TEO LT, AB - Interim information

Results for the three months of 2011

On 18 April 2011, the Board of TEO LT, AB (hereinafter - “TEO” or “the
Company”) approved unaudited TEO LT, AB Consolidated Interim Financial
Statements, prepared according to International Financial Reporting Standards
as adopted by the European Union, for the three months period ended 31 March
2011. 

The total consolidated TEO Group's revenue in January-March of 2011 was LTL 186
million (EUR 54 million), a decrease by 3.2 per cent over the total revenue of
LTL 192 million (EUR 56 million) in the first three months of 2010. 

EBITDA for the first three months of 2011 went down by 9.2 per cent to LTL 74
million (EUR 21 million) over LTL 81 million (EUR 24 million) in the first
three months of 2010. EBITDA margin amounted to 39.8 per cent (42.4 per cent in
2010). 

Profit before income tax in the first three months of 2011 was down by 14.5 per
cent and amounted to LTL 42 million (EUR 12 million) (LTL 49 million (EUR 14
million) a year ago). 

Profit for the period amounted to LTL 38 million (EUR 11 million), while a year
ago it was LTL 43 million (EUR 12 million), a decrease by 12.4 per cent. The
profit margin was 20.3 per cent (22.4 per cent a year ago). 

Management's comment on financial results for the three months period of 2011:

“TEO produced strong results in the first quarter of 2011. The pace of revenue
decline slowed down twice to 3.2 per cent compared to the same period in 2010.
The Company's revenue was LTL 186 million (EUR 54 million) - just in line withour expectations. Operating expenses were slightly higher than during the first
quarter of 2010 due to non-recurring costs. TEO investments during the first
quarter of 2011 stood at LTL 14.6 million (EUR 4 million). 

TEO's broadband customer base continued to increase, offsetting customer
shrinkage in voice services. During the first quarter of 2011 the number of
next-generation fiber-optic Internet users increased more than 9 per cent. A
recovering increase in the number of business customers and the decreasing
levels of bad debts signal that economic recovery is underway, which gives good
prospects for the whole year.” 

ENCL.:

- TEO LT, AB Consolidated Interim Financial Statements for the twelve months
period ended 31 March 2011. 

- Presentation of TEO LT, AB results for the first quarter of 2011


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

Attachments:

2011_3_months_report.pdf

2011_3_months_results.pdf