No Group-bonus in Telia - Sonera cash transaction bonus is paid

No Group-bonus in Telia - Sonera cash transaction bonus is paid

TeliaSonera has decided that the previously announced Telia Group bonus
for the year 2002 of maximum 30 MSEK will not be paid. However, payment
of the Sonera cash transaction bonus of 73 MSEK is paid.

In the light of the large negative result for TeliaSonera, following the
large write-downs during the previous year, the Board of Directors and
the CEO have judged that payment of the Telia Group bonus cannot be
motivated. For this reason no payment of this bonus will made within
Telia, neither to the CEO nor to the other employees included in this

For a number of years the Telia employee remuneration system has
comprised both fixed and variable salary components. As far as the
variable components are concerned, they are payable according to results
and are intended as a stimulant towards extraordinary and prioritised
achievements. The goals for these variable salary components are agreed
in advance and well documented for each individual. They comprise both
12-month financial goals and individual achievement goals, which are
regarded as essential for long-term positive profitability development.
A similar system has been used in Sonera. Evaluation of the variable
salary components for the year 2002 is not affected by the decisions
regarding the Telia Group bonus or the Sonera cash transaction bonus.
In addition to the fixed and variable salary components, there has been
a group-wide incentive plan - the Group bonus - in place in Telia since
2001. The 2002-year goal for this plan comprised the planning and
execution of the merger between Telia and Sonera, and in addition how
well this activity was carried out in parallel with the development of
Telia's business performance. The CEO of Telia evaluates whether or not
any payment will be made. The maximum payment according to plan is a
total of 30 MSEK. Within Sonera this group wide plan corresponds to a
warrants program.

The question of the Sonera cash transaction bonus has also been
evaluated. This evaluation established that during the spring 2002
Sonera made legally binding undertakings to pay a cash transaction bonus
in those cases where individuals included in the scheme were still
employed during the offer period and for a time thereafter and that the
merger between Telia and Sonera actually took place. Therefore the cash
transaction bonus, amounting to a total of 73 MSEK is paid. Telia has no
comparable cash transaction bonus.

"After the large losses we showed for 2002, it would have been
unreasonable to make the Group bonus payments", comments TeliaSonera's
President and CEO Anders Igel. " The payment of Sonera's transaction
bonus is strictly in line with contracts made when Sonera was a separate
company, but in the light of the losses we have presented I would have
preferred that no such payment would be made. It is now time to look
ahead and we are presently preparing a new long-term incentive plan to
replace the previous systems that have existed within Telia and Sonera."

For further information journalists can contact:
TeliaSonera´s Press Office, phone +46 8 713 58 30

TeliaSonera is the telecommunications leader in the Nordic region. The
Group's home market is the Nordic and Baltic regions. TeliaSonera is
listed on Stockholmsbörsen, Helsinki Exchange and NASDAQ. Pro forma
sales as per December 31, 2002 totalled 81 billion SEK and the number of
employees was 29.000.

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