Telenor: Settlement with WR Com Enterprises Ltd.

OSLO, Norway, Oct. 8, 2003 (PRIMEZONE) -- Telenor (Nasdaq:TELN) has made a settlement with WR Com Enterprises Ltd., a Cypriot company. Under the terms of the settlement, Telenor will pay to WR Com Enterprises EUR 33,6 million.The background for the litigations is the claim of an alleged breach of contract when Telenor B-Invest AS sold Cosmote-shares to WR Com Enterprises Ltd and Telenor Greece AS acquired WR Com Enterprises Ltd's shares in Telenor B-Invest AS. Telenor B-Invest AS was a holding company with 30 per cent of the shares in the Greek mobile operator Cosmote. Originally Telenor Mobile Communications AS and WR Com Enterprises Ltd owned 73.33 per cent and 26.67 per cent of the shares in Telenor B-Invest AS respectively.

In the autumn of 2000 Telenor B-Invest AS sold 8 per cent of the total outstanding share capital in Cosmote to WR Com Enterprises Ltd. Simultaneously Telenor Greece AS acquired all of WR Com Enterprises Ltd's shares in Telenor B-Invest AS. The alleged breach of contract arose from these transactions. In January 2003 the City court in Athens, Greece ruled in favour of WR Com Enterprises Ltd, Cyprus. According to the verdict WR Com Enterprises claimed approximately NOK 530 mill including interest against Telenor Mobile Communications AS. As a consequence of the settlement, all legal proceedings have been stopped and the arrest claim on Telenor's Cosmote shares has been lifted.

Following this settlement Telenor will reverse the previous expense provisions of approx. NOK 300 million, mainly on the levels for tax and interest expenses in the accounts.


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