Strong US interest in Tele1 Europe new issue of shares

Strong US interest in Tele1 Europe new issue of shares Tele1 Europe Holding AB has signed an agreement about a directed new issue of shares with Providence Equity Partners, one of USA's leading telecom investment companies. Providence has been centrally placed on the owner side in several successful telecom companies such as Brooks Fiber Properties Inc. and Metronet Communications. In Europe, Providence is a main shareholder in Carrier 1, an international long distance telecom operator. According to the agreement, Tele1 Europe will issue shares valued at 27,5 million USD. 24 million will be acquired by Providence which will amount to a 32,5 % ownership of the company. The remaining 3,5 million USD will be acquired Tele1 Europe's existing major shareholders. The issue rate per share is SEK 104 which supply the company with 220 million SEK. Providence will appoint two members to the board of Tele1 Europe thereby underlining that Providence will play an active part in the company's growth. "Tele1 Europe's proposed issuance was met with strong interest from several leading international investors," states Ivar Strömberg, CEO of Tele1 Europe Holding AB. "We decided however to let the major part of the issue be covered by one investor and to increase the value from the originally planned 20 million to 27,5 million USD. It was important for us to get a well-known, heavy investor considering possible, future introductions to stock exchanges outside the Nordic market. Furthermore, we also consider turning to the international investment market to build up new financial resources for our continued growth", concludes Ivar Strömberg. The agreement with Providence will be presented to Tele1 Europe's present share holders for approval at the Annual General Meeting on March 1 in Stockholm. Tele1Europe is in a phase of strong growth. The annual turnover of 13 million SEK in 1997 has grown to 65 million SEK in 1998. A continued strong growth is expected also for 1999. The number of employees has increased from 6 in June 1997 to today's 110. The 220 million SEK capital will finance the continued aggressive growth strategy in the following areas: - Expansion of the digital network in Scandinavia - Launching mobile telephony services as a result of the recent break- through agreement with Telia Mobile AB by which Tele1 Europe became the first "virtual" GSM-operator in Europe. - An eventual expansion of Tele1 Europe's activities outside the Nordic market. For further information, please phone Ivar Strömberg, CEO Tele1 Europe Holding AB Tel +46 8 5631 1101, Mobile +46 708 810 001 Tele1 Europe is a "full-service" operator with a complete offering of telecom-services in a Nordic network of digital switches. The basic business idea is "outsourcing" of telecommunications in middle-sized and large companies and public administrations. Tele1 Europe has offices in Stockholm, Oslo, Copenhagen, Gothenburg, Malmo, Örebro and Bergen. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/10/20000228BIT00770/bit0001.doc http://www.bit.se/bitonline/1999/02/10/20000228BIT00770/bit0002.pdf