Telenor (Canal Digital) Second Quarter 2008

FORNEBU — In the second quarter of 2008, Telenor’s (Oslo:TEL) pro forma revenues (including Kyivstar) increased by three per cent compared to the second quarter of 2007, reaching NOK 27.2 billion. Underlying revenues increased by seven per cent in the same period. Pro forma EBITDA before other income and expenses was NOK 9.3 billion. Telenor’s mobile operations added six million subscriptions during the second quarter.

BROADCAST

Revenues in the Canal Digital Group increased primarily due to higher revenues from sales of additional services to Cable TV subscribers, hardware sales to DTH and Cable TV subscribers, and resale of parts of the UEFA EURO 2008 distribution rights.

Revenues and EBITDA in Transmission & Encryption increased due to higher revenues from digital terrestrial TV (DTT) transmission and increased sales of conditional access cards. The analogue transmission network shut off in Norway was carried out in the first region in March 2008, and is expected to be completed in November 2009.

In the second quarter of 2008, the transfer of traffic from the satellite Thor 2 to Thor 5, which was launched in the first quarter of 2008, was completed.

Number of subscriptions

Summary:

                      Change           Total        Total
                    2nd quarter    1st half year     Year
                    -----------    -------------    -----
                    2008   2007     2008    2007     2007
                    ----   ----    -----   -----    -----
DTH TV               (3)   (16)    1,121   1,126    1,131
Cable TV             24     (3)      734     697      705

Breakdown by quarter:

                                     2006                        2007                2008
                        --------------------------  --------------------------  ------------   
(in thousands)             Q1     Q2     Q3     Q4     Q1     Q2     Q3     Q4     Q1     Q2
                        -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
DTH (satellite)         1,134  1,134  1,136  1,152  1,142  1,126  1,128  1,131  1,124  1,121     
Cable TV                  684    687    691    696    700    697    701    705    710    734     
- of which in Norway      411    412    414    419    423    424    427    431    442    466     
- of which in Sweden      243    245    246    246    246    242    242    242    235    235     
- of which in Denmark      30     30     31     31     31     31     32     32     33     33

More: Earnings Release