Millicom signs agreement to acquire Zanzibar Telecom

Stockholm, June 5, 2015 – Millicom (Stockholmsbörsen: MIC), today announced that
it has signed a Share Purchase Agreement to acquire an 85% stake in Zanzibar
Telecom (Zantel) from Etisalat Group.
Zantel is the leading mobile telecom operator on the islands of Zanzibar with
2014 gross revenues of $82 million and 1.7 million subscribers across Zanzibar
and mainland Tanzania. It operates 2G and 3G services over 545 network sites,
with 57MHz of spectrum(1) and has ownership rights to undersea fibre optic cable
capacity.  Zantel has an approximate 5% share of the Tanzania mobile market(2).
Millicom intends to retain and continue to operate the Zantel brand, while
delivering cash flow growth by leveraging technical and operational
efficiencies.

Under the terms of the agreement Millicom will pay the total cash consideration
of $1 dollar and assume total debt obligations of $74 million.  In addition
Zantel will have up to $32 million in net current liabilities at closing.
 Millicom expects the EBITDA of Zantel to reach $25 million through a
combination of bringing new products and services to the existing customer base
and delivering greater efficiencies. The agreement allows for an adjustment to
the total consideration if that target is not reached by the end of 2019.

Millicom has arranged with a leading international bank, the provision of a $100
million 5-year credit facility for Zantel.

The Government of Zanzibar will continue to own the remaining 15% of the shares
in Zantel. Millicom is looking forward to working with the Government of
Zanzibar as a partner and as a shareholder to continue to develop the exciting
opportunities for Zantel and its customers.

Tanzania is Millicom’s biggest market in Africa and the acquisition of Zantel is
a natural fit for Millicom’s strategy, strengthening our overall position in
Tanzania and delivering further growth prospects for the Group:

  · further leveraging the brand power of Zantel
  · delivering technical synergies including procurement and national roaming
  · improving network service quality and coverage
  · capitalising on the growing demand for mobile data and roll out of 4G
coverage
  · accessing further bandwidth capacity via the undersea fibre optic cable
EASSy
  · sharing Millicom best practice such as expanding its Mobile Financial
Services in Zanzibar to support financial inclusion

The transaction remains subject to regulatory approval by the Tanzanian
Communications Regulatory Authority and the Fair Competition Commission.

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(1) Zantel has 850MHz, 900MHz, 1800MHz and 2100MHz spectrum for Zanzibar and
mainland Tanzania

(2) Source: Tanzania Communications Regulatory Authority, December 2014
Press Enquiries
Tabitha Aldrich-Smith, Interim Communications Director
Tel: +44 7971 919610/ press@millicom.com

Investor Relations
Nicolas Didio, Director, Head of Investor Relations
Tel: +352 277 59125 (Luxembourg) / +44 203 249 2220 / investors@millicom.com
About Millicom

Millicom is a leading telecommunications and media company dedicated to emerging
markets in Latin America and Africa. Millicom sets the pace when it comes to
providing innovative and customer-centric digital lifestyle services to the
world’s emerging markets. The Millicom Group employs more than 16,000 people and
provides mobile, cable and satellite services to over 56 million customers.
Founded in 1990, Millicom International Cellular SA is listed on NASDAQ OMX
Stockholm under the symbol MIC. In 2014, Millicom generated revenue of $6.4
billion and EBITDA of $2.1 billion.

During its Q1 results in April, Millicom announced that its Africa operations
delivered a revenue growth of 16%, up from 13% in the last quarter. In Tanzania
Millicom reported strong customer growth in mobile (+508,000) delivering revenue
growth of 18% to $92 million with an EBITDA margin of 36%. LTE has also recently
begun roll out in Tanzania. Following this transaction, Millicom will reinforce
its market position in Tanzania.

About Zantel

Zantel (Zanzibar Telecom) is the leading data telecommunications brand in
Zanzibar and its largest internet provider. Its integrated telecom service
provide International Gateway services, Fixed, Mobile and data services through
its CDMA, GSM, 3G networks.