Strong Momentum Confirmed in Fourth Quarter

Strong momentum confirmed in fourth quarter

In the fourth quarter of 2010, Telenor Group reported revenues of NOK 24.9 billion, representing an organic revenue growth of eight per cent. EBITDA before other items was NOK 7.2 billion, EBITDA margin was 29 per cent, and operating cash flow margin was 14 per cent. For the full year of 2010, Telenor's revenues was NOK 94.8 billion, EBITDA before other items was NOK 29.2 billion, EBITDA margin was 31 per cent and operating cash flow margin was 19 per cent. Telenor's consolidated mobile operations added close to eight million subscriptions during the fourth quarter and 23 million during the year (1).

"Telenor confirms its position as one of Europe's fastest growing telcos, with organic revenue growth of 8% and strong operational performance. In 2010, the Telenor Group had an operating cash flow of NOK 18 billion and a solid EBITDA margin," said Jon Fredrik Baksaas, President and CEO of Telenor Group.

All-time high shareholder remuneration

"The share buyback programme for 2010 was completed in the fourth quarter. Together with the dividends paid out in May 2010 this resulted in an all-time high shareholder remuneration of NOK 9 billion. Based on the strong financial performance the Management and the Board of Directors propose a dividend of NOK 3,80 per share for 2010, a pay-out ratio in the high end of the dividend policy range," Baksaas said.

Operational excellence

"Our operational excellence programmes are progressing towards the ambitious targets announced in 2010. Going forward, we expect significant long term effects from the ongoing investments in network modernisations. Our ambition is to improve efficiency and enhance customer experience through high quality services," Baksaas said.

13% growth in Asia, overall satisfactory in Nordic and CEE regions

"The established Asian operations reported 13% organic revenue growth in the fourth quarter and obtained an operating cash flow above NOK 10 billion for 2010. Uninor in India added more than four million subscriptions in the fourth quarter and I am pleased to see that our go-to-market model is gradually improving. India is a very competitive market coupled with a challenging regulatory environment, and we are focusing strongly on establishing Uninor as an ultra low cost operator," Baksaas said. "In the Nordic and the CEE regions, overall performance was satisfactory. However, increased competition in some of the markets requires innovative market approaches and further cost measures," Baksaas said.

VimpelCom

"In January, the Supervisory Board of VimpelCom approved the acquisition of Wind Telecom, and VimpelCom management said it would schedule a shareholders meeting to approve the issuance of new shares in connection with the transaction. In December, Telenor announced its opposition to the

Telenor Group is one of the world's major mobile operators. We keep our customers connected in our markets across Scandinavia and Asia. Our more than 30,000 employees are committed to responsible business conduct and being our customers' favourite partner in digital life. Connecting the world has been Telenor's domain for more than 160 years, and we are driven by a singular vision: to empower societies. transaction because, from Telenor's perspective, it was not strategically nor financially sound for VimpelCom shareholders. At this stage, we believe it is essential that VimpelCom focus on regaining a loss of momentum in the Russian market. On 28 January, Telenor commenced arbitration proceedings against VimpelCom and Altimo to secure Telenor pre-emptive rights and avoid dilution in the event the transaction is completed," Baksaas ends.

Key figures

The table below contains key figures for the fourth quarter and full year of 2010, compared to the previous year. For more information please refer to the quarterly report. Fourth Year quarter (NOK 2010 2009 2010 2009 in mill ions e xcept earni ngs per sh are) Reven24 22 94 90 ues 858 418 843 748 EBITD 7 179 6 933 29 30 A bef 220 670 ore other incom e and expen ses EBITD 28.9 30.9 30.8 33.8 A mar gin be fore other incom e and expen ses (%) Adjus 3 034 3 146 13 15 ted o 086 765 perati ng profit Adjus 12.2 14.0 13.8 17.4 ted o

Telenor Group is one of the world's major mobile operators. We keep our customers connected in our markets across Scandinavia and Asia. Our more than 30,000 employees are committed to responsible business conduct and being our customers' favourite partner in digital life. Connecting the world has been Telenor's domain for more than 160 years, and we are driven by a singular vision: to empower societies. perati ng pr ofit/R evenu es (%) Profit 2 104 2 167 14 8 653 after 334 taxes and n on-co ntrolli ng int erests 2 Earni 1.29 1.31 8.69 5.22 ngs per share from total opera tions, basic, in NOK 3 783 5 455 11 15 688 722

3 Capex3 783 5 455 11 35515 excl. l 722 icenc es and s pectr um Capex15.2 24.3 12.0 17.3 excl. l icenc es and s pectr um/R evenu es (%) Opera3 395 1 478 17 14

To the editorial offices:

Press and analyst conference In connection with the publication of the financial results, a press and analyst conference will be held on Tuesday 8 February 2011 at 09:00 hrs Norwegian time/CET. The presentation will be held in Auditorium A, Telenor Expo Visitors' Centre, at the Telenor Headquarters at Fornebu outside Oslo. President and CEO Jon Fredrik Baksaas and CFO Richard Olav Aa will present the results. All presentations will be given in English. Internet and mobile broadcast The press and analyst conference will be broadcast live over the Internet, and a recorded version will be made available. During the live transmission, written questions may be submitted via the Internet. The conference will also be available live, and in a recorded version, on mobile phones. For more details please refer to www.telenor.com/en/investor-relations/reports/q4-2010 Conference call and Q&A The press and analyst conference will also be available as a conference call. This service also allows participants to ask questions at a concluding Q&A session, which will be held immediately after the presentation and a brief Q&A session in the auditorium. Please register well in advance on (+47) 800 80 119 (from Norway) or (+47) 23 18 45 01 (from Norway or abroad). Materials English language versions of the full quarterly report and all presentations used during the press and analyst conference will be made available at www.telenor.com/en/investor-relations/reports/q4-2010 at 07:00 and 08:45 hrs Norwegian time/CET, respectively. 1 As of the fourth quarter the total mobile subscriptions stand at 203 million, including 92 million subscriptions from VimpelCom Ltd. 2 'Profit after tax and non-controlling interests' included actual figures for Kyivstar GSM JSC and estimated results for OJSC VimpelCom until 31 December 2009. As of the first quarter 2010, figures for OJSC VimpelCom and Kyivstar GSM JSC were included with a one quarter lag. The second quarter included a gain related to the contribution of Kyivstar to the new entity VimpelCom Ltd. of approxiately NOK 6.5 billion. Please refer to the section 'Associated companies' on page 17 in the quarterly report for further details. 3 Capex is defined as capital expenditures from continuing operations. 4 Operating cash flow is defined as EBITDA before other income and expenses - Capex, excluding licenses and spectrum.