TDC Buys Dotcom in Sweden

COPENHAGEN -- TDC buys Dotcom Solutions AB, an important Swedish provider of LAN infrastructure to companies, for a total price of DKK 242m on a cash and debt free basis.

Dotcom strengthens TDC's position in the rapidly expanding market for IP communications solutions as well as complementing and supporting TDC's service towards Swedish and pan-Nordic corporate customers' with a need for IP/LAN solutions.

Dotcom's revenues amounted to DKK 704m[1] in 2004, earnings before interest, taxes, depreciation and amortization (EBITDA) was DKK 29m and the result before financial items was DKK 21m. The company had 550 employees by the end of 2004.

TDC expects the acquisition to have a positive impact on TDC's net revenues and earnings in 2005 and onwards.

"The acquisition of Dotcom will strengthen our position in the fast growing market for IP-based communications solutions in the Swedish corporate market as well as in the Nordic region. Customers increasingly demand integrated IP-based communications solutions and TDC's infrastructure and service offering will benefit our current and future customers," says Martin Lippert, Executive Vice President of TDC Business.

The acquisition of Dotcom AB is subject to approval by the Swedish competition authorities.

TDC A/S