Millicom International Cellular SA Announces Strong Worldwide Operating Results for the Year Ended December 31, 1999 - Company Financial Information

Cambridge Telcom Report, Feb 28, 2000

Millicom International Cellular SA (Nasdaq: MICC), the global telecommunication investor, Tuesday announced results for the fourth quarter and year ended December 31, 1999.

Marc Beuls, MIC's President and Chief Executive Officer stated, "1999 was a year of great achievements for MIC. The Company made the move into the Internet environment by launching its ISP services in its Latin American markets and a secure e-commerce payment method GiSMo in Sweden. Further on, it committed to invest significant amounts in high speed wireless data networks in the UK and Latin America. These initiatives will start contributing to the Company's revenues in 2000. For the cellular telephony business, the Company's core business, we focused on driving revenue growth through a combination of greater market focus and increasing market penetration. These initiatives combined with our continued emphasis on cutting operating costs, generated significant revenue and EBITDA results across our major markets. The value of our investment in SEC increased substantially following the exponential growth of Tele2 Europe, and the availability of the additional funding. MIC's strong cash flow generation combined with the value of its interest in the publicly listed companies, NetCom AB and SEC SA provides the flexibility to further grow the existing business as well as to fund new projects."

FINANCIAL AND OPERATIONAL HIGHLIGHTS

* Excluding divested operations, MIC's cellular operations reported the following subscriber increases:

-- An increase of worldwide proportional cellular subscribers of 60% to 1,321,327 over the twelve months ended December 31, 1999;

-- An increase of worldwide gross cellular subscribers of 53% to 2,110,548 over the twelve months ended December 31, 1999;

-- Net new gross cellular subscribers in the fourth quarter 1999 were 195,084;

-- Net new gross prepaid subscribers during the three months ended December 31, 1999 totaled 185,877;

* In October, MIC announced the appointment of Mr David Worcester as Chief

Financial Officer;

* In October, MIC reduced its investment interest in NetCom AB from 6.64% to 5.77% raising approximately $34.8 million net of commission. In February 2000, MIC further reduced its interest to 4.9% raising approximately $65.2 million;

* During 1999, MIC's ownership interest in SEC was diluted from 35% to 29.6%, following NetCom AB's acquisition of 17.8% of SEC. As a consequence MIC has accounted for SEC on a proportional basis for the first 11 months of 1999. Effective December, SEC has been accounted for as an associate company;

* The market value of MIC's interest in the publicly listed companies, NetCom AB and SEC, increased from $709.3 million in 1998, to $1,484 million as at December 31, 1999.

* In October, MIC increased its equity ownership in Comcel in Guatemala from 47.0% to 55.0%;

* In 1999, MIC increased its equity ownership in Colombia from 32.5% to 41.63%;

* In December, MIC announced the launch of Internet services in Latin America;

* In December, MIC launched GiSMo, a secure payment method for e-commerce combining Internet and GSM telephones, in Sweden;

* Financially MIC, excluding Societe Europeenne de Communication ("SEC"), achieved:

-- Significant increase in cellular EBITDA for the fourth quarter, up more than 31% to $51.7 million, compared to the same period in 1998 (excluding divested operations);

-- Substantial improvement in cellular EBITDA margins to 42% in the fourth quarter of 1999 from 38% in the same period of 1998 (excluding divested operations);

-- 11% cellular revenue increase (excluding divested operations) in 1999;

-- Cellular EBITDA increase of over 28% (excluding divested operations) in 1999;

* SEC has achieved the following:

-- 2,931,173 active fixed-line subscribers at December 31, 1999, an increase of 288% over 1998;

-- Revenues of DEM607.1 million with operating losses before financing and taxes of DEM390.0 million for 1999;

-- SEC signed a franchise agreement with the leading Scandinavian Internet portal, Everyday.com;

-- SEC launched the wholly owned IntelliNet selling residential routers, and C(3) selling prepaid calling cards in France.