Tele2 Puts Brakes on Baltics

STOCKHOLM -- Tele2 AB, (``Tele2''), (Stockholmsborsen:TEL2A) and (Stockholmsborsen:TEL2B), the leading alternative pan-European telecommunications company, today announced that, based on the current regulatory environment in Estonia, Latvia and Lithuania, it has decided to stop any further investments in its fixed line operations in these countries.

Tele2 intends to stop product development and marketing of fixed telephony in Estonia, Latvia and Lithuania. Tele2 will continue servicing its existing customers, but will not take on new customers. Tele2 will continue to offer mobile telephony as one of the leading operators in these countries.

Lars-Johan Jarnheimer, CEO and President of Tele2 commented, "We regret that, given the current regulatory environment in Estonia, Latvia and Lithuania, we do not, at this point, see any alternative other than to stop further investments in our fixed line operations. The implementation of the new EU legal regulatory framework is very late and the necessary work required to be done by the local regulatory authorities to ensure an open and competitive market has barely started. We are not able, for example, to launch broadband in these markets. Instead, we will focus on continuing to offer our successful mobile products and services to our customers in Estonia, Latvia and Lithuania."

Tele2 AB