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May 9, 2007 7:30 AM CET

Tele2 divest Tele2 Denmark to Telenor for approximately MSEK 1,025

Stockholm - Tele2 AB, ("Tele2"), (Stockholm Stock Exchange: TEL2 A and TEL2 B), Europe's leading alternative telecom operator, today announced that it has sold its Danish operations including fixed, broadband and mobile businesses to Telenor. Telenor will pay in cash approximately MSEK 1,025. Completion is expected end of June following approval from Danish Competition Authorities.

Tele2 has built a strong operation in Denmark. However, as the market evolves and competition increases it has become evident that there is a need for a more infrastructure based approach both when it comes to broadband and mobile services. Hence, Tele2 has decided to exit Denmark and continue with the strategy to concentrate its operations to markets with expectations of higher returns.
At the end of 2006, Tele2 Denmark had according to National IT & Telecom Agency 75,000 broadband customers, 206,000 fixed telephony customer and 227,000 mobile telephony customers of which 100,000 post-paid. In 2006 the Danish business had revenues of MSEK 1,695 and EBITDA of MSEK 68. The Tele2 employees in Denmark will become part of the Telenor group in Denmark. The transaction will have a positive one time effect on Tele2 of approximately MSEK 400-500.
Lars-Johan Jarnheimer, President and CEO of Tele2, comments: "Our Danish operation has been successful. However, as competition increases and there is a need for more infrastructure based operations we have decided to hand over the baton to Telenor. This will enable Tele2 to focus on core operations with expectations of higher return."
Further information can be obtained from:
Lars-Johan Jarnheimer, President and CEO Tele2 AB, Telephone: +46 8 5626 4000
Lars Torstensson, Investor Inquiries, Telephone: +46 702 73 48 79
Tele2 is Europe's leading alternative telecom operator Tele2's mission is to provide cheap and simple telecoms for everyone in Europe. Tele2 always strives to offer the market's best prices. We have 29 million customers in 22 countries. Tele2 offers fixed and mobile telephony, broadband, data network services and cable TV. Ever since Jan Stenbeck founded the company in 1993, it has been a tough challenger to the former government monopolies and other established providers. Tele2 has been listed on OMX Nordic Exchange since 1996. In 2006 we had operating revenue of SEK 50.3 billion and we reported a operating profit (EBITDA) of SEK 5.7 billion.

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