FORNEBU, Norway -- The Reitan group and Telenor have signed a five-year Nordic cooperation agreement covering Norway, Sweden and Denmark. Over its lifetime, the agreement is worth approximately NOK 250 million and strengthens Telenor's position in the Nordic market.

The Reitan group (Rema 1000, Reitan Eiendom and Reitan Servicehandel) has signed a Nordic telecom agreement with Telenor to supply WAN (Wide Area Network) services, and fixed and mobile telephony. The agreement is a renegotiation of the existing provision of WAN services in Norway and Sweden. In the new agreement Telenor will now also supply mobile telephony in Sweden and Denmark and the Reitan group in Denmark will be connected to the WAN network.

The value of the Reitan group's Nordic network is increasingly important to the chain's business operations. The network carries payment transactions such as electronic products and information. Currently, electronic products, for example tickets for trains, planes, concerts and sports arrangements and top-up payments for mobile phones, account for more than 50 per cent of Narvesen's sales. Sales of this type of product have increased steadily over recent years.

"With such a significant part of our operations based on sales of electronic products, combined with the Reitan group's rapid expansion in the Scandinavian market, it is important for us to team up with a large partner," says Olav Næss, Scandinavian IT Director for the Reitan group.

Telenor Group (Nasdaq: TELN)