Tele2 Sells Calling Card Unit

STOCKHOLM -- Tele2 AB, ("Tele2"), (Stockholm Stock Exchange: TEL2 A and TEL2 B), Europe's leading alternative telecom operator, today announced that it has signed an agreement for the sale of C3 to Eutelia SPA in Italy.

In 2006 C3 had a revenue of MSEK 1 283 and an EBITDA of MSEK 40. The transaction will have a positive impact on cash flow but translate into a negative one time effect on Tele2's profit and loss statement of about MSEK 300-400.

Lars-Johan Jarnheimer, President and CEO of Tele2, comments: "This divestment is an additional step in our strategy to focus on our core businesses and geographies."

Tele2 AB (Nasdaq: TLTO)