Full Consolidation Of Operations In Honduras

STOCKHOLM, Sweden, July 1, 2010 (GLOBE NEWSWIRE) -- Millicom International Cellular S.A. ("Millicom") (Nasdaq:MICC) (Stockholm:MIC) today announces that Millicom and its local partner in Honduras have reached an agreement that gives Millicom full control of Celtel, its Honduran subsidiary. As a result of this agreement, Celtel will now be fully consolidated into the Millicom Group financial statements from Q3 2010. Previously, the results of the Honduras operations were proportionately consolidated.

Under the revised shareholders' agreement, the local partner has granted Millicom an unconditional call option for his 33% stake for the next five years. Millicom has granted a put option for the same duration to the local partner in the event of a change of control of Millicom.

While having no impact on reported net profit or Millicom's overall financial exposure to Honduras, the pro forma impact of this change on the Group financial statements for the year to December 2009 is to increase revenues by 6%, EBITDA by 7% and operating free cash flow by 9%.

As an appendix to our Q2 2010 earnings release on 20 July 2010, we will provide the pro forma Group income statements for the four quarters of 2009 and Q1 and Q2 2010, restated to reflect the full consolidation of Honduras. These will also be available to download in Excel format at www.millicom.com.

Millicom International Cellular S.A. is a global telecommunications group with mobile telephony operations in 14 countries in Asia, Latin America and Africa. It also operates cable and broadband businesses in five countries in Central America. The Group's mobile operations have a combined population under license of approximately 266 million people.

This press release may contain certain "forward-looking statements" with respect to Millicom's expectations and plans, strategy, management's objectives, future performance, costs, revenues, earnings and other trend information. It is important to note that Millicom's actual results in the future could differ materially from those anticipated in forward-looking statements depending on various important factors. Please refer to the documents that Millicom has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Millicom's most recent annual report on Form 20-F, for a discussion of certain of these factors.