The Parties of Lattelekom Arbitration Have Stated Their Claims.

Business & High-Tech Editors

HELSINKI, Finland--(BUSINESS WIRE)--May 29, 2002

Tilts Communications A/S a wholly owned Danish subsidiary of Sonera Corporation and the Republic of Latvia have filed their main claims in the ICC Arbitration which is continuing between Tilts, the Republic of Latvia, Lattelekom SIA, Cable and Wireless plc and Sonera Corporation.

The Arbitration, which was commenced under the Arbitration Rules of the International Chamber of Commerce, arises out of an Umbrella Agreement entered into in January 1994 between Lattelekom, Tilts and the Republic of Latvia. Lattelekom is the exclusive provider of fixed line telecommunications services in the Republic of Latvia. Its shareholders are Tilts (49%) and the Republic of Latvia (51%).

Tilts claims a total of approx. LVL 87.6 million (MEUR 152) from the Republic of Latvia as compensation for losses sustained as a consequence of the shortening by the Republic of Latvia of the twenty years' exclusivity period granted to Lattelekom as the provider of fixed line telecommunications services in the Republic of Latvia, and failure by the Republic of Latvia to ensure that telecommunications tariffs were fixed at contractually agreed levels.

The Republic of Latvia has quantified counterclaims of a total of approx. LVL 599,499 million (MEUR 1,040) and reserved its right to make further claims against Tilts. These claims arise principally from the alleged failure by Tilts to digitalise the fixed line network in Latvia within the time frame specified in the Umbrella Agreement, alleged failure to procure the transfer of Sonera's shares in Latvijas Mobilais Telefons SIA (LMT) to Lattelekom, alleged failure to make certain inward investments in Latvia and other alleged breaches by Tilts of its obligations under the Umbrella Agreement.

Tilts considers that it has valid claims against the Republic of Latvia and will pursue these. It however believes that the counterclaims asserted by the Republic of Latvia are unfounded and it will vigorously defend these. The Arbitral Tribunal will rule on the claims in due course.

Forward-Looking Statements

This press release contains forward-looking statements regarding the timing of certain regulatory approvals relating to the planned business combination between Telia and Sonera and the timing of Telia's exchange offer to Sonera's shareholders and warrantholders. Statements that are not strictly historical statements, including statements about Telia's and Sonera's beliefs and expectations, constitute forward-looking statements. By their nature, forward-looking statements are subject to risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.

Telia and Sonera are under no obligation to, and expressly disclaim such obligation to, update or alter their forward-looking statements, whether as a result of new information, future events or otherwise.

Cautionary Disclaimer/Legend

The Combination of Sonera and Telia will be implemented through an exchange offer made by Telia to all shareholders of Sonera. This press release is neither an offer to purchase nor a solicitation of an offer to sell shares of Sonera. Any offer in the United States will only be made through a prospectus which is part of a registration statement on Form F-4 filed with the U.S. Securities and Exchange Commission (the "SEC"). Sonera shareholders who are U.S. persons or are located in the United States are urged to carefully review the registration statement on Form F-4 and the prospectus included therein, the prospectus, the Schedule TO and other documents relating to the offer that will be filed by Telia with the SEC because these documents contain important information relating to the offer. You are also urged to read the related solicitation/recommendation statement on Schedule 14D-9 that will be filed with the SEC by Sonera regarding the offer. You may obtain a free copy of these documents after they are filed with the SEC and other documents filed by Telia and Sonera with the SEC at the SEC's web site at www.sec.gov. Once such documents are filed with the SEC, you will also be able to inspect and copy the registration statement on Form F-4, as well as any documents incorporated by reference therein, the Schedule TO and the Schedule 14D-9 at the public reference room maintained by the SEC at 450 Fifth Street, NW, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. These documents may also be obtained free of charge by contacting Telia AB, Investor Relations, SE-12386 Farsta, Sweden. Attention: External Communications and Investor Relations (tel: [phone], or Sonera, Teollisuuskatu 15, P.O. Box 106, FIN-00051 SONERA, Finland. Attention: Investor Relations (tel: [phone]). YOU SHOULD READ THE PROSPECTUS AND THE SCHEDULE 14D-9 CAREFULLY BEFORE MAKING A DECISION CONCERNING THE OFFER.

Sonera Corporation (HEX: SRA, NASDAQ: SNRA) is a leading provider of mobile and advanced telecommunications services. Sonera is growing as an operator, as well as a provider of transaction and content services in Finland and in selected international markets. The company also offers advanced data solutions to businesses, and fixed network voice services in Finland and neighbouring markets. In 2001, Sonera's revenues totaled EUR 2.2 billion, and profit before extraordinary items and taxes was EUR 0.45 billion. Sonera employs about 9 000 people.