Dec 8, 2004 10:45 AM CET
New York and Stockholm – Tele2 AB, (“Tele2”), (Nasdaq Stock Market: TLTOA and TLTOB and Stockholmsbörsen: TEL2A and TEL2B), the leading alternative pan-European telecommunications company, today announced that following the necessary approvals from the Austrian anti-trust authorities, it has completed the acquisition of UTA, the leading Austrian alternative telecommunications operator.
Tele2 has acquired UTA for MEUR 213 on a debt-free basis with consideration consisting of cash and assumed debt. This acquisition allows Tele2 to cut its costs significantly in Austria, with cost synergies anticipated at MEUR 30 on an annualized basis as of 2005. Integration costs are estimated to amount to MEUR 30. UTA will be included in Tele2’s results from January 1, 2005. Lars-Johan Jarnheimer, CEO of Tele2 said; “We are very pleased that the acquisition of UTA has received the necessary approvals from the Austrian authorities. Austria’s consumers and businesses will benefit from this acquisition, through the emergence of a bigger and stronger competitor to the incumbent, providing them with high quality telecom services at low prices.” CONTACTS Lars-Johan Jarnheimer, Telephone: + 46 8 562 640 00 President and CEO, Tele2 AB Håkan Zadler, Telephone: + 46 8 562 640 00 CFO, Tele2 AB Dwayne Taylor, Telephone: + 44 20 7321 5038 Lena Krauss, Telephone: + 46 8 562 000 45 Investor enquiries Visit us at our homepage: http://www.Tele2.com