Tele2 Interim Report January-March 2007

Stockholm - Wednesday, April 25, 2007 - Tele2 AB ("Tele2") (OMX
Nordic Exchange: TEL2 A and TEL2 B), Europe's leading alternative
telecom operator, today announced its consolidated results for the
first quarter 2007.

- Operating revenue for Q1 2007 grew by 5 percent to SEK 12,837
(12,243) million
- EBITDA in Q1 2007 increased by 22 percent to SEK 1,488 (1,221)
million
- Net profit/loss for Q1 2007 amounted to SEK 82 (143) million
- Earnings per share, after dilution, for Q1 2007 amounted to SEK
0.28 (0.40)

- Mobile revenues in Q1 2007 increased by 29 percent to SEK 5.2
billion
- Continued excellent performance in Russian mobile operations with
revenues and EBITDA in Q1 2007 both growing strongly. Russia now has
a customer base in excess of 7.1 million
- Strong broadband intake during Q1 2007, adding a total of 254,000
new broadband customers
- Fixed telephony EBITDA margin improved to 14 (11) percent in Q1
2007

Lars-Johan Jarnheimer, President and CEO of Tele2 AB comments:"We are  in a  stage of  focus. During  2007, we  expect to  see  the
majority of our revenue being generated within our own infrastructure
based mobile and  broadband services,  as a  result of  our shift  in
focus from  resold fixed  line telephony  to our  own  infrastructure
based services.  These services  have grown  to 41  percent of  group
sales in Q1 2007  from 32 percent  in Q1 2006 and  the trend will  be
accelerated as a result of our current strategic review.

Our operational results, with EBITDA growing 22 percent year on year,
show that  our  increased  focus on  mobile  and  broadband  services
continues to pay off and that our investments in infrastructure  lead
to higher margins for Tele2. To be able to defend higher investments,
overall profitability must improve.

Our mobile operations  in the  Baltic region and  Russia continue  to
show healthy  operational performance.  Strong net  customer  intake,
despite tough competition, is combined with good margin  development.
This quarter, I  am especially  pleased with our  development in  the
Nordic market area, which shows that there is still growth  potential
in the mobile segment.

Our broadband business continued  to produce impressive net  customer
intake numbers, with  254,000 new  customers in  Q1. Southern  Europe
represents the  majority of  our new  broadband customers,  and I  am
particularly pleased with the continued strong intake in Italy. Scale
is  important,  and  we  are  getting  closer  to  critical  mass  in
geographies with a sound potential for growth and profitability.

Fixed line EBITDA  margins improved during  the quarter. However,  we
experienced a  higher  level  of competition  from  primarily  mobile
operators leading to a larger net customer outflow and stronger  ARPU
decline than expected. As we  have pointed out earlier, it  continues
to be  important for  Tele2 to  move into  more infrastructure  based
operations. The recent  developments highlight this  rationale as  we
move swiftly towards mobile and  broadband services based on our  own
infrastructure."

Tele2 is  Europe's  leading  alternative  telecom  operator.  Tele2's
mission is  to provide  cheap  and simple  telecoms for  everyone  in
Europe. Tele2 always strives  to offer the  market's best prices.  We
have 29 million  customers in  22 countries. Tele2  offers fixed  and
mobile telephony, broadband, data network services and cable TV. 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 2006  we had operating  revenue of SEK  50.3 billion and  we
reported a operating profit (EBITDA) of SEK 5.7 billion