliaSonera, one of the largest telecommunications corporations in the Nordic and Baltic countries.

About Conax AS

Conax is a leading supplier of state-of-the-art conditional access solutions for digital TV, offering content protection for broadcast via all kind of networks.

As a pioneer in the field of conditional access, Conax is a globally oriented player, with a solid base of clients in more than 60 countries. The headquarters are in Oslo, Norway. Conax has subsidiaries in USA and India and Germany and sales & support offices in Russia, Singapore, China, South Korea, Brazil and Canada. Conax is ISO 9001 and BS7799 certified.

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For further information, please contact:

Geir Bjørndal, COO and VP, Sales & Marketing, Conax AS, Tel: + 47 22 40 52 00, E-mail:
[email protected]

Rosvaldas Gorbaciovas, Press Officer, TEO Lt AB, Tel: +370 5 236 75 37/+370 687 3 33 44