Dear Telenor IR News Subscriber,

Telenor's subsidiary in Thailand, dtac, has today reached an agreement to settle legal disputes with CAT Telecom Public Company Limited ("CAT"). According to this agreement, dtac will pay a total amount of THB 9.51 bn (around NOK 2.5 bn) to CAT. The settlement is subject to approval from dtac's Annual General Meeting in 2019.

Over the 27 year concession period, dtac and CAT have been engaged in numerous litigation cases, mostly over differences in interpretation of the concession agreement. The most significant of these disputes have been disclosed in Telenor's annual reports since 2014.  Today's settlement will close all, except two, issues between dtac and CAT, and will also bar the parties from bringing new claims pertaining to the concession regime. The two issues not included in the overall settlement with CAT are two industry cases related to revenue sharing concerning excise tax and interconnection charges, both disclosed in the annual report 2017.

Telenor has previously made provisions of around NOK 0.4 bn for some of the disputes which are now included in the settlement between dtac and CAT. The remaining amount of around NOK 2.1 bn will be provided for in Q4 2018 as "Other income and expenses".

dtac's payment to CAT will be made in installments. The first installment of THB 6.8 bn (around NOK 1.8 bn) will be made once the final approval from the Annual General Meeting is obtained. The remaining THB 2.7 bn (around NOK 0.7 bn) will be made in smaller installments as the various court cases are withdrawn from the courts.  

Best regards,

Telenor Investor Relations