TeliaSonera January-June 2004 - Pro Forma 1)

Six-month period
· Net sales totaled SEK 40,535 million (40,624).
· Net income increased to SEK 6,553 million (3,183) and earnings per share to SEK 1.40 (0.68). Goodwill amortization in the comparative period was SEK 2,121 million.

Second quarter
· Net sales increased 2 percent to SEK 20,589 million.
· Operating income increased to SEK 5,650 million (2,817). Excluding non-recurring items3), operating income improved to SEK 5,063 million (4,036). Goodwill amortization in the comparative quarter was SEK 1,073 million.
· Market positions maintained at the expense of lower margins. The EBITDA margin decreased to 36 percent (40).
· The number of customers grew by 9 percent to 22.8 million. In the associated companies, the increase was 37 percent to 30.4 million.
· Acquisition of Orange Denmark announced.
· Dividend policy specified and capital structure addressed

Comments from Anders Igel, President and CEO
"We have maintained or improved our market positions and reached an operating income of more than SEK 5 billion in a very competitive market with significant price pressure."

"During the next years, the Nordic and Baltic markets will face a transi-tion period, where migration from fixed to mobile and Internet-based services is expected to accelerate. It is the ambition of TeliaSonera to take the lead in this transition and to handle the necessary changes within the group."

"The Orange deal in Denmark will give us critical mass to become a powerful contender to the two dominating players in the Danish market."

"It is satisfying to see that our strong financial position enables us to give higher returns to our many shareholders."

Dividend Policy and Capital Structure
The Board of Directors has decided on a dividend policy for TeliaSonera to distribute 30-50 percent of net income.

In addition the Board of Directors has evaluated the future cash flows and balance sheet projections. Strong cash flows and the possible foreseeable acquisitions within current market footprint allow the com-pany to return an additional SEK 30 billion to shareholders over the period 2005-2007. In case there are attractive investment opportunities available in addition to the current plan, this figure can be adjusted. The Board of Directors will evaluate the various means to return the money and present a proposal to a shareholders' meeting.

Outlook
TeliaSonera's ambition is to strengthen and improve the operations and position within the current footprint and to maintain or increase market shares.

During the next years, the Nordic and Baltic markets are expected to have an overall good volume development in a very competitive environment with continued price pressure. Migration from fixed to mobile and Internetbased services will accelerate. During this transition pe-riod, total market sales growth will be limited. Longer term, however, we expect market growth to return to higher levels.

In the important growth operations of Eurasian Fintur, Russian MegaFon and Turkish Turkcell we expect the very strong growth to continue. We will prioritize enhancing value growth in these operations.

The price pressure in the international carrier market has been stronger than previously expected. Positive cash flow defined as EBITDA less CAPEX is not expected to be reached for the full year.

CAPEX for 2004 is expected to increase somewhat in comparison with last year.

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Clarification
Due to incorrect statements in the press TeliaSonera would like to point out that the sentence "Positive cash flow defined as EBITDA less CAPEX is not expected to be reached for the full year" in the Outlook in TeliaSonera's January-June 2004 report only concerns the business unit International Carrier.

Of course, TeliaSonera Group expects to generate a positive cash flow also during the second half of the year 2004.

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