Aug 16, 2006 8:00 AM CET
Stockholm - Further to the press release of Versatel Telecom International N.V. ("Versatel") dated 21 April 2006 and the joint announcement by Versatel and Tele2 AB ("Tele2") of 16 June 2006, Versatel and Tele2 jointly announce that they agreed in principle to combine their Dutch and Belgian operations. It is intended that the combination is effected by means of an acquisition by Versatel of the Dutch and Belgian businesses of Tele2. It is the intention to finance the acquisition by issuing new Versatel shares, whereby all existing shareholders will be entitled to participate, pro rata to their existing shareholdings. It is anticipated that this transaction will be finalized before the end of this year. More details will follow as appropriate.