INTERIM REPORT JANUARY-SEPTEMBER 2007

Stockholm - Wednesday, October 24, 2007 - Tele2 AB ("Tele2") (OMX
Nordic Exchange: TEL2 A and TEL2 B), Europe's leading alternative
telecom operator, today announced consolidated results for the third
quarter 2007.

-            The realignment of Tele2 continued in the quarter, with
a number of announcements concentrating the geographic footprint
towards Eastern Europe and the Nordic region, focusing on
infrastructure based operations
-           Operating revenue in Q3 2007 amounted to SEK 10,909
(11,014) million, or SEK 10,760 (10,016) million less divested
companies an increase of 7 percent
-           EBITDA in Q3 2007 increased by 8.5 percent to SEK 1,844
(1,657) million excluding one-off items of SEK 0 (43) million, or
increased by 15 percent to SEK 1,840 (1,594) million less divested
companies
-           EBIT in Q3 2007 increased by 13 percent to SEK 851 (756)
million excluding one-off items of SEK -242 (-2,416) million related
to impairment of goodwill and other assets, as well as to
gains/losses from divestments. Including one-off items EBIT amounted
to SEK 609 (-1,660) million
-           Net profit/loss for Q3 2007 amounted to SEK -138 (-1,769)
million affected by a write-down of tax assets amounting to SEK -599
million
-           Earnings per share, after dilution, for Q3 2007 amounted
to SEK -0.25 (3.92)
-           Operating revenue for the first nine months grew by 3
percent to SEK 32,967 (31,946) million
-           Net profit/loss for the first nine months amounted to SEK
-134 (-1,253) million
-           Earnings per share after dilution for the first nine
months amounted to SEK -0.07 (-2.58)


Lars-Johan Jarnheimer, President and CEO of Tele2 AB comments:"Tele2 is running faster then ever. The realignment of Tele2
continued in the quarter with a number of announcements that
concentrated our geographic footprint towards Eastern Europe and the
Nordic region, but also important announcements of increased
investments in countries including Russia and Norway. Our realignment
process has this far mostly been visualized in the form of
divestments of operations that we believe would not have met our
internal financial targets. Concentrating our geographic footprint is
only one leg of the process. The other leg is about securing our
future success by investing and expanding in markets where we see
great opportunities both for growth and enhanced profitability. We
will focus on and develop our core businesses in order to stay best
in class.

The number of corporate customers is rising and corporate sales
represent 18 percent of group revenue. In addition to our already
solid corporate customer base in Austria, the Netherlands and Sweden,
we are stepping up our efforts in the SME segment in the Baltic
countries and Russia, and we see great opportunities also in other
countries.

Mobile telephony continued to deliver robust growth and profitability
improvement in the quarter. Revenues grew by 17 percent and EBITDA
improved by 29 percent compared to Q3 2006, with a net customer
intake of 866,000. Once again, Russia was the biggest growth
contributor although Sweden had a very strong quarter adding 100,000
new mobile customers. In Sweden, we are finally seeing a clear
pick-up in mobile broadband and 3G services during the past two
quarters. At the end of Q3 2007 we had 45,000 mobile broadband
customers in Sweden. We intend to continue our push into the fourth
quarter.

Tele2 now offers Broadband services in nine countries. Our continuing
broadband operations, excluding Spain and Italy generated revenue
growth of 8 percent, driven mainly by our services on own
infrastructure. We see the broadband product as a good complement to
our core mobile operations.

We still believe in the potential for fixed telephony and we strive
to maximise value through broadband cross-selling and cost
consciousness. Despite a revenue decline of 27 percent year-on-year
as the market is in a structural decline, our EBITDA margin within
fixed telephony improved to 13 percent in the quarter."


Further information can be obtained from:
Lars-Johan Jarnheimer, President and CEO, Tele2 AB, Telephone: +46
(0)8 5626 4000
Lars Nilsson, CFO, Tele2 AB, Telephone: +46 (0)8 5626 4000
Lars Torstensson, Investor Relations, Telephone: + 46 (0)8 5620 0042
Lena Krauss, Investor Relations, Telephone: + 46 8 5620 0045


Presentation details
A presentation to discuss the results will be held at 06.45 am UK
time (07.45 am CET) in room Aulan, at SalénHuset, Norrlandsgatan 15,
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, with an interactive presentation, to discuss the
results will be held at 15.00 (CET) / 14.00 (UK time) / 19.00 am (New
York time), on October 24, 2007. The dial-in number is: +44 (0)20
7806 1957 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 6466395#. 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 25 million customers in 17 countries. Tele2 offers fixed and
mobile telephony, broadband, 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 OMX Nordic Exchange since 1996. In 2006, we had an operating
revenue of SEK 50.3 billion and reported an operating profit (EBITDA)
of SEK 5.7 billion.