Millicom International Cellular S.A. Announces Results for

BERTRANGE, Luxembourg, Aug. 6, 2003 (PRIMEZONE) -- Millicom International Cellular S.A.:


 - 29% increase in EBITDA to $73.4m (Q2 02: $56.8m)*
 - 13% increase in revenue to $143.9m (Q2 02: $127.8m)*
 - 98% increase in quarterly EBITDA in Africa from Q2 2002*
 - 38% increase in quarterly EBITDA in Asia from Q2 2002*
 - 41% reduction in interest expense for the 6 months to June 30, 2003
 - EBITDA Margin of 51%*

Millicom International Cellular SA (Nasdaq:MICC), the global telecommunications investor, today announces results for the quarter ended June 30, 2003. Financial summary for the quarters ended June 30, 2003 and 2002


                                  June 30,    June 30,       Change
                                       2003        2002
 Worldwide subscribers (i) *
 -    proportional cellular          3,083,955   2,472,960     25%
 -    gross cellular                 4,471,835   3,483,573     28%
 US$ '000
 Revenues*                             143,862     127,750     13%

 Operating profit before
  depreciation and                      73,403      56,763     29%
  amortization, EBITDA(ii)*

 EBITDA margin*                            51%         44%       -

 Profit before financing, taxes 
  and other                            103,821      55,566       -
 income
 Profit (loss) for the quarter         176,035    (14,038)       -
 Basic and diluted earnings (loss) per                           -
 common share (US$)                      10.81      (0.86)
 Weighted average number of shares and                    
  diluted potential shares (thousands)  16,284      16,305

(i) Subscriber figures represent the worldwide total number of subscribers of cellular systems in which MIC has an ownership interest.Subscriber figures do not include divested operations or the subscribers of Tele2 AB, in which MIC has a 6.0% interest at August 6,2003.

(ii) EBITDA; operating profit before interest, taxation, depreciationand amortization, is derived by deducting cost of revenues, sales andmarketing costs, and general and administrative costs from revenues.

* Due to local issues in El Salvador, MIC has discontinuedconsolidating El Salvador on a proportional basis with effect from May2001. All comparatives in this press release, other than thosenoted in the appendices, exclude divested operations and El Salvador inrespect to subscribers and for financial results, up to andincluding EBITDA.

Marc Beuls, MIC's President and Chief Executive Officer stated: "The second quarter of 2003 has been positive for MIC and I am pleased to report a 29% increase in EBITDA for the quarter from the same period in 2002, the highest increase for over two years. MIC Africa was the best performer in terms of EBITDA, producing growth of 98%, which is a record result representing a turnaround for the region. Group revenues increased by 13% from the second quarter of 2002 and the EBITDA margin rose to 51%, evidencing the benefit of our recent cost cutting exercise and the renewed focus on our core businesses.

Millicom has taken several steps in the first half of 2003 to reduce total net debt on the balance sheet and at June 30, 2003, this figure stood at $875.1 million, a 35% reduction from the same time last year, and interest payments are now 41% lower. These and subsequent initiatives to retire high-yield debt will result in an increase in free cash flow going forward, allowing MIC to grow its mobile businesses faster and deliver increased value to shareholders."

FINANCIAL AND OPERATING SUMMARY

Subscriber growth:

OE An annual increase in worldwide gross cellular subscribers of 28%to 4,471,835 as at June 30, 2003

OE An annual increase in worldwide proportional cellular subscribersof 25% to 3,083,955 as at June 30, 2003

OE In the second quarter of 2003 MIC added 223,121 net new grosscellular subscribers

OE An annual increase in proportional prepaid subscribers of 31% to2,764,099 as at June 30, 2003

- Financial highlights:

OE Revenue for the second quarter of 2003 was $143.9 million, anincrease of 13% from the second quarter of 2002

OE EBITDA increased by 29% in the second quarter of 2003 to $73.4million, from $56.8 million for the second quarter of 2002

OE The Group EBITDA margin was 51% in the second quarter of 2003increasing from 44% in the second quarter of 2002

- Total cellular minutes increased by 32% for the three months endedJune 30, 2003 from the same quarter in 2002, with prepaid minutesincreasing by 62% in the same period

- In April 2003 MIC launched GSM services in the Lao People's Democratic Republic (Laos) under the Tango brand name.

- On May 5, 2003 MIC announced that approximately $781 million or 85%of the outstanding amount of Millicom's 13-1/2% Senior Subordinateddiscount Notes due 2006 or the "Old Notes" had been tendered inMillicom's private exchange offer and consented to certain amendments tothe existing indenture covering the Old Notes.

- Upon closing of the exchange offer on May 7, 2003, Millicom issuedapproximately $562 million of Millicom's 11% Senior Notes due 2006 andapproximately $64 million of Millicom's 2% Senior Convertible PIK(payment in kind) Notes due 2006 in exchange for the $781 million of OldNotes tendered. In addition Millicom also paid to holders of Old Notes,who consented to the amendments of the Old Notes indenture, $50 per$1,000 of Old Notes so consenting (excluding affiliates of Millicom) orapproximately $38 million in the aggregate. Millicom's 2% SeniorConvertible PIK Notes due 2006 are convertible into Millicom commonstock at a conversion price of $10.75 per share. If the originalprincipal amount of approximately $64 million of the new 2% SeniorConvertible Notes were converted into Millicom's common stock, the 2%Notes would convert into approximately 5.93 million shares of Millicom'scommon stock (which, when issued, would constitute approximately 26.7%of the then issued and outstanding common stock).

- As at June 30, 2003, MIC reports total net debt, after cash and time deposits, of $875.1 million, a reduction of 23% compared with totalnet debt of $1,141.9 million as at December 31, 2002, and a reduction of35% compared with total net debt of $1,356.1 million as at June 30,2002. Of this debt, $49.7 million is in respect of PIK Notes convertibleat any time into MIC shares at a price of $10.75.

- In the second quarter of 2003, MIC sold 1,000,000 B shares in Tele2AB realizing a gain of $2.0 million.

Subsequent events:

OE On July 18, 2003 MIC launched a mandatory exchangeable bondoffering of approximately SEK 2,556 million (US$310 million). The bondswill be convertible into MIC's total current holding of 8,968,400 Tele2AB Series B shares. The bonds, which will mature in August 2006, carrya coupon of 5% and the exchange premium has been set at 30% with areference price of SEK 285.

REVIEW OF OPERATIONS

SUBSCRIBER GROWTH*

At June 30, 2003 MIC's worldwide gross cellular subscriber base increased by 28% to 4,471,835 cellular subscribers, from 3,483,573 as at June 30, 2002. Particularly significant percentage increases were recorded in Cambodia, Vietnam, Ghana, and Senegal.

MIC's proportional cellular subscriber base increased by 25% to 3,083,955 at June 30, 2003, from 2,472,960 at June 30, 2002.

Within the 3,083,955 proportional cellular subscribers reported at the end of the second quarter 2003, 2,764,099 were pre-paid customers, representing a 31% increase on the 2,110,002 proportional prepaid subscribers recorded at the end of June 2002. Pre-paid subscribers currently represent 90% of gross reported proportional cellular subscribers.

FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2003*

Total revenues for the three months ended June 30, 2003 were $143.9 million, an increase of 13% from the second quarter of 2002. This increase, following two successive quarters with growth of 11%, reflect the increasing trend of growth in MIC's operations. MIC recorded revenue growth in Asia of 24% in the second quarter of 2003 compared with the same period in 2002, with Pakcom in Pakistan producing growth of 38%, and revenues for Africa for the second quarter of 2003, increased by 30% to $18.5 million from the same period last year.

Second quarter revenues for Latin America decreased by just over 2% from the second quarter of 2002 as a result of currency devaluations in South America in the second half of 2002, although the Central American market continued to perform strongly with Guatemala producing a revenue increase of 17% from the second quarter of 2002. Against the first quarter of 2003, revenues in Latin America increased by over 2% reflecting increased stabilization in the region.

EBITDA for the three months ended June 30, 2003 was $73.4 million, an increase of 29% from the quarter ended June 30, 2002. EBITDA for Asia increased by 38% from the second quarter of 2002 to $38.2 million, with a particularly strong increase produced by Cambodia, which recorded growth from the second quarter of 2002 of 164%. The strong EBITDA growth in the region as a whole reflects the buoyancy of this market and the impact of stringent cost cutting measures. MIC Africa produced impressive EBITDA growth of 98% from the second quarter of 2002 to $8.3 million, a record for the region. The EBITDA margin in Africa increased from 30% in the second quarter of 2002 to 45% in 2003.

The positive impact of cost cutting in Latin America was reflected in the EBITDA for the region, which increased by 7% from the second quarter of 2002 to $26 million, with margins increasing from 43% to 48%. The main contributors to EBITDA increase were Guatemala and Honduras, which recorded increases of 36% and 16% respectively from the second quarter of 2002. Against the first quarter of 2003, EBITDA in Latin America increased by over 4%.

As a result of the debt exchange in May 2003, MIC recorded a book gain of $97.1 million.

FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2003*

Total revenues for the first half of 2003 were $282.6 million with revenues for Asia and Africa increasing by 24% and 28% to $131.7 million and $36.5 million respectively, relative to the first half of 2002. Revenues for Latin America for the first half of the year decreased by 4% to $107.9 million, due significantly to currency devaluations and an economic slow-down in South America.

EBITDA for the first half of 2003 was $142.4 million, an increase of 25% over the first half of 2002. Most notably Africa recorded a 67% increase in EBITDA for the six months ended June 30, 2003. The respective increases for Asia and Latin America were 36% and 4%. The EBITDA margin for the six months to June 30, 2003 was 50%, an increase over the 45% recorded for the same period in 2002, with a notable increase from 32% to 42% in Africa.

Total cellular minutes increased by 31% for the first half of 2003 compared with the same period in 2002.

In the first six months of 2003, MIC reduced its interest expense by 41% to $55.7 million from $94.1 million as at June 30, 2002 as a result of debt restructuring and the divestment of certain highly leveraged operations.

In the first half of 2003, the market value of MIC's holding in Tele2 AB has increased by $99.9 million.

During the second quarter of 2003, MIC cancelled the circular stock that had previously been disclosed as treasury stock in equity.

CORPORATE LIQUIDITY AND DEBT INDICATORS


                                         At June 30, 2003

 Cash at the corporate level         $22.1m
 Cash upstreamed from operations     $48.1m
 Toronto Dominion debt outstanding   $60.2m
 13.5%                               $136.4m
 11%                                 $562.2m
 2%                                  $49.7m
 Subsidiary debt                     $155.2m
 Total Tele2 shares                  8,968,414

Millicom International Cellular S.A. is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has a total of 16 cellular operations and licenses in 15 countries. The Group's cellular operations have a combined population under license (excluding Tele2) of approximately 382 million people. In addition, MIC provides high-speed wireless data services in five countries. MIC also has a 6.0% interest in Tele2 AB, the leading alternative pan-European telecommunications company offering fixed and mobile telephony, data network and Internet services to 18.7 million customers in 22 countries. The Company's shares are traded on the Luxembourg Bourse and the Nasdaq Stock Market under the symbol MICC.

This press release may contain certain "forward-looking statements" with respect to Millicom's expectations and plans, strategy, management's objectives, future performance, costs, revenues, earnings and other trend information. It is important to note that Millicom's actual results in the future could differ materially from those anticipated in forward-looking statements depending on various important factors. Please refer to the documents that Millicom has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Millicom's most recent annual report on Form 20-F, for a discussion of certain of these factors.

All forward-looking statements in this press release are based on information available to Millicom on the date hereof. All written or oral forward-looking statements attributable to Millicom International Cellular S.A., any Millicom International Cellular S.A. members or persons acting on Millicom's behalf are expressly qualified in their entirety by the factors referred to above. Millicom does not intend to update these forward-looking statements.

Millicom International Cellular S.A. Announces Results for the Quarter Ended June 30, 2003

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