TEO LT, AB - Notification on material event

Procedure for the payout of dividends for the year 2010

On 28 April 2011, the Annual General Meeting of Shareholders of TEO LT, AB
(code 1212 15434, registered address: Lvovo str. 25, Vilnius, Lithuania)
decided to allocate the Company's profit for the year 2010 and to pay out 0.18
litas dividend per share. 

Dividends will be paid to the shareholders who at the end of the tenth business
day following the day of the Annual General Meeting that adopted a decision on
dividend payment, i.e. on 12 May 2011 will be shareholders of TEO LT, AB. 

From 26 May 2011 the dividends will be paid out in the following order:

- to the shareholders, who's TEO LT, AB shares are accounted by a financial
brokerage company or credit institutions, which provide securities accounting
services, the dividend amount, after deduction of Personal or Corporate
withholding income tax applicable by the laws of Lithuania, will be transferred
to the shareholders' accounts held with a respective financial brokerage
company or credit institution; 

- to the shareholders, who's TEO LT, AB shares on behalf of the Company are
accounted by the authorised custodian AB SEB Bank, the dividend amount, after
deduction of Personal or Corporate withholding income tax applicable by the
laws of Lithuania, will be transferred to the shareholders' accounts with AB
SEB Bank or the accounts with any other Lithuanian commercial bank as indicated
by the shareholders (requests with account indications should be submitted to
any branch of SEB Bank). 

Dividends for the year 2010 will be taxed in the following order:

- dividends paid to natural persons-residents of the Republic of Lithuania and
natural persons-residents of foreign countries are subject to withholding
Personal income tax of 20 per cent; 

- dividends paid to legal entities of the Republic of Lithuania and legal
entities-residents of foreign countries are subject to withholding Corporate
income tax of 15 per cent, unless otherwise provided for by the laws. 

Residents of the foreign countries, which have concluded agreements on
Avoidance of Double Taxation with the Republic of Lithuania, could take
advantage of reduced tariffs provided by such agreements by submitting Claim
for Reduction or Exemption from the Anticipatory Tax Withheld at Source, form
FR0021 (DAS-1). The form should be completed following the law requirements and
presented to SEB Bank together with the broker's confirmation by 20 May 2011. 



For additional information on payout of the dividends please contact AB SEB
Bank by phone +370 5 268 1528. 






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