TEO LT, AB - Notification on material event

Decisions of the Board

On 25 March 2011 the Board of TEO LT, AB (hereinafter TEO or “the Company”)
decided: 

- To approve the draft of annual financial statements of the Company and
consolidated group for the year 2010, prepared according to International
Financial Reporting Standards, and to propose to the Company's Annual General
Meeting of Shareholders to approve the draft set of the audited annual
financial statements of the Company for the year 2010. 

Audited financial results of TEO Group for the year 2010 are the same as on 1
February 2011 announced results for the twelve months of 2010: consolidated TEO
Group revenue for the year 2010 amounted to LTL 773,423 thousand (EUR 223,999
thousand) and profit for the period was LTL 162,935 thousand (EUR 47,189
thousand). 

- To approve the Company's Consolidated Annual Report for the year 2010,
prepared by the Company and assessed by the auditors, and to present the
Consolidated Annual Report of the Company for information to the Company's
Annual General Meeting of Shareholders. 

- To approve the draft of the Company's profit allocation for the year 2010 and
to propose for the Annual General Meeting of Shareholders to allocate the
profit according to the draft of the profit allocation: from the Company's
distributable profit of LTL 144,333 thousand (EUR 41,802 thousand) to allocate
LTL 139,827 thousand (EUR 40,497 thousand) for the dividend payment for the
year 2010 or LTL 0.18 (EUR 0.052) dividend per share. For annual payments
(tantiemes) to seven members of the Board for the year 2010 to allocate LTL 378
thousand (EUR 109 thousand), i.e. LTL 54 thousand per one member of the Board. 

- To convoke the Annual General Meeting of Shareholders in TEO LT, AB
headquarters, at room on 23 floor, Lvovo str. 25, Vilnius, Lithuania, at 13.00
on 28 April 2011, and to propose to the Annual General Meeting of Shareholders'
the following draft agenda: 

1. Information of the Company's auditor.

2. Approval of the annual financial statements of the Company and consolidated
group annual financial statements for the year 2010 and presentation of the
consolidated annual report of the Company for the year 2010. 

3. Allocation of the profit of the Company of 2010.

4. Amendments to the By-laws of the Company.

5. Regarding the Company's obligatory reserve.

6. Recall of the Company's Board members.

7. Election of the Company's Board members.

8. Regarding implementation of decisions.

- To propose to the Annual General Meeting of Shareholders to decrease
Company's obligatory reserve by LTL 3,817 thousand (EUR 1,105 thousand) and to
reallocate this amount to the Company's retained earnings. 

- To propose to the Annual General Meeting of Shareholders to amend the By-laws
of the Company by changing Article 9.1. part 1) of the By-laws as follows: “The
Members of the Board serving on the Board of the Company shall act jointly as a
governing body of the Company. The Board shall consist of 6 (six) Members of
the Board. The Members of the Board shall be elected for a term of 2 (two)
years. The Chairman of the Board shall be elected by the Board from its members
for 2 (two) years.” 

Currently valid By-laws of the Company provide that the Board shall consist of
7 (seven) members of the Board. 

- To approve the sale of a 100 per cent stake in UAB Interdata to UAB Hostex.
UAB Interdata and UAB Hostex are subsidiaries of UAB Baltic Data Center, which
is subsidiary of TEO LT, AB. 



ENCL.:

  -- Drafts of TEO LT, AB Financial Statements, Consolidated Annual and
     Independent Auditor's Reports for the year ended 31 December 2010.
  -- Presentation of TEO LT, AB results for the year 2010.


         Egle Gudelyte-Harvey,
         Director of Corporate Administration and Legal Affairs Unit,
         tel. +370 5 236 7292

Attachments:

2010_results.pdf

2010_Consolidated_Report.pdf

2010_IFRS_financial_report.pdf