British Petroleum Selects Telenor Satellite Services to Provide Global Communications; Agreement Supports BP's Modernization Program to Improve Operational Efficiency, Reduce Business Costs, and Increase Employee Morale.

OSLO, Norway & ROCKVILLE, Md. -- Pact with Telenor Potentially Includes BP's Entire Fleet of Ocean-Going Vessels and 10-15 Offshore Rigs and Floating, Production, Storage and Operations Units

Telenor Satellite Services, a subsidiary of Telenor of Norway (Oslo Stock Exchange: TEL and NASDAQ: TELN), today announced the signing of a three-year communications agreement with British Petroleum (BP) for global broadband services over satellite.

The two-part agreement, including Telenor land-based and Sealink at-sea broadband communications services, is one of the largest of its kind in terms of numbers of sites, vessels and systems included.

The contract establishes the terms and conditions for upgrading the communications systems of ships and production facilities, as determined by BP, and has the potential of providing cost-efficient and highly reliable very small aperture terminal (VSAT) equipment and services to BP's entire fleet, which will surpass 80 deep sea vessels by the end of 2006, and several offshore rigs and land-based production facilities. Approximately 20 vessels are slated to have Telenor's Sealink services by the end of 2006.

The pact with Telenor is part of BP's modernization and fleet expansion program. As part of this program, BP is providing all of the company's vessels and production facilities with state-of-the-art, always-on voice and data communications for business operations as well as for crew morale and welfare.

"The size and scope of BP's global operations demands robust and reliable communications and we are very pleased that they have found that Telenor's broadband satellite offerings meet their needs," said Morten Tengs, chief executive officer of Telenor Satellite Services. "Telenor Satellite Services is focused on helping BP get the best value for their communications investment by providing its vessels and facilities some of the most advanced communications systems and services available."

Incorporating a variety of global satellite communications technologies, satellite systems, and commercially available equipment, Telenor will deliver a wide range of broadband solutions that operate using fixed installation and transportable very small aperture terminal (VSAT) equipment for BP's ships and facilities at speeds up to 2 megabits per second and beyond.

Telenor will use its teleport facilities in Norway and the United States to support this global communications agreement with British Petroleum.

Telenor is one of the world's largest providers of mobile broadband services on land and at sea, supporting more than 2,000 land-based VSAT sites and operating on over 500 ships around the world.