New York and Stockholm- March 15, 2001 - Today Tele2 AB ("Tele2", "the Group") (Nasdaq Stock Market: TLTO) and Telia AB signed the final agreement concerning the creation and maintenance of a jointly owned UMTS (Universal Mobile Telecommunications System) network company for the next generation of mobile telephony.
The company will be named Svenska UMTS-nät AB. Bo Jacobsson, Telia, has been appointed Chairman of the Board and the position of Managing Director will be filled by Henrik Ringmar, Tele2.
In accordance with the Agreement in Principle signed on January 8, 2001, the final agreement between Tele2 and Telia gives equal access to the UMTS license awarded to Tele2. Each party obtains a 50 % ownership in the Joint Venture (J.V.). The sole objective of the J.V. is to create a UMTS network supporting full coverage of Sweden. On the service side, the competition between Tele2 and Telia remains.
Lars-Johan Jarnheimer, CEO and president of Tele2, and Marianne Nivert, CEO and president of Telia jointly stated: "It is satisfying to see that we have been able to finalize the agreement in such a short time. It ensures that we will be able to create a UMTS network based on a solid business platform. Our collaboration is not only good for Tele2 and Telia - it will also benefit our mobile customers. They will be able to use Tele2's and Telia's respective future services at lower prices and Sweden can continue to be a world leader in telecommunications."
The Chairman of the Board of Svenska UMTS-nät AB, Bo Jacobsson, is CFO of Telia. The Managing Director Henrik Ringmar is the former CEO of Tele2 Norway.
The signed final agreement is subject to approval by the Swedish Competition Authority. The agreement is valid irrespective of the outcome of Telia's appeal with the county administrative court of the PTS' decision not to award Telia a UMTS license.
Tele2 AB, (formerly NetCom AB), formed in 1993, is the leading alternative pan-European telecommunications company offering fixed and mobile telephony, data network and Internet services under the brands Tele2, Tango, Comviq and Q-GSM to approximately 12 million people in 20 countries. Tele2 operates Datametrix, which specializes in systems integration, Optimal Telecom, 3C Communications, operating public pay telephones and public Internet services; Transac, providing billing and transaction processing service; C³, offering co-branded pre-paid calling cards and IntelliNet, the price-guaranteed residential router device. The Group offers cable television services under the Kabelvision brand name and together with MTG, owns the Internet portal Everyday.com. The Company is listed on the Stockholm Stock Exchange, under TEL2A and TEL2B, and on the Nasdaq Stock Market under TLTO.
Lars-Johan Jarnheimer Telephone: + 46 8 562 640 00
President and CEO, Tele2 AB, Sweden
Andrew Best/Samantha Drover (investor relations) Telephone: + 44 20 7321 5010
Shared Value Limited
Bert Willborg (media relations) Telephone: +46 70 727 70 22
Shared Value Limited