NetCom announces the acquisition of a cellular operation in Estonia

NETCOM SYSTEMS AB ANNOUNCES THE ACQUISITION OF A CELLULAR OPERATION IN ESTONIA Acquisition cost of $55 million 29,805 gross cellular subscribers New York and Stockholm - September 14, 1998 - NetCom Systems AB ("NetCom') (NASDAQ National Market Systems : NECSY), the leading alternative provider of telecommunication services in Scandinavia, today announced the acquisition of an affiliate company, Millicom International Cellular's ("MIC's") 48.0% interest in the cellular operation Ritabell of Estonia ("Ritabell"), and a Memorandum of Understanding ("MOU") between the two companies to acquire MIC's 24.5% shareholding interest in Comliet UAB of Lithuania ("Comliet") and 35.8% interest in Mobile Telecommunications of Lithuania ("Bité") subject to referral to the clauses under the existing shareholders agreement, including rights of first offer. NetCom, has agreed a $55.0 million aggregate purchase price for MIC's interest in Ritabell of Estonia and were advised by Goldman Sachs and Co.. Ritabell launched commercial service in April 1997 and as of June 30, 1998 reported approximately 29,805 gross cellular subscribers, total revenues of $5.9 million and EBITDA of $0.7 million. The license award covers a population under license of approximately 1.5 million people Anders Björkman, NetCom's President and CEO comments, "The market for telecommunication and Internet services in the Baltic region offers significant opportunities for synergies with NetCom's existing operations in Scandinavia. NetCom will utilize its considerable expertise as the most cost effective and innovative operator to build on its cellular platform in the Baltics to launch its integrated services and realise the significant purchasing power benefits of the combined operations. This will provide the Group with substantial opportunities for future growth." NetCom Systems AB was founded in 1993 and is the leading alternative provider of telecommunications services in Scandinavia. The group is engaged in the GSM cellular-telecommunications industry, operating through its subsidiary company, Comviq, in Sweden and its listed affiliate, NetCom ASA, in Norway. In the business areas of public telecommunications, data communications services and Internet, the group operates through its subsidiaries Tele2, in Sweden, Tele2 A/S in Denmark and Tele2 Norge AS in Norway. The group also operates in the cable-TV service sector. The Company is listed both on Stockholm Stock Exchange under the symbols NCOMA and NCOMB and on the Nasdaq Stock Market under the symbol NECSY. CONTACTS Anders Björkman Telephone: +46 8 562 640 00 President and CEO NetCom Systems A.B.,Sweden Jörgen Latte Telephone: +46 8 562 640 00 CFO NetCom Systems A.B.,Sweden Samantha Drover Telephone: +44 171 408 0020 Director of Investor Relations ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/09/14/19980914BIT00210/980914_e.doc http://www.bit.se/bitonline/1998/09/14/19980914BIT00210/980914_e.pdf