updated 9/9/2010 3:45:28 AM ET 2010-09-09T07:45:28

NEW YORK and STOCKHOLM, Sweden, Sept. 9, 2010 (GLOBE NEWSWIRE) -- Millicom International Cellular S.A. ("Millicom") (Nasdaq:MICC) and (Stockholm:MIC) today announces its intention to redeem in full the 2013 10% bond in December 2010. The plan is conditional on raising new financing within our operations of up to $400 million, which we expect to be completed in the next few weeks.

The par value of the bonds is approximately $455 million, and early redemption will incur a penalty of 1.65%, all of which will be paid out of cash balances within the Group. The redemption itself is expected to lead to earnings per share accretion of more than 5% in 2011.

Francois-Xavier Roger, CFO of Millicom, said:

"The redemption of the high yield bond is an important step forward in our financing strategy. This proposal, combined with other financing recently put in place, will reduce our effective cost of financing, extend our average maturity to more than three and a half years, strengthen our risk management and improve our tax efficiency.

"At the same time, we are maintaining a good level of liquidity to provide us with flexibility for any growth opportunities that arise, while creating significant value for shareholders by reducing the cost of that liquidity."

The Millicom International Cellular S.A. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7950


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