TEO LT, AB - Notification on material event

Teo is updating its brand and customer care showrooms

Information and Communication Technology company Teo is updating its brand and
opening its first customer care showroom of a new concept in Kaunas on Friday.
These changes reflect the company's values and customers' expectations to use
modern technologies in a simple, clear and flexible way. 

Light, open and simple - such is the new logo of Teo which will gradually
replace the brand of Teo that was created eight years ago. After having done
away with the framing and additional graphic elements, the logo has become
freer and lighter. 

Along with the visual renewal, Teo is changing the concept of customer care
showrooms. In Scandinavian-style decorated and cozy home-like spaces, visitors
can try out the latest household appliances, consult directly with Teo staff
and while sitting on a couch, just like at home, get hands-on experience with
Teo smart TV. 

The first new concept showroom will be officially opened on Friday at the
Kaunas Akropolis. This year it is planned that more than 10 showrooms will be
updated or opened in new places. The company has planned to invest EUR 1
million in the updating and opening of new showrooms during the next couple of
years. "Teo is changing along with its customers' needs and expectations, and the new
logo reflects the company's chosen direction. We strive to always be close to
our customers and to develop solutions relevant to their needs, allowing easy
management of integrated modern technologies and entertainment in their homes",
- Kęstutis Šliužas, General Manager of Teo, said. "A record growth in the
number of new customers and improving customer satisfaction indicators mean
that we are going in the right direction". 

Kęstutis Šliužas, General Manager of Teo, points out that the growth in the
company's revenue and EBITDA that was recorded in the fourth quarter of 2014
for the first time in two years is a result of the implementation of
significant changes that allowed turning Teo financial direction in a positive
way. 

In spite of the fact that the telecommunications and pay-TV market in Lithuania
continued to shrink last year, the number of Teo customers grew. Last year, the
number of customers using Teo fiber-optic Internet access increased by 11 per
cent and exceeded 200 thousand. After the company offered a more convenient
menu of Teo Smart TV and additional services, last year the number of IPTV
customers increased by almost a quarter - up to 130 thousand. Teo already has a
total of more than half a million of Internet users and 186 thousand of
television service users. 

In the short term, Teo intends to offer even more possibilities for managing
smart TV content, improve Internet TV "Interneto.tv" and expand the range of
products available on its e-shop. More integrated smart home management will
combine not only a TV set, a computer, but also other household appliances. 

Last year, Teo invested LTL 103 million, the majority of which went to the
development of the next-generation fiber-optic access network and of the core
network. 




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