Full Year Report 2004: In 2004 Tele2 increased revenues by 16% to SEK 43 billion with EBITDA rising 11% to SEK 6.6 billion - Tele2

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Feb 16, 2005 6:00 AM CET

Full Year Report 2004: In 2004 Tele2 increased revenues by 16% to SEK 43 billion with EBITDA rising 11% to SEK 6.6 billion

New York and Stockholm – Wednesday, February 16, 2005 – Tele2 AB (“Tele2”, “the Group”) (Nasdaq Stock Market: TLTOA and TLTOB and Stockholmsbörsen: TEL2A and TEL2B), the leading alternative pan-European telecom operator, today announced its consolidated results for the fourth quarter and full year ended December 31, 2004.

■ Operating revenue for the full year increased by 16% to MSEK 43,033* (37,190**) ■ Profit before tax for the full year increased by 73% to MSEK 2,681 (1,546**) ■ Profit after tax for the full year amounted to MSEK 1,902 (2,396) ■ Earnings per share after tax for the full year amounted to SEK 12.86 (16.20) ■ Earnings per share excluding goodwill amortization amounted to SEK 25.72 (29.09) ■ The Board of Directors proposes a dividend of SEK 5 (3) per share, a share split and a mandatory redemption program equivalent to SEK 10 per share, totalling SEK 15 per existing share The figures shown in parenthesis correspond to the comparable periods in 2003. * Including retroactive payments of ca MSEK 300 in Southern Europe (Note 1) ** Excluding MSEK –279 for 2003 regarding adjustments in Mobile Sweden (Note 1) Lars-Johan Jarnheimer, President and CEO of Tele2 AB: “It has been a good year for Tele2, with a steady customer intake and profit before tax nearly doubling. Tele2’s strategy is to bring low priced telecoms services to all Europeans. This business model has substantial room for growth. Consistent with our strategy, we will invest in infrastructure where it lowers our costs and improves our business opportunities. 2004 was an eventful year. During the year, we successfully entered into two new countries Hungary and Ireland, acquired UTA in Austria, won a mobile license in Croatia, finished upgrading our mobile networks in Russia and launched new services in a number of countries. The cost for growing our already considerable ADSL customer base, will increase in the coming years in those countries where we see the opportunity to make money from it. In 2004, we increased our customer base by over five million to nearly 28 million customers and our revenues by 16% to SEK 43 billion. This demonstrates our ability to manage and take advantage of the growth opportunities available to us. At the same time, we maintained strong cash flows and nearly doubled our pre tax profits. The Board of Tele2 proposes an ordinary dividend of SEK 5 per share, reflecting its view that Tele2 is a growth company. Further, the secure financial position Tele2 enjoys and the balance it has achieved between growth, profitability and available cash flow, has enabled the Board to propose a share redemption program equivalent to SEK 10 per share.” CONTACTS Lars-Johan Jarnheimer, Telephone: + 46 (0)8 562 640 00 President and CEO, Tele2 AB Håkan Zadler, Telephone: + 46 (0)8 562 640 00 CFO, Tele2 AB Dwayne Taylor, Telephone: + 44 (0)20 7321 5038 Lena Krauss, Telephone: + 46 (0)8 562 000 45 Investor enquiries Visit us at our homepage: www.tele2.com

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