Tele2 AB acquires Latvian cellular operator

TELE2 AB ACQUIRES LATVIAN CELLULAR OPERATOR New York and Stockholm -October 3, 2000 - NetCom AB (Publ) ("NetCom", "the Group") (Nasdaq Stock Market: NECSB), a leading alternative pan-European provider of telecommunications and related services, today announced the entry into an agreement to acquire Baltkom GSM, the second largest mobile telecommunications company in Latvia, by its subsidiary Tele2 AB. Tele2 AB will acquire 100% of the share capital of Baltkom GSM from shareholders including Metromedia International Group (AMEX; MMG), Western Wireless International Corporation (Nasdaq: WWCA) and the European Bank for Reconstruction and Development for approximately US$277 million, including the repayment of approximately US$53 million in shareholder loans and bank debt. Completion of the transaction is conditioned inter alia upon receipt of approval of the acquisition of Baltkom GSM from the Ministry of Transport of the Republic of Latvia, which is expected to be received shortly. Baltkom GSM is the most recent entrant to the mobile telephony market in Latvia, having gained its GSM 900/1800 license from the Ministry of Transport in 1996 and it has more than 90,000 subscribers. Lars-Johan Jarnheimer, President and CEO of NetCom AB commented: "We are delighted with the acquisition of Baltkom GSM as it completes our presence across the Baltic states. Baltkom is the price leader in Latvia and has been well positioned by its previous owners for rapid development. Through Tele2's purchasing power we aim to build the network and we look forward to seeing significant development in mobile phone usage in Latvia over the coming months." NetCom, formed in 1993, is a leading alternative pan-European telecommunications company offering fixed and mobile telephony, data network and internet services under the brands Tele2, Tango Comviq and Q-GSM to over 9 million people in eighteen countries. NetCom operates Datametrix, which specializes in systems integration, Optimal Telecom, 3C Communications, operating public pay telephones and public internet services; Transac, providing billing and transaction processing services; C³, offering co-branded pre-paid calling cards and IntelliNet, the price-guaranteed residential router device. The Group also offers cable television services in Sweden, Estonia and Lithuania under the brands Kabelvision, Tele2 and C-Gates, and together with Modern Times Group, owns the internet portal The Company is listed on the Stockholm Stock Exchange, under NCOMA and NCOMB, and has ADRs listed on the Nasdaq Stock Market, under NECSB. ADRs representing NetCom's Class A shares have also been approved for listing on the Nasdaq Stock Market. Contacts: Lars-Johan Jarnheimer Telephone: + 46 8 5626 4000 President and CEO, NetCom AB Johnny Svedberg Telephone: +46 8 5626 4683 Vice President, New Markets, NetCom AB Andrew Best Telephone: + 44 (0)20 7321 5010 Shared Value Ltd, London Visit our homepage: ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download: