Tele2 Interim Report January - June 2007

Stockholm - Wednesday, July 25, 2007 - Tele2 AB ("Tele2") (OMX Nordic
Exchange: TEL2 A and TEL2 B), Europe's leading alternative telecom
operator, today announced its consolidated results for the second
quarter 2007.

- Operating revenue for Q2 2007 grew by 6 percent to SEK 13,110
(12,386) million

- EBITDA in Q2 2007 increased by 40 percent to SEK 1,737 (1,237)
million

- EBIT in Q2 2007 increased by 110 percent to SEK 604 (288) million
excluding one-off items of SEK -520 (52) million related to the sale
of Alpha Telecom and Calling Card Company (C3) operations. Including
one-off items EBIT decreased by 75 percent to SEK 84 (340) million

- Net profit/loss from continuing operations for Q2 2007 amounted to
SEK 108 (136) million excluding one-off items of SEK -520 (52)
million

- Earnings per share from continuing operations, after dilution, for
Q2 2007 amounted to SEK 0.32 (0.41) excluding one-off items of SEK
-520 (52) million

- Operating revenue for H1 2007 grew by 5 percent to SEK 25,947
(24,629) million

- Net profit/loss for H1 2007 amounted to SEK 190 (279) excluding,
and SEK -330 (331) million including, one-off items of SEK -520 (52)
million

- Earnings per share, after dilution, for H1 2007 amounted to SEK
0.60 (0.81) excluding, and SEK -0.57 (0.92) including, one-off items
of SEK -520 (52) million

- Mobile revenues in Q2 2007 increased by 25.5 percent to SEK 5.8
billion

- Continued excellent performance in Russian mobile operations with
EBITDA margin of 33 percent in Q2 2007. Russia now has a customer
base in excess of 7.9 million

- Solid broadband intake during Q2 2007, adding a total of 221,000
new broadband customers

- Fixed telephony EBITDA margin at 12 (9) percent in Q2 2007

Lars-Johan Jarnheimer, President and CEO of Tele2 AB comments:"Tele2's realignment process remains on track and is proving
successful. As stated previously, a more infrastructure-based
strategy will lead to higher margins. These quarterly results prove
that we really are on the right track. Our focus on core business in
mobile and broadband services is showing key results. EBITDA grew 40
percent, compared to Q2 2006.

However, we're aiming even higher. Therefore we have introduced a
financial hurdle to keep us on our toes. We have set a minimum EBITDA
target of 20 percent for each of Tele2's geographies, and they must
stride over this hurdle in the medium term. This is a sign of our
dedication, focus and concentration.

Our performance in mobile services is strong. Russia has once again
proved star qualities with an EBITDA margin at a record-high 33
percent. Competition is tough in the Russian mobile services market,
but we are certain of our ability to master the current situation.

The Baltic region produced impressive revenue growth, with a
year-on-year increase of 18 percent. We see promising development,
especially in the corporate segment. The Nordic area is showing a
good balance between revenue growth and EBITDA development in
absolute terms.

Our broadband business continues to show progress with a total
customer intake of 221,000 new customers in Q2 2007. Italy
accomplished its strongest direct access & LLUB intake ever, adding
107,000 customers during the quarter.

EBITDA in direct access & LLUB was negatively impacted by start-up
costs - this time in the German operations. However, I am pleased to
see that Southern Europe has turned the corner when it comes to
operational performance.

Tele2's fixed line customer base still offers opportunities in
cross-selling broadband services. Dispite a high level of
competition, our fixed line operations are developing according to
plan. We strive to maximize value through an extremely cost-conscious
regime and broadband cross-selling."

Further information can be obtained from:
Lars-Johan Jarnheimer, President and CEO Tele2 AB, Telephone: +46 8
5626 4000

Lars Nilsson, CFO Tele2 AB, Telephone: +46 8 5626 4000

Lars Torstensson, Investor Inquiries, Telephone: +46 702 73 48 79

Visit us at our website: http://www.tele2.com

PRESENTATION DETAILS
A presentation to discuss the results will be held at 06.45 am UK
time (07.45 am CET) at Hilton Stockholm Slussen, Guldgränd 8,
Stockholm. The presentation will be web-cast on Tele2's website
www.tele2.com, along with the presentation material.

CONFERENCE CALL DETAILS
A conference call to discuss the results will be held at 16.00 (CET)
/ 15.00 (UK time) / 10.00 am (New York time), on July 25, 2007. The
dial-in number is: +44 (0)20 7806 1956 or US: +1 718 354 1388. Please
dial in 10 minutes prior to the start of the conference call to allow
time for registration. A recording of the conference call will be
available for 10 days after the call on: +44 (0)20 7806 1970 or US:
+1 718 354 1112 with access code 3024007#. The conference call will
be web-cast on Tele2's website www.tele2.com, with the possibility to
enter questions online.


Tele2 is Europe's leading alternative telecom operator Tele2's
mission is to provide cheap and simple telecoms for everyone in
Europe. Tele2 always strives to offer the market's best prices. We
have 29 million customers in 21 countries. Tele2 offers fixed and
mobile telephony, broadband, data network services and cable TV. 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 OMX Nordic Exchange since 1996.
In 2006 we had operating revenue of SEK 50.3 billion and we reported
an operating profit (EBITDA) of SEK 5.7 billion.