Issue and repurchase of Class C shares under incentive programme

Stockholm - Tele2 AB, ("Tele2"), (OMX Nordic Exchange Stockholm: TEL2
A and TEL2 B), today announced that the Board of Directors resolved
to issue and immediately thereafter repurchase 850,000 new Class C
shares.

By virtue of authorisation from the Annual General Meeting of
shareholders on 14 May 2008, the Board of Directors has resolved to
increase the share capital by SEK 1,062,500, through a private cash
placement of 850,000 new Class C shares aimed at Nordea Bank AB
(publ) ("Nordea"), each with a quota value of SEK 1.25, at a
subscription price of SEK 1.25 per share. The Class C shares do not
entitle to dividends and represent one vote each. Furthermore, the
Board of Directors has resolved upon immediate repurchase of all
850,000 Class C shares from Nordea at a price corresponding to the
subscription price.

The reason for derogation from the shareholders' pre-emption rights
and the purpose of the issue and the repurchase is to ensure delivery
of Class B shares to employees in the Group under the performance
based incentive programme that was adopted at the Annual General
Meeting of shareholders on 14 May 2008, by subsequently reclassifying
these Class C shares into Class B shares.

Apart from what is stated above Tele2 holds 4 098 000 Class C shares.

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Further information can be obtained from:
Lars Torstensson, Investor inquiries, Telephone: +46 702 73 48 79

Tele2 is one of Europe's leading alternative telecom operators.
Tele2's mission is to provide price leading and easy to use
communication services. Tele2 always strives to offer the market's
best prices. We have 24 million customers in 12 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 OMX Nordic Exchange since 1996. In 2007, we
had net sales of SEK 41.5 billion and reported an operating profit
(EBITDA) of SEK 6.3 billion. Please visit us at www.tele2.com