Millicom Buys Colombia Movil

STOCKHOLM -- Millicom International Cellular S.A. ("Millicom") (Nasdaq Stock Market: MICC, Stockholmsborsen: MIC), today announces that it has acquired control of Colombia Movil S.A. E.S.P., the third mobile operator in Colombia, which operates under the Ola brand. Ola today has an estimated 9% market share in a country of over 43 million people.

Millicom is acquiring 21.6 million new shares of Colombia Movil, which represents a 50% plus 1 share controlling stake in the Company, for a consideration of US$125 million. Including this initial equity contribution, Millicom expects to invest a total of approximately $200 million of new equity in Colombia Movil within the next three years. Millicom's investment will be fully funded by way of new debt in another wholly owned Millicom Latin American subsidiary, so that Millicom will not be drawing down its current Corporate cash reserves for this investment.

As a result of this acquisition, Ola's founding shareholders, Empresa de Telecomunicaciones de Bogota S.A. E.S.P. and EPM Telecomunicaciones S.A. E.S.P., will retain an interest of 50% minus 1 share minority stake. Millicom will appoint four out of the seven board members and will have day-to-day management control of the business.

Millicom will treat Colombia Movil as a subsidiary and will fully consolidate the subsidiary while taking into account the 50% minus 1 share minority interest as a minority in the profit and loss.

Marc Beuls, President and CEO, commented: "The purchase of Colombia Movil doubles Millicom's population under license in our highly successful Latin American region. Colombia Movil will be the platform from which Millicom will look to introduce its 'triple A' business strategy based on 'Affordability, Accessibility and Availability', which has enabled Millicom to compete successfully across Latin America. Having previously managed a successful regional operation in Colombia for 8 years between 1994-2002, we now believe that we can build substantial value in Ola by applying our Latin American skills and experience. Following a successful implementation of our 'triple A' strategy, we would expect the business to start contributing to Millicom's EBITDA during 2007".

Millicom International Cellular SA (Nasdaq: MICC)