The board of Tele1 Europe Holding AB proposes stock option program

The board of Tele1 Europe Holding AB proposes stock option program The board of Tele1 Europe Holding AB has decided to call an extra general meeting to propose the company to raise a subordinated loan, with a nominal amount of up to SEK 170,000 by issuing debentures with up to 1,700,000 warrants to subscribe for new shares, as well as to raise two subordinated loans, with a nominal amount of SEK 1 each, by issuing two debentures with a total of 40,000 warrants to subscribe for new shares. Subordinated loan in an amount of up to SEK 170,000 The loan may, with deviation from shareholder's preemptive rights, be subscribed for by employees in Tele1 Europe Holding AB and its subsidiaries, as well as the wholly owned subsidiary Tele1 Europe AB for the purpose of subsequent transfer of warrants to future employees of the Tele1 Europe group. The debentures carry a 3% annual interest and are due March 28, 2002. The debentures, each in nominal amount of SEK 10 with 100 warrants to subscribe for 100 shares attached thereto, shall be issued at a price corresponding to the value of the warrants, calculated in accordance with the so-called Black & Scholes model based on the share price, plus SEK 10 corresponding to the nominal amount of the debenture. The exercise price per share for the warrants shall correspond to 125% of the average bid price for the company's shares on the Stockholm Stock Exchange during the period February 27, 2001 - March 12, 2001. Exercise of the warrants, where one warrant entitles the shareholder to subscribe for one share, can be made during the period between September 3, 2001, and march 15, 2004. The purpose is to increase the employees' interest in the Tele1 Europe group and increase the employees' incentive to good performance. Two debentures in a nominal amount of SEK 1 each The two loans may, with deviation from shareholders preemptive rights, be subscribed for by the company's wholly owned subsidiary Tele1 Europe in Finland Oy, for the purpose of detaching the warrants after subscription and transfer them in accordance with the terms of previously issued employee options. The debentures carry a 3% annual interest and are due March 28, 2002. The debentures, each having a nominal amount of SEK 1 with 20,000 warrants to subscribe for new shares attached to each of them, will be issued at the debentures' nominal amount. For the 20,000 warrants attached to the first loan, the exercise price per share shall, at the date of exercise, be an amount in SEK corresponding to NOK 3,65, increased by 1% per month from September 1, 1998, including the month of exercise. For the remaining 20,000 warrants attached to the second loan, the exercise price per share shall, at the date of exercise, be an amount in SEK corresponding to NOK 4, increased by 1% per month from January 15, 1999, including the month of exercise. The purpose to the issue is to ensure that the company's subsidiaries are able to fulfil its obligations under employee options previously issued to employees in Norway. As a consequence of the board's proposals above the company's share capital may increase in total with up to SEK 87.000, which, assuming full exercise corresponds to approximately 1,1% of the total number of shares and votes. The dilution, taken into account all previously issued and outstanding warrants, corresponds to approximately 9,6% of the total number of shares and votes. Further information, please contact: Tele1 Europe Holding AB Ulrika Kullberg, Legal Co-ordinator Phone: +46 8 56 31 0305 E-mail: ulrika.kullberg@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 information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/01/26/20010126BIT00830/bit0001.pdf