Interim Report January - June 2011

Stockholm - Tele2 AB, (Tele2), (NASDAQ OMX Stockholm: TEL2 A and TEL2 B) today announced its consolidated results for the second quarter 2011.

"Offering the Best Deal is our business"

"I am pleased to present the results of another record quarter for Tele2. We continue to deliver the Best Deal and meet its challenges in all our markets. Our financial performance is in line with our guidance and targets. In short, all our markets are doing well."

Financial highlights
Net sales amounted to SEK 9,998 (10,539) million corresponding to a growth excluding exchange rate difference and one-off items of 6 percent in the quarter. EBITDA in Q2 2011 amounted to SEK 2,711 (2,687) million, equivalent to an EBITDA margin of 27 (27) percent. EBITDA growth excluding exchange rate differences was 7 percent.

Record EBITDA contribution in market area Russia
In Q2 2011, Tele2 Russia added 720,000 (1,113,000) customers leading to a total customer base of 19.7 million. EBITDA amounted to a record SEK 1,115 (944) million, equivalent to an EBITDA margin of 39 (36) percent.

Robust mobile revenue growth in market area Nordic
Mobile revenue in Sweden grew by 10 percent, as customer demand for smartphones and data services remained strong during the quarter. Mobile customer intake in Norway was good, amounting to 8,000 (7,000).

Successful launch of Tele2's operations in Kazakhstan leads to record customer intake
During the quarter, Tele2 Kazakhstan launched commercial services in 5 out of 16 regions in the country. As a result, the customer intake jumped to 355,000 (-48,000) in the quarter.

Tele2 Netherlands finalized the integration of BBned
The integration of BBned will result in a more flexible organization, which will provide easy-to-use communication services to all segments.

Tele2 AB paid a total dividend of SEK 27 (5.85) per share
In May, Tele2 AB paid a total dividend of SEK 27 (5.85) per share comprised of an ordinary dividend of SEK 6.00 (3.85) per share and an extraordinary dividend of SEK 21.00 (2.00) per share.

The Interim report is available on reports.tele2.com/2011/Q2

Telephone conference
Tele2 will host a conference call, with an interactive presentation, for the global financial community at 10.45 am CET (09.45 am UK time/04.45 am NY time) on Wednesday, July 20, 2011. The conference call will be held in English and will also be made available as an audiocast on Tele2's dedicated Q2 2011 website, reports.tele2.com/2011/Q2.

Dial-in information:
To ensure that you are connected to the conference call, please dial in a few minutes before the start of the conference call to register your attendance.

Dial-in numbers:
Sweden: +46 8 505 598 53
UK: +44 203 043 24 36
US: +1 866 458 40 87

Contacts
Mats Granryd
President & CEO
Telephone: + 46 (0)8 5620 0060

Lars Nilsson
CFO
Telephone: +46 (0)8 5620 0060

Lars Torstensson
Group Director, Corporate Communication
Telephone: + 46 (0)8 5620 0042

Tele2 is one of Europe 's leading telecom OPERATORS, always providing the best deal. We have 32 million customers in 11 countries. Tele2 offers mobile services, fixed broadband and telephony, data network services, cable TV and content services. Ever since Jan Stenbeck founded the company in 1993, it has been a tough challenger to the former government monopolies and other established providers. Tele2 has been listed on the NASDAQ OMX Stockholm since 1996. In 2010, we had net sales of SEK 40.2 billion and reported an operating profit (EBITDA) of SEK 10.3 billion.