HTCC Buys Tele2 Hungary

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 Hungarian fixed telephony operations to HTCC. HTCC will pay in cash approximately MSEK 40 on a debt and cash free basis. Completion is expected following approval from the Hungarian Competition Authorities.

Tele2 has built a strong operation in Hungary. However, in line with its realignment, Tele2 has decided to exit Hungary and continue to concentrate its operations to markets where Tele2 has a stronger position and expectations of higher profitability.

At the end of May 2007, Tele2 Hungary had approximately 490 000 fixed telephony customers. In 2006 Tele2 Hungary had revenues of MSEK 374 and EBITDA of MSEK -31. The transaction will have a positive one time effect on Tele2 of approximately MSEK 20.

Tele2 AB (Nasdaq: TLTO)