STOCKHOLM, Sweden, Dec. 8, 2004 (PRIMEZONE) -- Tele2 AB, ("Tele2") (Nasdaq:TLTOA) (Nasdaq:TLTOB) (Stockholmsborsen: TEL2A and TEL2B) the leading alternative pan-European telecommunications company, today announced that following the necessary approvals from the Austrian anti-trust authorities, it has completed the acquisition of UTA, the leading Austrian alternative telecommunications operator.
Tele2 has acquired UTA for MEUR 213 on a debt-free basis with consideration consisting of cash and assumed debt. This acquisition allows Tele2 to cut its costs significantly in Austria, with cost synergies anticipated at MEUR 30 on an annualized basis as of 2005. Integration costs are estimated to amount to MEUR 30. UTA will be included in Tele2's results from January 1, 2005.
Lars-Johan Jarnheimer, CEO of Tele2 said: "We are very pleased that the acquisition of UTA has received the necessary approvals from the Austrian authorities. Austria's consumers and businesses will benefit from this acquisition, through the emergence of a bigger and stronger competitor to the incumbent, providing them with high quality telecom services at low prices."
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Tele2 is Europe's leading and profitable alternative telecom operator. Tele2 always strives to offer the market's best prices. With our unique values, we provide cheap and simple telecom for all Europeans every day. We have close to 26 million customers in 24 countries. We offer products and services in fixed and mobile telephony, Internet access, data networks, cable TV and content services. Our main competitors are the former government monopolies. Tele2 was founded in 1993 by Jan Stenbeck and has been listed on Stockholmsborsen since 1996. The share has also been listed on Nasdaq since 1997. In 2003 we had operating revenue of SEK 36,911 million and reported a profit of SEK 5,710 million (EBITDA).
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-0- CONTACT Tele2 AB Lars-Johan Jarnheimer, President and CEO Telephone: + 46 8 562 640 00 Tele2 AB Hakan Zadler, CFO Telephone: + 46 8 562 640 00 Investor enquiries: Dwayne Taylor Telephone: + 44 20 7321 5038 Lena Krauss Telephone: + 46 8 562 000 45