TELE2 SELLS TELE2 BENELUX TO VERSATEL AND COMMITS TO SUBSCRIBE FOR UP TO EUR 255 MILLION VERSATEL EQUITY ISSUE

Stockholm - Further to the joint announcement by Tele2 AB (Tele2) and Versatel Telecom International N.V. (Versatel) by press release dated 16 August 2006, Tele2 announces that it agreed with Versatel on the sale and transfer of all shares in the capital of Tele2 Netherlands B.V. and Tele2 Belgium N.V for the aggregate purchase price of EUR 200,000,000 (on a cash and debt free basis and subject to certain adjustments). Tele2 and Versatel have obtained independent financial advice in determining the value of Tele2 Netherlands B.V. and Tele2 Belgium N.V.
 
Versatel intends to issue new shares (the Offering) whereby eligible Versatel shareholders are entitled to participate pro rata to their existing shareholdings, for purposes of financing the acquisition of Tele2 Netherlands B.V. and Tele2 Belgium N.V. Tele2 Finance B.V. (Tele2 Finance), a wholly owned subsidiary of Tele2 holding 80,3% of all Versatel shares presently issued and all of Versatel's convertible bonds due 2011, committed to underwrite the complete Offering generating gross proceeds for Versatel of EUR 255 million.
 
Today, Versatel convenes an extraordinary shareholders meeting to be held on 12 February 2007, inter alia, for purposes of discussing and voting on proposals to approve the acquisition and the Offering. Further details about the acquisition of Tele2 Netherlands B.V. and Tele2 Belgium N.V and the proposed Offering are provided as part of and together with the convocation of the extraordinary shareholders meeting of Versatel and will be made available, subject to certain restrictions, on Versatel's website www.versatel.com.
 
 
Further information can be obtained from:
 
Lars-Johan Jarnheimer Telephone:  +46 8 5626 4000
President and CEO, Tele2 AB
 
Lars Torstensson Telephone:                       + 46 8 5626 4000
Investor enquiries
 
Visit our web site at www.tele2.com
 
Tele2 is Europe's leading alternative telecom operator. Tele2's mission is to provide cheap and simple telecoms for everyone in Europe. Tele2 always strives to offer the market's best prices. We have 31 million customers in 22 countries. Tele2 offers fixed and mobile telephony, broadband, data network services, cable TV and content services. Ever since Jan Stenbeck founded the company in 1993, it has been a tough challenger to the former government monopolies. Tele2 has been listed on Stockholmsbörsen since 1996. In 2005 we had operating revenue of SEK 50 billion and reported a profit (EBITDA) of SEK 6.6 billion.

About Us

TELE2’S MISSION IS TO FEARLESSLY LIBERATE PEOPLE TO LIVE A MORE CONNECTED LIFE. We believe the connected life is a better life, and so our aim is to make connectivity increasingly accessible to our customers, no matter where or when they need it. Ever since Jan Stenbeck founded the company in 1993, it has been a tough challenger to the former government monopolies and other established providers. Tele2 offers mobile services, fixed broadband and telephony, data network services, content services and global IoT solutions. Every day our 17 million customers across 9 countries enjoy a fast and wireless experience through our award winning networks. Tele2 has been listed on the NASDAQ OMX Stockholm since 1996. In 2016, Tele2 had net sales of SEK 28 billion and reported an operating profit (EBITDA) of SEK 5.3 billion. For definitions of measures, please see the last pages of the Annual Report 2016. Follow @Tele2group on Twitter for the latest updates.

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