NEW YORK, LONDON and BERTRANGE, Luxembourg, Dec. 10, 2002 -- Millicom International Cellular S.A. ("Millicom") (Nasdaq:MICC), the global telecommunications investor, today announces that it has entered into separate discussions with third parties for the disposal of its cellular operations in The Philippines (Extelcom) and Colombia (Celcaribe). There can be no assurance that either transaction will occur.
Extelcom, Millicom's business in The Philippines, has continued to experience a number of difficult operational and trading issues, which have adversely impacted its financial performance. The board of Millicom has therefore concluded that the most appropriate course of action is to pursue a sale of Extelcom. Discussions with a potential buyer are ongoing and it is currently anticipated that the sale of Extelcom will be made for little consideration. It is expected that the sale of Extelcom will result in Millicom incurring a book write-off of approximately U.S. $50 million.
Separately, Millicom is in discussions with a third party regarding the potential sale of Celcaribe, Millicom's business in Colombia. In the context of this transaction, the third party potential purchaser is currently conducting due diligence of Celcaribe's operations. It is currently anticipated that the sale of Celcaribe will result in Millicom incurring a book write-off of approximately U.S. $125 million.
Millicom also announces that it has retained Lazard to assist it in reviewing strategic alternatives to address Millicom's ongoing liquidity needs, including other potential asset sales and divestitures, the availability of new debt and equity financing and potential debt restructuring alternatives.
Millicom has, directly or through its affiliates, repurchased from time to time over the past year a portion of its outstanding debt securities at a discount from par and may continue to do so in the future depending upon market conditions and its other liquidity needs.
CONTACTS:
Marc Beuls Telephone: +352 27 759 101 President and Chief Executive Officer Millicom International Cellular S.A., Luxembourg Jim Millstein Telephone: +1 212 632 6000 Peter Warner Telephone: +44 20 7588 2721 Lazard Andrew Best Telephone: +44 20 7321 5022\ Investor Relations Shared Value Ltd., London
Millicom is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has a total of 18 cellular operations and licenses in 17 countries. The Group's cellular operations have a combined population under license (excluding Tele2) of approximately 444 million people. Millicom also has a 7.0% interest in Tele2 AB, the leading alternative pan-European telecommunications company offering fixed and mobile telephony, data network and Internet services to over 16 million customers in 21 countries. Millicom's shares are traded on the Nasdaq Stock Market under the symbol MICC.
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