Tele2 Full Year Report 2007

Operating revenue less divested operations in Q4 2007 amounted to SEK
10,447 (9,731) million, an increase of 7 percent

EBITDA less divested operations in Q4 2007 increased by 4 percent to
SEK 1,564 (1,506) million

EBIT less divested operations in Q4 2007 amounted to SEK 247 (708)
million including one-off items of SEK -328 (50) million (see note 1
and 2)

Operating revenue less divested operations for the full year 2007
grew by 9 percent to SEK 40,313 (37,113) million. Operating revenue
from continuing operations 2) for the full year 2007 grew by 1
percent to SEK 43,420 (43,098) million

Net profit/loss from continuing operations for the full year 2007
amounted to SEK -302 (-1,003) million

Earnings per share from continuing operations after dilution for the
full year 2007 amounted to SEK -0.45 (-1.98)

Tele2's net debt amounted to SEK 5,198 (15,311) million at the end of
2007, a decrease by 66 percent

The Board of Directors proposes an ordinary dividend of SEK 3.15
(1.83) per share. The Board of Directors also proposes a special
dividend of 4.70 together with the authorisation to purchase up to 10
percent of shares in the company

Lars-Johan Jarnheimer, President and CEO of Tele2 AB comments:"2007 was an exciting year dominated by the successful realignment of
Tele2 and the strong operational development in our core mobile
businesses. Eastern Europe and Sweden have continuously been
highlighted as superior performers and we are pleased to notice that
Tele2's operations in these countries have ended the year on a high
note.

Looking into 2008, we see more of the same positive development. The
realignment process is set to continue. There is still a need to
further align the scale and scope of our organization to support the
areas where we have the best profitability.

In Q4 2007, Tele2 was awarded 17 new regional GSM 1800 licenses in
Russia. With progress comes challenge - we need to find qualified
personnel, establish a local presence in all regions and expand
commercially viable mobile networks. On the other hand our historic
performance in mobile operations proves we have a successful business
model in place.

We have said it before, but it is important to emphasize that our
core business is mobile services on our own infrastructure. At the
end of 2007 mobile services represented 56 percent of revenue and 84
percent of EBITDA. We know that we are world class in operating cost
efficient mobile networks and we will continue to focus our
management and financial resources in this area. Hence, it is
important that we continue to develop mobile services, through
investing and expanding in areas where we see extraordinary
opportunities, so that we can stay best in class.

In earlier reports we mentioned the promising development of mobile
broadband. The Q4 2007 performance strengthens our belief that mobile
broadband is the long awaited blockbuster data service. In 2008, we
will make sure that we lead this new market and based on the strong
acceleration in new customers, we believe that the coming years will
be key for our success.

Mobile telephony revenue and profitability continued to grow strongly
in the quarter. Revenues less divested operations grew by 19 percent
and EBITDA improved by 30 percent compared to Q4 2006 with a net
customer intake of 706,000. Russia continued to be the main growth
driver and Tele2 is now the largest operator in 6 of the regions
where we operate. The Swedish operations dominated the mobile
broadband market in the quarter, adding 48,000 new customers. At the
end of Q4 2007 we had 93,000 mobile broadband customers in Sweden.

Tele2 offers Broadband services in nine countries. Our broadband
operations less divested operations generated a revenue growth of 18
percent, driven mainly by our services on our own infrastructure. We
see the broadband product as a good complement to our core mobile
operations and it is important that profitability in this area
improves in 2008 and contributes to the operations as a whole.

Fixed telephony operations less divested operations, continued to
deliver robust results and we strove to maximise value by being costs
conscious. Our EBITDA margin within fixed telephony was a strong 18
percent in the quarter, despite a revenue decline of 17 percent
year-on-year as the market is in a structural decline."

Contacts:

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

Visit us at our homepage: www.tele2.com

Conference call details:
A conference call, with an interactive presentation, to discuss the
results will be held at 08.00 (CET) / 07.00 (UK time) / 02.00 am (New
York time), on February 12, 2008. The dial-in numbers are:
UK: +44 (0)20 7162 0025,
US: +1 334 323 6201,
France: +33 (0)1 7099 3208,
Germany: +49 (0)695 8999 0507,
The Netherlands: +31 (0)20 7965 008 and
Sweden: +46 (0)8 5052 0110

Please dial in 10 minutes prior to the start of the conference call
to allow time for registration. The conference call will also be
available as a link on the Tele2 corporate website www.tele2.com,
both live and as an archived version.

Tele2 is one of Europe's leading telecom operator. Tele2's mission is
to provide cheap and simple telecoms. Tele2 always strives to offer
the market's best prices. We have 25 million customers in 15
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 2007,
we had an operating revenue of SEK 43.4 billion and reported an
operating profit (EBITDA) of SEK 6.6 billion.