The acquisition of ritabell becomes effective in the fourth quarter

[REMOVED GRAPHICS] FOR IMMEDIATE RELEASE Thursday, November 5, 1998 NETCOM AB ANNOUNCES THE ACQUISITION OF RITABELL IN ESTONIA BECOMES EFFECTIVE IN THE FOURTH QUARTER New York and Stockholm - November 18, 1998 - NetCom Systems A.B. ("NetCom") (Nasdaq : NECSY), today announced that the acquisition of a 48% interest in Ritabell of Estonia ("Ritabell") from Millicom International Cellular SA ("MIC") will be consolidated in NetCom's fourth quarter of 1998 financial results, effective from October 1, 1998. Ritabell is a cellular operation in Estonia which at September 30, 1998 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. The acquisition cost of $50 million reflects a $5 million adjustment to reflect debt incurred by Ritabell at the time the transaction became effective. In October, NetCom also announced that a Memorandum of Understanding ("MOU") had been reached with MIC to purchase MIC's 24.5% interest in Comliet UAB of Lithuania ("Comliet") and its 35.8% interest in Bité GSM ("Bité"), subject to referral to clauses under the existing shareholders agreement, including rights of first offer. For further information, please call: NetCom Media Service: +46 8 5626 4626 (24 hour service) NetCom is a leading telecommunications company in Scandinavia. The company was formed in 1993. It is engaged in the GSM cellular business with the brand names Comviq and Tele2Mobil in Sweden, through its listed affiliate NetCom ASA in Norway and through the affiliate Ritabel 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. NätTeknik and Datametrix are specialising in systems integration. NetCom also operates Kabelvision, a Swedish cable-TV services company. NetCom is listed on the Stockholm Stock Exchange (NCOMA, NCOMB) and on the Nasdaq Stock Market (NECSY). ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/11/05/19981105BIT00550/bit0001.pdf http://www.bit.se/bitonline/1998/11/05/19981105BIT00550/bit0002.doc