Revised accounting treatment of Honduras transaction

Revised accounting treatment of Honduras transaction

Stockholm, January 26, 2012 – Millicom International Cellular S.A. (“Millicom”)
(Stockholmsbörsen: MIC) announced today that it is restating its full-year
financial statements for 2010 as well as its interim quarterly financial
statements for the periods ended September 30, 2010 to September 30, 2011 to
reflect a revised accounting treatment of the put option provided to its local
partner in the July 1, 2010 Honduras transaction. The amended accounting
treatment of the put option and consequent restatements have no effect on
reported revenues, EBITDA, operating cash flow, dividends and guidance.

On July 1 2010, Millicom reached an agreement with its local partner in Honduras
whereby Millicom’s local partner granted Millicom an unconditional call option
for a duration of five years for his 33% stake. At the same time, Millicom
granted a put option for the same duration to its local partner, exercisable in
the event of a change of control of Millicom or the Honduras subsidiary. As a
result of the transaction, Millicom started to consolidate fully its subsidiary
in Honduras.

Following a reassessment of the accounting treatment of the Honduras
transaction, Millicom has retroactively recorded a liability for the put option
at July 1, 2010 of $737.4m, representing an estimate of the net present value of
the redemption amount of the put option at that date in accordance with IAS
32.23 and a corresponding decrease of shareholder’s equity. Millicom has also
recorded a financial expense/income for each subsequent reported period to
reflect the change in value of the put option liability in accordance with IAS
39. Such financial expense/income has impacted net profit negatively for 2010 by
$32m (less than 2% of reported net profit) and positively for the first nine
months of 2011 by $50.8m.

There is no change to the economic substance of the put option and accordingly
to its fair value, which is assessed as not material for each of the restated
reporting periods. In addition, this does not impact the full consolidation of
Millicom’s Honduras subsidiary from July 1, 2010.

Please find attached unaudited restated historical financial information as of
and for the year ended December 31, 2010 as well as for interim periods from
September 30, 2010 to September 30, 2011. Millicom expects to publish audited
restated financial statements for 2010 and 2011 on March 2, 2012 in its 2011
Annual Report on Form 20-F.

Contacts

Chief Financial Officer
François-Xavier Roger
Tel: +352 27 759 327

Investor Relations
Justine Dimovic
Tel: +352 691 750 479

Emily Hunt
Tel: +44 7779 018 539 

Visit our web site at www.millicom.com