TDC Appeals Ruling of October 19, 2004, in Talkline Goodwill Valuation Tax Case

TDC Appeals Ruling of October 19, 2004, in Talkline Goodwill
Valuation Tax Case 


COPENHAGEN, Denmark, Nov. 26  /PRNewswire-FirstCall/ -- TDC appeals the ruling
from the National Assessment Council of October 19, 2004, regarding the
valuation of goodwill in Talkline. The ruling of The National Assessment
Council values this goodwill at DKK 3.6bn, which is significantly less than the
DKK 6.3bn according to TDC's opinion.

Background

On August 19, 2003, the National Assessment Council approved that the goodwill
created in the restructuring of Talkline in 2000 was tax deductible under
Danish joint taxation.

On October 19, 2004, the National Assessment Council determined the market
value of this goodwill to be DKK 3.6bn, compared with the TDC valuation of DKK
6.3bn.

TDC appeals the ruling from the National Assessment Council TDC is of the
opinion that the valuation from the National Assessment Council in a number of
areas has been made on the background of too negative assumptions, assessments
and expectations. Furthermore TDC assesses that a positive result could be
expected from a ruling in the Danish National Tax Tribunal. Therefore TDC today
has decided to appeal the ruling from the National Assessment Council. A
decision in the appeal case can take up to two years.

The impact of the decision on TDC's results for 2004 The decision of the
National Assessment Council results in an additional tax payment for TDC of
approx. DKK 0.4bn to be paid during 1H 2004. TDC's appeal does not have a
delaying effect on this payment.

As mentioned in the Annual Report 2003 the accounting of goodwill in Talkline
is based on an accounting estimate and hence subject to some uncertainty.
Because of this, and in accordance with TDC's accounting principles, a
provision was made to cover this uncertainty. The provisions more than cover
the mentioned tax payment why the decision will not have a negative impact on
TDC's results for 2004.

For further information please contact TDC Investor Relations at [phone].

TDC is a Danish-based provider of communications solutions with significant
presence in selected markets in Northern and Central Europe. TDC is organized
as six main business lines; TDC Solutions, TDC Mobile International, TDC
Switzerland, TDC Cable TV, TDC Directories and TDC Services. TDC was privatized
in 1994 and the shares are held by individual and institutional shareowners
primarily in Europe and USA.

   TDC A/S, Noerregade 21
   0900 Copenhagen C
   DK-Denmark
   http://www.tdc.com/

DATASOURCE: TDC A/S



CONTACT:  TDC Investor Relations, [phone] 



Web site:  http://www.tdc.com/ 

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