1. Semiannual Report January - June 2001 Stockholm, 16 August 2001

2. Telia AB, IR, 010-2001 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

3. Telia AB, IR, 010-2001 eng 3 Paying broadband customers (‘000) Narrowband Internet subscriptions increased by 11% from 652,000 H1 2000 to 724,000 H1 2001 Narrowband Internet subscriptions increased by 11% from 652,000 H1 2000 to 724,000 H1 2001 High-speed Internet via cable Broadband expansion

4. Telia AB, IR, 010-2001 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

5. Telia AB, IR, 010-2001 eng 5 1) Total proportional customer base 5.1 million Total proportional customer base 5.1 million Norway 884,000 +34,000 Sweden 3,323,000 +66,000 GSM customer growth +99,000 Denmark 354,000 +57,000 Finland 167,000 +18,000 Russia North West GSM (12.7% + 11.3%) through Telecominvest 366,000 +113,000 ** Estonia Eesti Mobiilitelefon (24.5%) 362,000 +35,000 ** Latvia Latvijas Mobilais (24.5%) 300,000 +30,000 ** Lithuania Omnitel (27.5%) 400,000 +91,000 ** 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 +175,000 Customer base, Nordic countries 4,728,000 +175,000 Customer base, Baltic states/Russia 1,428,000 +269,000 Customer base, Baltic states/Russia 1,428,000 +269,000 Customer growth H1 Mobile

6. Telia AB, IR, 010-2001 eng 6 Prepaid Total Subscription Prepaid Total Subscription Mobile Sweden Churn 7%

7. Telia AB, IR, 010-2001 eng 7 Prepaid Total Subscription Prepaid Total Subscription Mobile Norway Churn 29%

8. Telia AB, IR, 010-2001 eng 8 Continued growth for SMS Share of sales Q2 2001 Sweden 4%, Norway 13% Share of sales Q2 2001 Sweden 4%, Norway 13% JanFeb Mar Apr May June July Aug Sep Oct Nov Dec Mobile

9. Telia AB, IR, 010-2001 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 e-mail Using your mobile phone Make payments using your mobile phone Mobile

10. Telia AB, IR, 010-2001 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

11. Telia AB, IR, 010-2001 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

12. Telia AB, IR, 010-2001 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

13. Telia AB, IR, 010-2001 eng 13 Q1-Q2 2000 Q3 2000 Q4 2000 Q1 2001 Q2 2001 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

14. Telia AB, IR, 010-2001 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

15. Telia AB, IR, 010-2001 eng 15 Reduced number of employees 22,468 30 June 2001 31 December 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Continued refine and focus strategy 46,213 31 Dec 1991

16. Telia AB, IR, 010-2001 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

17. Telia AB, IR, 010-2001 eng 17 The Telia Group in Brief Financial overview Q2Q2H1H1 (MSEK) 2000200120002001 Net sales13,18014,20326,03727,795 Underlying EBITDA2,8573,0146,1176,362 - margin %21.721.223.522.9 Operating income4889883,8701,799 Earnings per share (SEK)0.100.080.940.18

18. Telia AB, IR, 010-2001 eng 18 Effects of the refine and focus strategy (Equity) Financial overview (MSEK) Remaining companies (MSEK) Remaining companies Sales Underlying EBITDA

19. Telia AB, IR, 010-2001 eng 19 Group net sales Financial overview Quarterly (MSEK)Rolling (MSEK)

20. Telia AB, IR, 010-2001 eng 20 External net sales, Q2 Financial overview Q2 2000 Q2 2001 (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

21. Telia AB, IR, 010-2001 eng 21 Underlying EBITDA, Q2 Financial overview Q2 2000 Q2 2001 (MSEK) Change % Mobile+139.0 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

22. Telia AB, IR, 010-2001 eng 22 Share of earnings in associated companies Financial overview (MSEK)H1 2000H1 20012000 Netia Holdings (Networks) -167-1,922-411 Baltic states (Mobile/Networks) 7280190 Unisource/AUCS (Networks) 1,063-1101,445 Comsource/Eircom (Networks) -520-966-933 Telia Overseas (Equity) -6432,601-1,719 Eniro (Equity) -380185 Other associated companies127-1246 Total-6851-1,197

23. Telia AB, IR, 010-2001 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) 24,626367 AS Eesti Telekom (Estonia) 24,55871,122 AB Lietuvos Telekomas (Lithuania) 30,02,622848 Netia Holdings S.A. (Poland) 48,1528269 Infonet Services Corp. (USA) 20,12,2003,607 Eircom plc14,02,7333,824 Total10,38617,881 *) Incl. loans totaling MSEK 3,057 *)

24. Telia AB, IR, 010-2001 eng 24 CAPEX Financial overview (MSEK)Q2Q2H1H1 2000200120002001 Mobile3426815761,187 International Carrier1,9661,1112,4542,258 Networks1,2631,4452,0022,881 Internet Services125240232476 Equity534207810485 Group-wide-389-18-48-53 Total for the Group3,8413,6666,0267,234

25. Telia AB, IR, 010-2001 eng 25 Financial position Financial overview 31 Dec31 Mar30 June 200020012001 Net interest-bearning liability (MSEK)20,23524,42519,069 Balance sheet total (MSEK)122,715127,062130,192 Debt/equity ratio (multiple)0.370.420.33 Equity/assets ratio (%)44.445.344.4

26. Telia AB, IR, 010-2001 eng 26 Financial overview Change in net liability Under- lying EBITDA Net invest- ments 30 June 2001 1 Jan 2001 Divest- itures Tax 20,235 1,078 9,234 7,405 6,362 788 19,069 (MSEK) OtherDividend 1,501