Transmode has been a longstandingsupplier to Telenor of CWDM Metro Access networks since 2005 and this new MetroCore contract was won against stiff competition from other leading opticalnetworking vendors.  This additional contract represents a significantexpansion in Transmode’s business with Telenor and is a strong endorsement ofthe companies’ ongoing Metro Access contract.

“It is essential for us to have acost-effective, flexible and scalable solution to meet new multiservice demandsand deliver the best quality services to our customers,” said Bjorn NetlandDirector Broadband Networks Telenor. “We chose Transmode from several othersuppliers because it offered us a flexible and reliable metro DWDM solution atthe lowest total cost of ownership.

“DWDM networks with integrated serviceaggregation are an ideal way to simplify network operations and to increase thecapacity and reliability of metro networks. Being able to easily managereconfigurable optical networks over time means we can future proof our entirenetwork.”

Telenor is currently offering itscustomers 1Gbit/s Ethernet services and will now be able to upgrade to 10Gbit/srapidly. The company intends to offer HDTV services over the network and willbe able to provide customers with more IP based services. Bjorn Netland added,“My main aim is to ensure we can meet the future requirements of our customerswithout adding large operational costs. I need to ensure the lowest possibletotal cost of ownership of the network and maximize flexibility.”

The Transmode TM-Series providesoperators with a highly flexible and scalable WDM platform for applicationsranging from regional and national networks to metro and campus networks. Theplatform includes industry-leading functionality such as integrated ROADM andLayer 2 Ethernet including Transmode’s unique Intelligent WDM (iWDM™)technology.

Björn Andersson, Transmode’s VP Sales,commented, “The Telenor decision to deploy Transmode equipment is yet anotherdemonstration of our ability to supply to Tier One service providers and enablesignificant increases in capacity cost-effectively. We are delighted tocontinue our well-established working relationship with Telenor and win anotherglobal deal.”

About Telenor

Headquartered in Oslo, Norway, Telenoris an international provider of high quality telecommunications, data and mediacommunications services. Telenor is one of Norway’s largest companies withrevenues in 2009 of approx NOK 107 billion (including Kyivstar) and a workforce of more than 40,300 domestically and abroad. Telenor is listed on theOslo Stock Exchange (TEL).

For more information about the TelenorGroup, visit www.telenorgroup.com

About Transmode

Transmode is a leading provider ofoptical networking solutions for transport of data, voice and video traffic,based on CWDM and DWDM technology (Coarse/Dense Wavelength DivisionMultiplexing).   ??Transmode's unique Intelligent WDM (iWDM™) approach haslead to widespread deployment of over 10000 systems in a customer base consistingof more than 250 fixed and mobile network operators, service providers, largeenterprises and public institutions across Europe, the Americas and Asia. ?

Transmode's comprehensive productportfolio and strong global organization enable our customers to grow thecapacity and to improve service level of their regional, metro and metro accessnetworks, on a cost-efficient basis without compromising on functionality.

For additional information aboutTransmode, please visit www.transmode.com

Contact

Ola Elmeland

Vice President Marketing &Communications                             

Transmode Systems AB

Telephone: +46 8 506 882 71

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