GN Store Nord A/S
Company Announcement

TPSA Required to Provide EUR 1.5 million in Security in Ireland

Copenhagen, 2011-10-24 13:35 CEST -- In connection with the enforcement proceedings before the High Court Commercial in Dublin, Ireland TPSA is required to provide security in the amount of EUR 1.5 million until the court has made a decision on the enforcement of TPSA’s assets in Ireland. The next court date has been scheduled for December 15, 2011.

CFO of GN Store Nord, Anders Boyer says: “With this decision we have once again received confirmation of the legitimacy of the Arbitration Tribunal’s decision from September 2010. It confirms that courts in all member states to the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards will enforce the award from the Austrian Arbitration Tribunal from September 2010 once a decision is rendered by the Austrian courts in Vienna.”

Background
GN Store Nord continues to be involved in an arbitration case against Telekomunikacja Polska S.A. (TPSA) through its 75% share of DPTG I/S. The dispute concerns the determination of traffic volumes carried over the NSL fibre optical telecommunication system in Poland. DPTG is entitled to 14.8% of net profits from NSL during the period 1994-2009. The seat of the Arbitration Tribunal is Vienna, Austria.

The arbitration case against TPSA was initiated by DPTG in 2001 due to lack of profit sharing by TPSA. On September 3, 2010 the Arbitration Tribunal awarded DPTG approximately DKK 2.9 billion for the contract period from 1994 to mid-2004 (Phase 1). Despite the fact that the award is final and legally binding, TPSA did not pay the amount due within the 14-day deadline established by the Arbitration Tribunal, and the payment is still outstanding. Penalty interest of 6% p.a. will accrue until payment is received.  

For further information, please contact:

Mikkel Danvold
VP, IR & Communications

GN Store Nord A/S
Tel: +45 45 75 02 71