Saunalahti Settles Dispute with Sonera Mobile

Finland's Saunalahti Group says that it has reached an agreement with Sonera Mobile Networks regarding a dispute relating to the termination of its Mobile Virtual Network Operator (MVNO) agreement and will cancel its action in the court of arbitration in accordance with the agreement. Saunalahti records US$1.7 million as non-recurring income for the fourth quarter from the agreement.

On 30 June 2005, Saunalahti Group obtained a loan of US$13 million from Novator One in order to finance a break-up fee paid to Sonera Mobile Networks (Saunalahti's stock exchange release on 1 July 2005). Initially, this loan was planned to be converted into a convertible capital loan included in the shareholders' equity.

Elisa Corporation has notified Saunalahti that the loan has been transferred to Elisa. Elisa and Saunalahti have today agreed that the loan in question will be converted into a capital loan defined in the Finnish Companies Act.

Posted to the site on 3rd January 2006