Millicom Consolidates El Salvador Subsidiary

Millicom International Cellular has recommenced consolidating Telemovil, its operation in El Salvador, following the successful resolution of the shareholder disputes with its local partners. Telemovil is the leading provider of cellular services in El Salvador with approximately 460,000 total subscribers as at June 30th 2003.

Marc Beuls, President and CEO of Millicom International Cellular commented: "The El Salvador operation has exciting potential and with some US$100 million of revenue in 2002 it is an important business in the region. Over time we will own 100% of the company, however this will not impact upon Millicom's budgeted corporate cashflow. There will now be the opportunity to grow this operation aggressively and to improve EBITDA margins towards the group average of over 50%."

On a pro forma basis Telemovil today has approximately US$8 million of cash and bank loans of US$30 million."

Posted to the site on 24th September 2003