Netcom A.B. announces the purchase of an additional 46.8% interest in Ritabell of Estonia

NETCOM A.B. ANNOUNCES THE PURCHASE OF AN ADDITIONAL 46.8% INTEREST IN RITABELL OF ESTONIA * 35,000 Gross Cellular Subscribers as of September 30, 1998 * Population Under License of 1.5 Million * Aggregate Consideration of $58.6 Million Stockholm and New York - January 29, 1999 - NetCom A.B. ("NetCom") (Nasdaq : NECSY), the leading alternative provider of telecommunication services in Scandinavia, today announced the purchase of an additional 46.8% interest in Ritabell of Estonia ("Ritabell") and interests in a number of Internet and cable television operations in the Baltic Region. The purchase agreement was signed with Levicom International Holdings BV, which wholly owns the companies, AS Levicom Cellular ("CellCo") and OÜ Levicom Broadband ("BroadCo"). At completion, NetCom acquired 90% of the share capital of CellCo which holds the 52% interest in the share capital of Ritabell and 100% of a DCS 1800 license in Lithuania. In addition, NetCom acquired 20% of the capital of BroadCo which encompasses Internet activities in Estonia and a number of cable television operations in Estonia and Lithuania. NetCom's percentage interest in Ritabell will increase from 48% to 94.8%, with the additional 46.8% interest in Ritabell being held through NetCom's interest in CellCo. The aggregate consideration of $58.6 million is payable in tranches on an annual basis, with the first payment of $28.6 million due on completion. The operation in Estonia covers a population under license of approximately 1.5 million people and the DCS 1800 license in Lithuania covers a population under license of approximately 3.7 million. In September 1998, NetCom announced the purchase of a 48% interest in Ritabell from Millicom International Cellular SA for a purchase price of $50 million. As of September 30, 1998, Ritabell reported 35,032 gross cellular subscribers. Revenues for the nine months ended September 30, 1998 were $4.7 million and operating profit before depreciation and amortization totaled $0.5 million. NetCom plans to release audited financial results for the twelve months ended December 31, 1998 on February 25, 1999. Anders Björkman, NetCom's President and CEO commented, "NetCom's increased percentage interest in Ritabell will provide for full operational control which will create opportunities for synergies with NetCom's existing operations in Scandinavia. The collaboration will also provide a platform for the future expansion of our Cable, Internet and telephony operations in the Baltic region. We are very positive about the potential to expand our integrated operations in the Baltic Region and the future growth opportunities this will create". CONTACTS Anders Björkman Telephone: + 46 8 562 640 00 President and CEO, NetCom AB, Sweden Jörgen Latte Telephone: + 46 8 562 640 00 CFO, NetCom AB, Sweden Samantha Drover Telephone: + 44 171 408 0020 Director of Investor Relations Internet: www.netcom.se NetCom AB is a leading telecommunications company in Scandinavia. The Company was formed in 1993. It is engaged in the GSM cellular business operating using the brand names of Comviq and Tele2Mobil in Sweden, NetCom ASA in Norway and through affiliate Ritabell in Estonia. In the areas of public telecommunications, data communication services and Internet, NetCom operates Tele2 in Sweden, Tele2 A/S in Denmark and Tele2 Norge AS in Norway. NetCom also operates, NätTeknik and Datametrix, specializing in systems integration and Kabelvision, a Swedish cable TV services company. NetCom is listed both on the Stockholm Stock Exchange under the symbols NCOMA and NCOMB and on the Nasdaq Stock Market under the NECSY. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/01/29/19990129BIT00130/bit0001.doc