TEO LT, AB - Notification on material event

In 2010 TEO invests into development of the fiber-optic network

TEO LT, AB, the largest provider of integrated telecommunication, IT and TV
services in Lithuania, will this year invest about LTL 96 million in deployment
of its next-generation fiber-optic network. The Company's investments will
already this year enable the availability of FTTH Internet services to
approximately half of the country's population. 

The total investments of TEO in the FTTH network, which has been expanded in
fifty cities of Lithuania for three years, will at the end of this year amount
to about LTL 255 million. 

According to Giedrius Vegys, Chief Financial Officer of TEO, successful
performance of TEO and the telecommunications market starting to show signs of
recovery will allow the Company to increase investments in deployment of its
next-generation network, and this year the Company will allocate for that
purpose 75 per cent more funds than in 2009. 

In 2010 total investments of TEO into the development of the network,
information systems and other activity will amount to LTL 178 million. 

By the end of December, the FTTH (Fiber to the Home) network, which is
installed up to the user's computer, will be available for use to about half of
the country's population - 570 thousand households. The next-generation network
is being developed at the fastest rate in the country's biggest cities - by the
end of 2010 it will be available to approximately 88 percent residents of
Vilnius, 95 per cent residents of Klaipėda, 75 percent residents of Kaunas,
more than half of Panevėžys and Šiauliai residents. 

At the end of June, the next-generation network services were used by more than
84 thousand customers, and it is forecasted that by the end of this year there
will be more than 100 thousand. 

According to the data released by the FTTH Council Europe at the end of
February, Lithuania is the country, which is implementing next-generation
fiber-optic Internet technologies at the fastest rate in Europe. Only in South
Korea, Japan, Hong Kong and Taiwan FTTH networks are being developed faster
than in Lithuania. 

The next-generation fiber-optic network is characterised by the potential to
transmit data at very high speeds. At present, the speed of the Internet
services currently provided by TEO to its customers is 200 Mbps (Megabytes per
second). In the future, the Company's fiber-optic access will enable providing
services at the speed of several Gigabytes per second. The FTTH network will
provide users with the possibility to enjoy the extremely high quality of
different services through a single access point: to make telephone calls,
watch digital TV, browse the Internet and send video records simultaneously. 


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