Song Networks acquires Sonera's Swedish data and telephony operations.

Song Networks acquires Sonera's Swedish data and telephony operations. Tele1 Europe Holding AB's (NASDAQ: TEUR, Stockholm Stock Exchange: TEUR) wholly-owned subsidiary Song Networks AB, (the former Tele1 Europe AB), has acquired parts of Sonera's data and telephony operations in Sweden. The purchase price is approximately SEK 200million, to be paid in cash. The agreement has been signed by both parties and is expected to be completed in the middle of May 2001. The agreement means that Song Networks' activities based on services on the fixed network will take over around 1000 customers. The acquired operations had sales of around SEK 190million during 2000, of which around two thirds was data and internet services. The acquisition does not include Sonera's Swedish carrier operations or the Geddeholm call-center. Song Networks will take over around 60 employees from Sonera's Swedish operations. The acquisition is to be consolidated from 1 May 2001. The acquisition is estimated to initially lead to a poorer EBITDA and gross margin during the period because Tele1 Europe Holding will transfer customers to its own network and replace leased-line contracts. The acquisition is however not expected to affect Tele1 Europe Holdings' aim of reaching break-even on adjusted EBITDA during Q2 2002. Tele1 Europe Holding's business plan will still be fully financed after the acquisition. Further information, please contact: Song Networks AB Tele1 Europe Holding AB Pelle Hjortblad, Managing Director Ivar Strömberg,CEO Tel: +46 (0)8 5631 0110 Tel: +46 (0)8 5631 0001 Mobil: +46 (0)701 810 110 Mobil: +46 (0)701 810 001 E-post: E-post: pelle.hjortblad@tele1europe.se ivar.stromberg@tele1europe.se Tele1 Europe Holding AB Sonera Solutions Oy Liia Nou, CFO Lars Lundström, Deputy MD Tel: +46 (0) 8 5631 0233 Tel: +358 (0)2040 64534 Mobil: +46 (0)701810 233 Mobil: +358 (0)40 718 1537 E-post: liia.nou@tele1europe.se E-post: lars.lundstrom@sonera.com Tele1 Europe Holding AB proposes to change its name to Song Networks Holding AB. A formal decision will be made at the Annual General Meeting on 16 May 2001. About Tele1 Europe (NASDAQ: TEUR, Stockholm Stock Exchange: TEUR) Tele1 Europe is a rapidly expanding data and telecommunications operator with activities in Sweden, Denmark, Finland and Norway. The business concept is to provide broadband solutions for data, telephony and Internet, to large and mid-range businesses in the Nordic region. The company is constructing networks in the 80 largest cities in the Nordic region. The access networks, which links long-distance networks, will be one of Europe's fastest data and Internet super-highways with an initial capacity for customers of up to one gigabit. The company was founded in 1995 and has around 1000 employees. The head office is in Stockholm and there are an additional 24 offices located in the Nordic region. For further information see: www.tele1europe.com Facts about Sonera Sonera (HEX:SRA, NASDAQ: SNRA) is an international frontrunner in mobile communications and mobile-based services and applications. By combining its expertise in mobile communications, the internet and service provision, Sonera aims to develop into a global communications operator and provider of transaction and content services. The company also provides advanced data communications solutions to businesses and fixed network voice services in Finland and its surrounds. In 2000, Sonera's revenue amounted to EUR 2.05 billion and the profit before extraordinary items and tax was EUR 1.86 billion. Sonera employs over 11,200 people. Sonera started operations in Sweden in 1995. Sonera Sverige AB is a wholly-owned subsidiary of Sonera Corporation, Finland's leading telecom company, which is active in 14 countries. For further information see: www.sonera.com ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/04/20010504BIT00140/bit0002.doc http://www.bit.se/bitonline/2001/05/04/20010504BIT00140/bit0002.pdf