Interim Report January - March 2011

Stockholm - Tele2 AB, (Tele2), (NASDAQ OMX Stockholm: TEL2 A and TEL2 B) today announced its consolidated results for the first quarter 2011. "Offering the Best Deal is our business" "The first three months of 2011 have continued to show strong revenue growth in our main markets. During the quarter, we focused on executing against our set performance targets, and I am glad to announce that our results are in line with the company's financial guidance. In order to generate enduring revenue growth, the area of cost efficiency is primarily targeted at. Price leadership, a central pillar of offering the Best Deal, requires us to be cost leaders. We unceasingly measure our progress by benchmarking ourselves against our industry peers. It is of great importance that we continue to prove that Tele2 is the master of cost efficiency in our industry." Financial highlights Net sales amounted to SEK 9,573 (9,527) million corresponding to a growth less exchange rate fluctuations of 7 percent. EBITDA in Q1 2011 amounted to SEK 2,457 (2,358) million, equivalent to an EBITDA margin of 26 (25) percent. EBITDA growth less exchange rate fluctuations amounted to 11 percent. Robust EBITDA contribution in market area Russia In Q1 2011, Tele2 Russia added 547,000 (949,000) customers in an increasingly competitive market. EBITDA amounted to SEK 942 (719) million, equivalent to an EBITDA margin of 36 (32) percent. Accelerating mobile revenue growth in market area Nordic Mobile revenue in Sweden grew by 17 percent, as customer demand for smartphones and data services continued to increase during the quarter. Mobile customer intake in Norway was good, amounting to 8,000 (4,000). Kazakhstan prepared for launch in market area Central Europe & Eurasia During the quarter, Tele2 in Kazakhstan prepared for commercial launch through intensified efforts for improving network quality and distribution capabilities. The Interim report is available on Result Meeting Tele2 will present the results at a meeting at Myntkabinettet, Slottsbacken 6, Stockholm, at 10.45 am CET (09:45 am UK time/04:45 am NY time) on Tuesday, April 19, 2011. The presentation will be held in English and webcasted on Tele2's dedicated Q1 2011 website, There will also be the possibility to listen to the meeting live over the phone and attend the Q&A session via a conference call. Please note that there might be a time lag of up to 30 seconds between the Internet broadcast and the conference call if you are simultaneously watching and calling in to the press conference. 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 31 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. Interim Report Jan-Mar 2011: This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Tele2 AB via Thomson Reuters ONE [HUG#1507505]