TRANSCOM ASSESSING TAX EXPOSURE IN ONE EU COUNTRY

Luxembourg, 12 October 2011 - Transcom is assessing its tax exposure in
one EU jurisdiction and plans to provision up to €14.1 million in Q3
2011. A Supreme Court appeal will be filed in the coming months.

The company was recently notified that the Court of Appeal has issued an
adverse ruling regarding a FY2003 tax dispute in one of the EU
jurisdictions where it operates.

In December 2008, in this jurisdiction, the tax auditor reassessed
FY2003 through to FY2006. This tax audit resulted in a total tax
reassessment notification of €27.3 million (including penalties and
accrued late payment interest).

The Group believes its tax position overall and in this jurisdiction in
particular, to be fully compliant with EU law and regulation. Since
2009, the Group has been in dispute with the tax authorities with
respect to this tax reassessment. The total net amount provided in 2009
to cover this tax exposure amounted to €1.5 million.

Management, together with its legal advisors, consider that the whole
reassessment is not justified from a legal standpoint, and even more so
in regards to the Withholding tax amounts claimed (€11.7 million)
because the EU regulation grants Withholding tax exemption on royalties.

Transcom management considers its case to be robust and has decided to
lodge an appeal in front of the Supreme Court. However, following the
recent notification of this adverse ruling, Transcom had to reassess its
provision and is considering increasing the existing tax provision by
€14.1 million in the quarter ended September 30, 2011.

Management is uncertain about the timing and the ultimate financial
exposure that may result out of the resolution of the ongoing tax
litigation in this jurisdiction. Only FY2003 and FY2004 cases are
currently in front of the courts. FY2005 and FY2006 are not yet judged.

The short term cash exposure resulting from the current rulings is
estimated to be €8.8 million. Transcom is requesting to pay in
installments over 72 months, which would reduce the cash outlay to €0.4
million per quarter. Should Transcom ultimately succeed in its Appeals,
these amounts would be paid back.

Transcom will host a conference call at 11.00 am CET (10:00 am UK time)
today, October 12, 2011. The conference call will be held in English.
Dial-in information

To ensure that you are connected to the conference call, please dial in
a few minutes before the start in order to register your attendance.

Luxembourg +352 3420808245

Sweden +46 858536853

United Kingdom +44 2073650698
United States +1 7183541168 (East coast)
United States +1 4089160666 (West coast)

Passcode: 11503328#

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For further information, please contact:

Pablo Sanchez-Lozano, President and CEO +352 27 755 000

Aïssa Azzouzi, CFO +352
27 755 021

Stefan Pettersson, Head of Investor Relations +46 70 776 80 88

TRANSCOM ASSESSING TAX EXPOSURE IN ONE EU COUNTRY

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