TEO LT, AB - Notification on material event

TEO will continue its rapid investments into fiber-optic network

TEO LT, AB, the largest provider of integrated telecommunication, IT and TV
services in Lithuania, will by the end of 2012 invest more than LTL 15 million
in the next-generation fiber-optic access in business centres and office
buildings. The investment will make TEO leading-edge Internet technologies
available to almost 80 per cent of the country's businesses and organizations,
which have their offices in office buildings. 

Fiber-optic access allows businesses to use much faster Internet services, and
to more efficiently interconnect workplaces located in different parts of the
city, the country or the world. In addition, the next-generation Internet
access allows cost saving through the use of the possibilities offered by Cloud
Computing. 

The Cloud Computing services, which are being deployed by TEO Group, allow the
software installed on servers to be used by multiple workstations
simultaneously. Fiber-optic access can ensure the same software operating speed
as if it were on the same computer. 

It is planned that by the end of 2012, TEO fiber-optic access will be installed
in more than one thousand buildings hosting different organizations. This year,
the fiber-optic network is most actively developed in Vilnius, Kaunas and
Šiauliai. In these cities alone, by the end of December, TEO fiber-optic access
will be installed in more than 200 office buildings. 

In 2011, the overall investments of TEO in the FTTH network, which is being
expanded in fifty cities of Lithuania, will reach more than LTL 70 million,
while the total amount of investments planned by the Company next year will be
over LTL 150 million. 

According to the data released by the FTTH Council Europe in October, Lithuania
is the country which deploys next-generation Internet access technologies at
the fastest rate in Europe. Fiber-optic Internet access is used by
approximately 21 per cent households in the country. According to the research
data, Lithuania is about two times ahead of Sweden, Norway and Slovenia. 

FTTH Internet services provided by TEO, the company which has developed the
most extensive telecommunications network in Lithuania, will by the end of this
year become available for use to about half of the country's population. At the
end of September, the next-generation network services were used by more than
93 thousand customers of TEO, and it is forecasted that by the end of the year
there will be more than 100 thousand. 


Darius Džiaugys, 
Head of Information Sector, 
tel. +370 5 236 7878