Belgacom Buys Tele2 Unit

Belgacom announces the acquisition of Tele2 Luxembourg

June 26, 2008

1 Min Read

BRUSSELS -- Belgacom acquires Tele2 Luxembourg from Tele2 Group thereby significantly increasing its presence inLuxembourg. Tele2 Luxembourg currently provides mobile, fixed voice and DSL services in Luxembourg.

Belgacom intends to maintain its residential mobile offering under the Tango brand and further penetrate thecorporate market by leveraging its existing ICT business through Telindus Luxembourg.

Tele2 Luxembourg is a well established mobile network operator with a fixed line presence. With 238,000 mobilecustomers and 39% share of the mobile market, Tele2 is the second largest mobile player in Luxembourg. Italso serves 26,000 fixed voice and 10,000 broadband customers in Luxembourg. As part of the transaction,Belgacom also acquires Tele2’s Liechtenstein fixed and mobile operations.

Belgacom is acquiring all shares of Tele2 Luxembourg for EUR 207 million on a debt and cash free basis. GivenBelgacom’s operations in Belgium and its existing presence in Luxembourg, it is confident to achieve synergiesof at least EUR 25 million. Tele2 Luxembourg reported EUR 31 million EBITDA in 2007, and EUR 6.15 million forthe first quarter of 2008.

This transaction is subject to relevant approvals of the appropriate antitrust authorities.

Belgacom SA (Euronext: BELG)

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