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2015-10-05

Telenor: Telenor Group announces intention to divest shares in VimpelCom Ltd.

(Fornebu, Norway 5 October 2015) Telenor Group today announced its intention
to divest all its shares in VimpelCom Ltd., where the company has an economic
stake of 33 per cent. Telenor Group will now fully focus on creating value in
core operations.

"The VimpelCom asset, where Telenor holds a minority position without the
possibility to fully control the company, has been challenging. Based on a
strategic review by the Board and the CEO, and after due considerations,
Telenor Group has decided to divest its shares in VimpelCom Ltd. The disposal
of our shares is in the best interest of our shareholders, and in accordance
with Telenor Group's long-term strategic focus," said Mr. Svein Aaser,
Chairman of the Board of Directors of Telenor Group.

VimpelCom Ltd. has gradually contributed less to the value of Telenor Group,
and the value of Telenor's core operations have increased rapidly. Today, the
market value of the VimpelCom Ltd. shares represents approximately eight per
cent of Telenor's market capitalization.

"We have maintained growth through solid performance from our controlled
operations and will continue to focus on value creation in our core
operations. Our ambition is to drive profitable growth in the telecom
business, where Telenor will continue to monetize on the exponential data
usage taking place across our footprint," said Mr. Sigve Brekke, President
and CEO of Telenor Group.

Telenor Group has invested NOK 15 billion in VimpelCom. The company has
received NOK 20 billion in dividends and the current market value of the
ownership stake is approximately NOK 20 billion.
Telenor Group will explore all options to divest its shares in VimpelCom Ltd.,
and will seek to find the best solution for Telenor and its shareholders. A
timeframe for the divestment has not been set, but a process like this will
normally take some time. As a result of today's announcement Telenor will not
convert its VimpelCom Ltd. preferred shares into common shares.

The Vimpelcom Ltd stock declined in the third quarter and ended at USD 4.11
per share vs book value of USD 5.64 per share. As a consequence of the
intention to divest, impairment evaluations going forward will be based on
the market price of the Vimpelcom Ltd share. This will result in a non-cash
impairment of approximately NOK 7.5 billion in the third quarter.

Contact:

Severin Roald
SVP and Head of Group Communications
Telenor Group
Mobile: +47 920 30 033
severin.roald@telenor.com

Glenn Mandelid
Vice President Communications
Mobile: +47 926 61 300
glenn.mandelid@telenor.com

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Telenor via Globenewswire

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