RESULTS FOR THE PERIOD ENDED DECEMBER 31, 2010

All data includes the full consolidation of Honduras from July 1, 2010.  Quarterly historical data has been restated for the full consolidation of Honduras.

Q4 Highlights

            Organic local currency revenues up 10% versus Q4 09
            Reported revenues up 10% to $1,069 million (Q4 09: $972 million)
            EBITDA up 9% to $497 million (Q4 09: $458 million)
            EBITDA margin of 46.5% (-0.6 percentage points versus Q4 09)
            Mobile customers up 14% versus Q4 09, bringing total customers to 38.6 million
            Basic earnings per common share* of $1.47 (Q4 09: $4.18)
            Normalized earnings per common share** of $1.59 (FY 09: $1.52)
            Free cash flow of $227 million (Q4 09: $252 million)

FY 2010 key figures 

            Organic constant currency revenues up 11.2% versus FY 09
            Reported revenues up 16% to $3,920 million (FY 09: $3,373 million)**** 
            EBITDA up 19% to $1,841 million (FY 09: $1,545 million) *****
            Basic earnings per common share* of $15.27 (FY 09: $7.84)
            Normalized earnings per common share** of $5.61 (FY 09: $4.88)
            Free cash flow of $785 million (FY 09: $456 million)
            Dividend per share of $1.80 proposed for 2010***
 
*              Includes discontinued operations
**           Excludes one-off events occurring in 2009 and 2010, mainly the disposal of Asian assets in 2009 and the revaluation of Honduras in 2010
***         Subject to AGM approval
****       FY revenues including the consolidation of Honduras for the full year, up 13% to $4,018 million vs. $3,571 million for FY 09, on a comparable basis
*****    FY EBITDA including the consolidation of Honduras for the full year, up 15% to $1,896 million vs. $1,653 million for FY 09, on a comparable basis

Mikael Grahne, President and CEO of Millicom, commented:

“The execution of Millicom’s value creation strategy continues to deliver good results, with close to $1.1 billion of revenues, $497 million of EBITDA and an EBITDA margin of 46.5% recorded in the fourth quarter.  We have produced double digit top line growth in all four quarters of 2010 with an evolving distribution of growth by region in the latter part of the year.  Growth in Africa remains strong at 12% in local currency, although it is lower than in previous quarters as market price decreases have accelerated lately.  In Central America revenue growth has improved quarter on quarter and is now reverting to positive.

“We focus on higher value customers and on ARPU stabilization as part of our broader strategy of value creation and we are achieving better quality growth as a result.  Half of all new customers in Latin America in 2010 were 3G customers delivering higher ARPU. We aim to maintain top line growth of around 10% in local currency in the medium term as we continue to invest in our brand and in our innovative and affordable products and services which are tailored to meet customers’ needs.  Value-added services (VAS) already contribute almost a quarter of our recurring revenue and collectively make up our fastest growing service.  The rapid take-up of ‘Tigo Lends You’, with a 39% penetration, is a good illustration of the power of simple value added services targeted towards specific customer groups. 

“We have also made further progress in the fourth quarter with a number of our strategic objectives.  In the area of asset optimization, we were pleased to announce two additional tower deals with Helios Towers Africa in December.  Almost two thirds of our towers in Africa should be outsourced by the end of 2011, creating over $400 million of value through cash and equity and expected future cost savings and allowing us to focus on areas of real differentiation from our competitors. 

“To optimize our balance sheet, we redeemed our 10% corporate bond in full on December 1, following the raising of $450 million of debt by our operation in El Salvador in September.  We are now in a position where 100% of our debt is at operating level which reduces our net financing costs, improves our tax efficiency and mitigates country risk.

“During 2010 we returned close to $1 billion to our shareholders through a combination of dividends and a share buy back program.  The Board is proposing an ordinary dividend of $1.80 per share for 2010, which represents a year-on-year increase of 29%. We also intend to resume the share buy back program in 2011 and the Board has authorized a new share buy back program of up to $300 million of shares that could be executed before the next AGM in May.

“This year, as in 2010, we aim to achieve the right balance between top line growth, profitability and cash flow generation.  We expect the EBITDA margin to be in the mid 40s and operating free cash flow to be in the mid teens as a percentage of revenues for 2011. We expect capex in 2011 to exceed $800 million, excluding new spectrum expenditure, as we roll out 3G in Africa and add capacity in Latin America.”

Note: For tabular financial information and the full text of the statement, please refer to the attached PDF or the Millicom website: www.millicom.com

Conference call details

A conference call to discuss the results will be held at 14.00 London / 15.00 Stockholm / 09.00 New York, on Wednesday, February 9, 2011.  The dial-in numbers are: +44 (0)20 7806 1951, +46 (0)8 5352 6408 or +1 212 444 0412 and the pass code is 6508784#.

A live audio stream of the conference call can also be accessed at www.millicom.com.  Please dial in / log on 5 minutes prior to the start of the conference call to allow time for registration.

Slides to accompany the conference call will be available at www.millicom.com 30 minutes prior to the start of the call.

A recording of the conference call will be available for 7 days after the conference call, commencing approximately 30 minutes after the live call has finished, on: +44 (0)20 7111 1244 / +46 (0)8 5051 3897 or +1 347 366 9565, access code: 6508784#.

CONTACTS

Francois-Xavier Roger  
Chief Financial Officer
Telephone: +352 27 759 327

Emily Hunt 
Investor Relations
Telephone: +44 (0)7779 018 539

Visit our web site at http://www.millicom.com

Millicom International Cellular S.A. is a global telecommunications group with mobile telephony operations in 14 countries in Latin America, Africa and Asia. It also operates various combinations of fixed telephony, cable and broadband businesses in five countries in Central America. The Group’s mobile operations have a combined population under license of approximately 266 million people.

This press release may contain certain “forward-looking statements” with respect to Millicom’s expectations and plans, strategy, management’s objectives, future performance, costs, revenues, earnings and other trend information.  It is important to note that Millicom’s actual results in the future could differ materially from those anticipated in forward-looking statements depending on various important factors. Please refer to the documents that Millicom has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Millicom’s most recent annual report on Form 20-F, for a discussion of certain of these factors.

All forward-looking statements in this press release are based on information available to Millicom on the date hereof. All written or oral forward-looking statements attributable to Millicom International Cellular S.A., any Millicom International Cellular S.A. employees or representatives acting on Millicom’s behalf are expressly qualified in their entirety by the factors referred to above. Millicom does not intend to update these forward-looking statements.