Eesti Telekom                    ANNOUNCEMENT                      23.12.2004



TeliaSonera increases Eesti Telekom holding



TeliaSonera increases Eesti Telekom holding above 50 percent and consolidates the

company



Following today's share purchase in Eesti Telekom, TeliaSonera's ownership in

Eesti Telekom will exceed 50 percent, enabling TeliaSonera to consolidate the

company. Exceeding the 50 percent threshold requires TeliaSonera to make a

mandatory public offer for remaining shares in Eesti Telekom.



TeliaSonera has today in a transaction acquired 100 shares in Eesti Telekom for

EUR 7.02 (EEK 109.84) per share, which will increase TeliaSonera's ownership in

Eesti Telekom to slightly above 50 percent. As a result of TeliaSonera's

ownership exceeding 50 per cent, TeliaSonera will consolidate Eesti Telekom.

TeliaSonera is expected to consolidate Eesti Telekom as of December 28, when the

formal ownership of the shares acquired today is registered.



"Consolidating Eesti Telekom is an important step in pursuing our strategy to

strengthen TeliaSonera as the leading telecom operator in the Nordic and Baltic

region," TeliaSonera's CEO Anders Igel stated.



Upon exceeding the 50 percent threshold, TeliaSonera will launch a mandatory

public offer for all Eesti Telekom shares in accordance with the Securities

Market Act of Estonia. TeliaSonera offers EUR 7.02 in cash for each share, which

is the same per share price paid by TeliaSonera in today's purchase. The price is

conditional upon approval by the Estonian Financial Supervision Authority (FSA).

The offer value of the shares not already owned by TeliaSonera (49.99 percent) is

EEK 7.576 million (EUR 484 million).



Following approval by FSA, notice and prospectus detailing the mandatory offer

will be published. The printed prospectus will be made available at the Hansapank

main branch at Liivalaia 8, Tallinn, Estonia.



The acceptance period for the mandatory offer begins on the date when the

prospectus is published and will last for 42 days. FSA will be notified of

TeliaSonera's mandatory public offer on December 28, when TeliaSonera's

increased ownership in Eesti Telekom will be registered. FSA shall have to make a

decision regarding the approval of the prospectus and offer price within 15 days.



The shares of Eesti Telekom are listed on the Tallinn Stock Exchange (HEX:ETLAT)

and global depository receipts (GDRs) representing the shares of Eesti Telekom

are admitted to the official list of the United Kingdom Listing Authority and to

trading on the London Stock Exchange.





AS Eesti Telekom and subsidiary companies





                            9 months 2004 9 months 2003 2003  2002   

                                                                     

                            or 30 Sept    or 30 Sept                 

                            2004          2003                       

 Net sales (SEK million)    2,205         2,034         2,763 2,619  

 EBITDA (SEK million)       945           963           1215  1224   

 EBIT (SEK million)         585           576           711   648    

 CAPEX (SEK million)        171           180           324   360    

 Mobile Subscribers, EMT    557           464           492   428    

 (000)                                                               

 Main lines (fixed), Elion  427           446           445   465    

 (000)                                                               

 Internet Subscribers,      68            51            57           

 Elion (000)                                                         

                                                                     

 Exchange rates: 1 EUR =                                             

 9.00 SEK                                                            





_____________________________________________

For further information journalists can contact:

Kjell Lindström, Head of Communications, TeliaSonera Norway, Denmark, Baltic

countries, tel: +46-(0)70-5954430

TeliaSonera´s Press Office, +46-(0)8-713 58 30







[This press release may not be published, distributed, diffused or otherwise sent

in or into the United States of America (including its territories and

possessions, every State of the United States and the District of Columbia),

Canada, Japan or Australia and it does not constitute an extension into the

United States, Canada, Japan or Australia of the offer mentioned in this press

release.



The offer mentioned in this press release is not being made in the Republic of

Italy and has not been cleared by CONSOB pursuant to Italian laws and

regulations.  Accordingly, persons resident in Italy may not participate in this

offer and neither this press release nor any other material relating to the offer

may be distributed or made available in the Republic of Italy.



This press release does not constitute an offer to buy or the solicitation of an

offer to sell any securities pursuant to the offer mentioned in this press

release or otherwise.  This press release must not be passed on to anybody else.



The full terms and conditions of the offer mentioned in this press release will

be set out in the prospectus detailing this offer to be published after its

approval by the Estonian Financial Supervision Authority and, in the case of

relevant global depositary receipt ("GDR") holders of AS Eesti Telekom, the

instructions which will be made available by Baltic Tele AB to such GDR holders

on how this offer may be accepted by them.  Relevant holders of shares or GDRs of

AS Eesti Telekom may rely only on such prospectus and instructions for all the

terms and conditions of this offer.



The offer mentioned in this press release is directed only at persons outside the

United Kingdom or having professional experience in matters relating to

investments and this offer is available only to and will be engaged in only with

such persons.  Persons in the United Kingdom who do not have professional

experience in matters relating to investments should not rely or act on any

information included in this press release.



The availability of the offer mentioned in this press release may be affected by

the laws of jurisdictions in addition to those mentioned above and holders of

shares or global depositary receipts of AS Eesti Telekom must inform themselves

about and observe any such restrictions.]





Forward-Looking Statements



Statements made in the press release relating to future status or circumstances,

including future performance and other trend projections are forward-looking

statements. By their nature, forward-looking statements involve risk and

uncertainty because they relate to events and depend on circumstances that will

occur in the future. There can be no assurance that actual results will not

differ materially from those expressed or implied by these forward-looking

statements due to many factors, many of which are outside the control of

TeliaSonera.