Tele1 Europe announces intention to issue Euro 150 million Senior Notes

Not for distribution into the United States, Canada or Japan Tele1 Europe announces intention to issue Euro 150 million Senior Notes Tele1 Europe Holding AB, a pan-Nordic provider of broadband communications services, today announced the intent of its wholly owned subsidiary Tele1 Europe N.V. to issue Euro 150 million aggregate principal amount of senior notes due 2008. Ivar Strömberg, Tele1 Europe's Chief Executive Officer said: "We are committed to our goal of continuing to strengthen our position as a leading provider of broadband services to the business market throughout the Nordic region. We have a strong financial position and our existing business plan continues to be fully funded. The proceeds from this offering will be used to capitalise on acquisition opportunities which complement our current business plan and to further accelerate the expansion of our business. We reiterate our objective to achieve EBITDA break-even no later than the second quarter of 2002. " Although Tele1 Europe's audited financial statements for the year ended December 31, 2000 are not due to be released before mid-February 2001, the company today announced its belief that it will meet its revenue and gross margin targets for the fourth quarter. The company also stated its belief that it had met or exceeded its 2000 network build-out and customer targets. Liia Nõu, Tele1 Europe's Chief Financial Officer said: "Although our year end audit is still in progress, on a preliminary basis, we expect our revenues for the quarter ended December 31, 2000 to range between SEK 355 million and SEK 360 million, and our gross margin is expected to be in excess of 37%. Our adjusted EBITDA loss for the quarter is expected to range between SEK 137 million and SEK 142 million. EBITDA is adjusted for provisions for social security fees and compensation expenses related to employee stock options, foreign exchange losses and other items. The EBITDA loss includes up to SEK 20 million for additional provisions for doubtful accounts, the majority of which amount relates to certain internet-based customers. The EBITDA loss also includes an estimated SEK 30 million including (i) contractual payments related to prior acquisitions, which are treated as SG&A under US GAAP, and (ii) non- recurring costs related to our applications for Swedish and Norwegian UMTS licenses." Further information, please contact: Tele1 Europe Holding Tele1 Europe AB Holding AB Ivar Strömberg, CEO Liia Nõu, CFO Phone: +46 8 5631 00 Phone: +46 8 56 31 01 02 33 E-mail: E-mail: ivar.stromberg@tele1eu liia.nou@tele1euro rope.se pe.se Tele1 Europe Holding AB Cecilia Johansson, Investor Relations Phone: +46 8 56 31 02 19 E-mail: cecilia.johansson@tele1europe.se About Tele1 Europe (NASDAQ: TEUR, Stockholm Stock Exchange: TEUR) Tele1 Europe is a fast-growing data and telecommunications operator with operations in Denmark, Finland, Norway and Sweden. The group's business concept is to offer broadband solutions for data, telephony and the Internet to large and medium-sized business and organisations in the Nordic countries. Tele1 Europe is currently the only Nordic data and telecommunications operator investing in local access networks with broadband capacity. This construction is taking place in the nine largest cities in the Nordic countries. The access networks, which are linked together with a long-distance network, will be Europe's fastest "motorway" for data and Internet traffic with an initial capacity for customers of up to one gigabyte. http://www.tele1europe.com This announcement and the information contained herein do not constitute an offer to sell or a solicitation of any offer to buy the senior notes in the Kingdom ofSweden, the United States or elsewhere. The senior notes to be offered will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the company and management, as well as financial statements. No money, securities or other consideration is being solicited by this announcement or the information contained herein and, if sent in response to this announcement or the information contained herein, will not be accepted. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/01/23/20010123BIT00970/bit0001.pdf