Semiannual Report January - June 2001 Stockholm, 16 August 2001

Telia AB, IR, eng 2 Highlights Telia achieved double-digit growth for comparable units, +10% during Q2 Strong growth in our core business Mobile +59% International Carrier +34% Internet Services +32% Networks +2% The number of broadband customers increased during Q2 by 66,000 to 203,000 Telia’s refine and focus strategy strengthened the Group financially and reduced the number of employees Networks sharpened its focus through the acquisition of Powercom and sale of the Finnish network

Telia AB, IR, eng 3 Paying broadband customers (‘000) Narrowband Internet subscriptions increased by 11% from 652,000 H to 724,000 H Narrowband Internet subscriptions increased by 11% from 652,000 H to 724,000 H High-speed Internet via cable Broadband expansion

Telia AB, IR, eng 4 Mobile Q2 sales growth +59% Sweden +16% Telia’s mobile network best in all categories Letter of Intent signed between Svenska UMTS- nät and Ericsson Norway +35% *) First UMTS call made Denmark +91% Number portability introduced Finland +60% Dual-prepaid launched Robust improvement in profitability in underlying EBITDA +139% Exceptionally strong customer growth in the Baltic states and Russia Speedy Tomato - best mobile portal *) Pro forma

Telia AB, IR, eng 5 1) Total proportional customer base 5.1 million Total proportional customer base 5.1 million Norway 884, ,000 Sweden 3,323, ,000 GSM customer growth +99,000 Denmark 354, ,000 Finland 167, ,000 Russia North West GSM (12.7% %) through Telecominvest 366, ,000 ** Estonia Eesti Mobiilitelefon (24.5%) 362, ,000 ** Latvia Latvijas Mobilais (24.5%) 300, ,000 ** Lithuania Omnitel (27.5%) 400, ,000 ** 1) Jan-Jun, excl. 110,000 SP customers 2) Jan-Jun, excl. 71,000 SP customers ** Total number of customers 2) Customer base, Nordic countries 4,728, ,000 Customer base, Nordic countries 4,728, ,000 Customer base, Baltic states/Russia 1,428, ,000 Customer base, Baltic states/Russia 1,428, ,000 Customer growth H1 Mobile

Telia AB, IR, eng 6 Prepaid Total Subscription Prepaid Total Subscription Mobile Sweden Churn 7%

Telia AB, IR, eng 7 Prepaid Total Subscription Prepaid Total Subscription Mobile Norway Churn 29%

Telia AB, IR, eng 8 Continued growth for SMS Share of sales Q Sweden 4%, Norway 13% Share of sales Q Sweden 4%, Norway 13% JanFeb Mar Apr May June July Aug Sep Oct Nov Dec Mobile

Telia AB, IR, eng 9 Rapid launch of new services bikePosition Nära dig Väder Nära dig Weather forecasts for the area where you are Helps you find the postal service location in the area where you are MobileNation New youth site for mobile services P MC information on the road Posten Nära dig Microbetalningar Mobil Mejl Send and receive Using your mobile phone Make payments using your mobile phone Mobile

Telia AB, IR, eng 10 Key events Q2 Robust growth in capacity business +453% Strong growth in IP business +77% Decision to continue expansion in the Middle East and Eastern Europe TAT 14 brought into service Renewed positive development in Voice business Renegotiated IRU agreement valued at GSEK 1.2 Selected as one of three main suppliers of capacity to GEANT Awarded Best Internet Service Provider in the United States International Carrier

Telia AB, IR, eng 11 International Carrier Network in service: Infrastructure network expansion 30 June 2001 Total fibre network km (in use) 26,000 Ducts km (Europe)8,000 PoPs (total)62 Network investments (MSEK): Telia’s investments 9,714 Market value swaps 3,427 Network in service: Infrastructure network expansion 30 June 2001 Total fibre network km (in use) 26,000 Ducts km (Europe)8,000 PoPs (total)62 Network investments (MSEK): Telia’s investments 9,714 Market value swaps 3,427 Rapid completion of network

Telia AB, IR, eng 12 Networks Revenues climbed 2% during Q2 Fixed network in Finland divested Danish network operator Powercom acquired Continued focus on streamlining costs, broadband and other value-added services Finland Telia Finland OY divested Denmark Powercom acquired

Telia AB, IR, eng 13 Q1-Q Q Q Q Q Scandinavia Online (listed) Altitun 13 June IN good company AB Starman Kaabel- televisiooni AS Svefo AB Telia Contracting Telia Kompetens Telia Konferens Smålands- börsen Data AB Telia Academy AB System & Service A/S Eniro (listed) Sale of 51% in: Swedia Networks AB Telia Prosoft AB Respons AB Validation AB Telia Swedtel AB Telia Dokumentation AB Multicom Security AB TA Teleadress Information AB Combinator IT AB Eircom (Eircell) Telia Trading AB Si.Mobil DRS Tess Eniro Telia Finland OY Continued refine and focus strategy

Telia AB, IR, eng 14 Associated companies Capital gain upon sale MSEK 2,623 Share of earnings 2000: GSEK -1.6 Write-down of remaining goodwill in Netia MSEK -1,820 Share of earnings 2000: MSEK -411 Eircell divested to Vodafone Vodafone shares sold for MSEK 3,500 Telia accepted offers totaling MSEK 3,900 Share of earnings 2000: MSEK -933

Telia AB, IR, eng 15 Reduced number of employees 22, June December Continued refine and focus strategy 46, Dec 1991

Telia AB, IR, eng 16 Continued robust growth in sales and earnings in our core business Continued strong implementation of the refine and focus strategy Outlook for 2001

Telia AB, IR, eng 17 The Telia Group in Brief Financial overview Q2Q2H1H1 (MSEK) Net sales13,18014,20326,03727,795 Underlying EBITDA2,8573,0146,1176,362 - margin % Operating income ,8701,799 Earnings per share (SEK)

Telia AB, IR, eng 18 Effects of the refine and focus strategy (Equity) Financial overview (MSEK) Remaining companies (MSEK) Remaining companies Sales Underlying EBITDA

Telia AB, IR, eng 19 Group net sales Financial overview Quarterly (MSEK)Rolling (MSEK)

Telia AB, IR, eng 20 External net sales, Q2 Financial overview Q Q (MSEK) Change % Mobile+58.6 International Carrier+33.9 Networks+2.1 Internet Services+32.2 Equity-57.6 Group-wide-23.6 Total for the Group+7.8 of which core business +18.0

Telia AB, IR, eng 21 Underlying EBITDA, Q2 Financial overview Q Q (MSEK) Change % Mobile International Carriern/m Networks+8.1 Internet Services+58.3 Equity-86.2 Group-wide+21.1 Total for the Group+5.5 of which core business +35.0

Telia AB, IR, eng 22 Share of earnings in associated companies Financial overview (MSEK)H1 2000H Netia Holdings (Networks) , Baltic states (Mobile/Networks) Unisource/AUCS (Networks) 1, ,445 Comsource/Eircom (Networks) Telia Overseas (Equity) -6432,601-1,719 Eniro (Equity) Other associated companies Total ,197

Telia AB, IR, eng 23 Market value, associated companies Financial overview ParticipationBookMarket (%)valuevalue (MSEK) per 30 Juneper 14 Aug Eniro AB (Sweden) 49,11,4538,144 Scandinavia Online AB (Sweden) 24, AS Eesti Telekom (Estonia) 24,55871,122 AB Lietuvos Telekomas (Lithuania) 30,02, Netia Holdings S.A. (Poland) 48, Infonet Services Corp. (USA) 20,12,2003,607 Eircom plc14,02,7333,824 Total10,38617,881 *) Incl. loans totaling MSEK 3,057 *)

Telia AB, IR, eng 24 CAPEX Financial overview (MSEK)Q2Q2H1H Mobile ,187 International Carrier1,9661,1112,4542,258 Networks1,2631,4452,0022,881 Internet Services Equity Group-wide Total for the Group3,8413,6666,0267,234

Telia AB, IR, eng 25 Financial position Financial overview 31 Dec31 Mar30 June Net interest-bearning liability (MSEK)20,23524,42519,069 Balance sheet total (MSEK)122,715127,062130,192 Debt/equity ratio (multiple) Equity/assets ratio (%)

Telia AB, IR, eng 26 Financial overview Change in net liability Under- lying EBITDA Net invest- ments 30 June Jan 2001 Divest- itures Tax 20,235 1,078 9,234 7,405 6, ,069 (MSEK) OtherDividend 1,501