TEO LT, AB - Notification on material event

The number of TEO fiber-optic Internet users has exceeded 100 thousand

During the last year, the number of customers using the fiber-optic Internet
access services provided by TEO LT, AB, the largest provider of integrated
telecommunication, IT and TV services in Lithuania, increased by approximately
65 per cent and at the end of December exceeded 100 thousand. 

According to Darius Didžgalvis, Chief Technology Officer and Deputy General
Manager of TEO, the fast growth in the number of fiber-optic/FTTH Internet
users is due to the possibilities provided by this technology and the rapid
development of the next-generation network. "The FTTH network provides
opportunities not only to browse the Internet at ultra-fast speeds, but also to
watch HDTV or make telephone calls simultaneously", - D. Didžgalvis said. 

FTTH Internet services provided by TEO, the company which has developed the
most extensive telecommunications network in Lithuania, are available for use
to about half of the country's population - 570 thousand households.
Next-generation services are being developed at the fastest rate in the
country's biggest cities - they are available for use to approximately 86
percent residents of Vilnius, 95 per cent residents of Klaipėda, 75 percent
residents of Kaunas, more than half of Panevėžys and Šiauliai residents. 

It is planned that this year TEO investments in the FTTH network, which is
being expanded in fifty cities of Lithuania, will amount to more than LTL 70
million. Total investments in the next-generation network will by the end of
2011 exceed LTL 325 million. 

According to the data released by the FTTH Council Europe, Lithuania is the
country which deploys fiber-optic Internet technologies at the fastest rate in
Europe. In the middle of 2010, fiber-optic Internet access was used by more
than 21 per cent households in the country - almost twice as much as in Sweden,
Norway and Slovenia, which, according to the published rating, take positions
from 2 to 4. 

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. 

Many of TEO FTTH Internet users - approximately 88 thousand - currently use the
FTTH (Fiber-to-the-home) technology, about 12 thousand - FTTB
(Fiber-to-the-building). At the end of 2010, the total number of TEO Internet
service users reached nearly 346 thousand. 


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