Pursuant to the provisions of the Ljubljana Stock Exchange Rules and the legislation in force, Telekom Slovenije, d.d. is publishing the following announcement:

At its 20th regular meeting held on Wednesday, 20 August 2014, the Supervisory Board of Telekom Slovenije, d.d. discussed the Unaudited Business Report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for the period from January to June 2014.

Despite the continued decline in revenues from traditional voice telephony and lower revenues from mobile users due to the migration to new, more affordable packages for subscribers, the Telekom Slovenije Group’s net sales revenue during the first half of 2014 was EUR 381.6 million, which was at the level achieved in the same period last year. The Telekom Slovenije Group’s net profit amounted to almost EUR 31 million, which is again at the level comparable to the same period in 2013. The Group’s operating revenues were EUR 384.9 million; down 3% or EUR 10.8 million on the first half of 2013 due to a EUR 10.2 million decline in other operating revenues (the latter were higher during the first half of 2013 mainly due to settlements in Macedonia). EBITDA reached EUR 111.2 million or 29.1% of net sales revenue in the first six months, and the net financial debt was at EUR 437 million on 30 June 2014. The Telekom Slovenije Group recorded a growth of TV connections as well as of mobile users and fixed broadband connections.

The CAPEX in the Telekom Slovenije Group in the first half was at EUR 101.1 million, with the main part of the investments earmarked for the construction and upgrade of the networks, particularly for implementing 3G and 4G mobile technologies, local loop shortening, and an upgrade of local copper and optical networks for the purpose of broadband internet access.

For the 2014, the Telekom Slovenije Group plans a net profit of EUR 63 million, EBITDA of up to EUR 212 million and the CAPEX of up to EUR 170 million.

This announcement will be also available on the company website (www.telekom.si) for a period of at least 5 years.