Telia in Talks to Buy LMT

STOCKHOLM -- TeliaSonera AB, the leading telecommunications company in the Nordic and Baltic region, has on August 20, 2007, signed a Memorandum of Understanding with the Republic of Latvia and the management buyout consortium of Lattelecom to increase TeliaSonera’s shareholding in the leading mobile operator Latvijas Mobilais Telefons SIA (LMT) in Latvia, to 100 percent from 60.27 percent, and to divest TeliaSonera’s 49.0 percent holding in the Latvian fixed line operator SIA Lattelecom (Lattelecom).

Under such a transaction, TeliaSonera would acquire the Republic of Latvia’s 28.0 percent and Lattelecom’s 23.0 percent shareholdings in LMT, increasing TeliaSonera’s direct shareholding to 100 percent. Simultaneously, TeliaSonera would sell its 49.0 percent holding and the Republic of Latvia its 51.0 percent holding in Lattelecom, to the management buyout consortium of Lattelecom.

Any transaction is subject to final agreements between the parties on terms and conditions.

Telia Company