NEW YORK and STOCKHOLM, Sweden, March 31, 2005 (PRIMEZONE) -- Tele2 AB, ("Tele2") (Nasdaq:TLTOA) (Nasdaq:TLTOB) (Stockholmsborsen: TEL2A and TEL2B) the leading alternative pan-European telecommunications company, today announced that it has completed the process of integrating UTA and Tele2 in Austria, according to plan. The merger has created Austria's leading alternative telecom operator in both the corporate and the residential markets. This new and efficient organization enables Tele2 to continue to provide the best prices in the market.
Cost synergies, from areas including rationalization of overlapping functions and cross-selling, as well as from centralized functions and centers of expertise in various areas within the Tele2 Group, such as IT and technical operations, are expected to amount to MEUR 30 on an annualized basis as of 2005. The integration process has meant that the number of personnel in Austria is reduced by some 130.
Integration costs are estimated to amount to around MEUR 30 in 2005.
Lars-Johan Jarnheimer, CEO of Tele2 said: "We are pleased that the merger has gone well. We now have the opportunity to realize the anticipated synergies, that will benefit both our existing and our new customers."
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Tele2 is Europe's leading alternative telecom operator. Tele2 always strives to offer the market's best prices. With our unique values, we provide cheap and simple telecom for all Europeans every day. We have close to 28 million customers in 24 countries. We offer products and services in fixed and mobile telephony, Internet access, data networks, cable TV and content services. Our main competitors are the former government monopolies. Tele2 was founded in 1993 by Jan Stenbeck and has been listed on Stockholmsborsen since 1996. The share has also been listed on Nasdaq since 1997. In 2004 we had operating revenue of SEK 43 billion and reported a profit (EBITDA) of SEK 6.6 billion.
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