Based on the provisions of the Ljubljana Stock Exchange, d.d., and the Securities Market Act-1 Telekom Slovenije, d.d., is publishing the following notification:

The changes are necessary to boost the development of the sector and guarantee stable operations.

For a long time now, Telekom Slovenia has been calling attention to the unbearable situation on the Slovenian electronic communications market and, in light of the costs, to the unreasonably low prices of rival operators, to which Telekom is forced to adapt. Because of its special position, Telekom Slovenia has nevertheless been investing significant amounts into building and upgrading its networks and providing, implementing and retaining the high quality of its services, upon which alternative operators also depend. In the first quarter of the year, investments in the home market amounted to €13 million. The costs of providing services are also high. In such circumstances, the profitability and stability of operations are at risk, as is the development of the entire sector.

That is why Telekom Slovenia has decided to bring the prices of its services and investments more in line with its costs and to adapt its offer to the demands of the market. The changes will come into force on 1 September this year. There are three main changes.

The subscription fee for all packages including the SiOL TV service will be €3 higher, VAT included. The only exemption will be existing SiOL TV subscribers who are not also subscribed to internet, for whom the prices will remain unchanged until 31 December. A change in SiOL TV prices is another in the series of measures aimed at the consolidation of prices on the Slovenian broadband access market, and it again represents a harmonizing of the prices in line with the costs of the services.

The second change is the additional digital access charge for SiOL and CATV service subscribers on fiber optics. Digital access on the fiber optics will cost €7 monthly. Subscribers to packages without internet will get a €4 discount on the price of digital access, while subscribers to the Trio service with Standard or Mega program packages will get a €3 discount. As elsewhere in the world, the new prices for fiber optics reflect high investments in modern fiber optics. The advantages that users with optic fibers enjoy include above all high transfer speeds and thus the latest multimedia services, which results in the best user experience (such as the possibility to watch HD content on SiOL TV).

On 1 September, Telekom Slovenia will once more introduce packages that will not include internet services. It will launch six packages, with the prices ranging from €26 to €37, which means that the prices will also change for those who have subscribed to such packages in the past. The changes are in lines with those already mentioned.

Users Also Get Numerous Benefits:
SiOL users will all the time also enjoy a number of benefits. SiOL TV users can watch three free-of-charge films every two weeks, while the Mega package is the only package on the market also offering free content: ambient channels, premium games, free films, series, concerts (Videomania and SiOL concerts). In September, Telekom will add some new TV channels for which there have been numerous requests; 3Sat and Duna to the basic package, as well as Mezzo, Tiji, MCM POP Playhouse Disney (to the Mega package).

The packages with internet services provide users free Panda anti-virus protection and free-of-charge technical support 24/7.

Soon users will be able to subscribe to extras, regardless of the program package they have. This means that in the autumn users with SiOL’s basic or standard packages will also be able to subscribe to HBO, Explosive or HD content (if they have fiber optics).

Loyal users can enter the Loyalty Program after only 6 months instead of 18 months as in the past. The Loyalty Program offers purchases at affordable prices as well as monthly installments and a discount on the basic subscription.

New service and package prices together with comparisons and other changes are in the second attachment, and are also available on www.telekom.si and www.siol.net.

Report will be published also on the company's web site www.telekom.si, at least 5 years from the date of the publication.