TEO LT, AB - Notification on material event

Teo has agreed on a loan for the acquisition of shares in Omnitel

IT and telecommunications company Teo has signed a loan agreement with SEB Bank
and Danske Bank for EUR 150 million long-term loan intended for the acquisition
of shares in Omnitel from TeliaSonera. The deal represents one of the largest
financing transactions in Lithuania this year. 

Teo and Omnitel, both being parts of TeliaSonera Group, are joining their
forces in Lithuania and already from next year will offer new joint broadband
and mobile communication, Internet, television and IT services. In early
October, it was announced that Teo would acquire a 100 per cent stake in
Omnitel from its current shareholder TeliaSonera. The total value of the deal
amounts to EUR 220 million on a cash and debt free basis. 

Teo borrows EUR 150 million in equal instalments of EUR 75 million from SEB
Bank and Danske Bank. The financing deal was arranged by SEB Bank. Acquisition
of Omnitel is scheduled to be completed early next year, though the exact date
is not yet fixed. 

"The successful attraction of external financing further strengthens the
currently ongoing intensive process of business integration. We have formed a
new management team, updated the structures of our units and are preparing for
the smooth start of our new business", – Kęstutis Šliužas, CEO of Teo, says. 

"The step of Teo to acquire Omnitel is logical and based on global trends,
which open up many new opportunities. Therefore, we decided to organize and
finance the deal", – Aivaras Čičelis, Deputy President and Head of Corporate
Banking Division of SEB Bank, says. 

"We are glad being able to contribute to the implementation of one of the
biggest acquisition deals and hope that the financing granted by Danske Bank
will help ensure that the process of business integration runs smoothly", –
Dinas Petrikas, Head of Corporate Banking Division at Danske Bank, says. 

As a result of this deal, the structure of the shareholders of Teo will remain
unchanged. Swedish telecommunications company TeliaSonera will continue to own
88.15 per cent of shares, while other shareholders – 11.85 per cent stake in
Teo and, indirectly, in Omnitel. 




         Darius Džiaugys,
         Head of Investor Relations,
         tel. +370 5 236 7878