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Millicom International Cellular S.A. 03 July 2008

Company News Alert

Decline in global markets leads to depreciation in stock price

NASDAQ BUY We believe the recent depreciation in the NASDAQ common stock is due an overall decline in global
DirectInaccess
markets. addition, to
the the full movement
downward report free in theof charge
stock at a broader downward trend in
price follows
Common the NASDAQ 100 Index (NASDAQ). Nevertheless, as outlined in our 1Q 08 update report going
http://www.iirgroup.com/researchoracle/viewreport/show/20172
forward we expect overall revenues to register strong growth driven by robust growth in revenues from
Stock Central America, South America, Asia and Africa. In addition, although we expect EBITDA margin to
decline due to an anticipated increase in selling & marketing expenses, we expect operating margin to
increase due to an anticipated decline in depreciation and amortization expenses, as a percentage of
Ticker: MICC revenues. Thus, in light of our strong fundamental outlook for the common stock we believe it
Target price: US$126.53 represents an attractive investment opportunity at current levels. As a result we upgrade our NASDAQ
common stock rating from a HOLD to a BUY.
Current price: US$94.42
Price change We will reassess the NASDAQ common stock rating for Millicom International Cellular S.A.(MICC) in our
since last report: (22.19%) next full update report.

SDR HOLD Although the current price supports a BUY rating we do not anticipate a change in our SDR rating as
we continue to expect a significant negative currency impact on the SDR over the next 6-12 months.
Ticker: MICsdb.ST
Target price: SEK695.94
Current price: SEK585.00
Price change
since last report: (20.30%) We will reassess the SDR rating for MICC in our next full update report.

Supervisor: Jinesh Joshi

Analyst: Devang Bhatt Investment horizon - short term actionable trading strategies
Editor: Shem Pennant This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months.
If this report is provided to you by your broker under the Global Settlement, you may now also access (free of
Global Research Director:
charge) the short term trading outlook that we publish from time to time for this issuer, looking at the
Satish Betadpur, CFA coming 5-30 days for readers with a shorter trading horizon. These are available on-line only at
www.researchoracle.com.
Next news due:
2Q 08 results, 22 July 2008
In our 1Q 08 update report, dated 15 May 2008, we rated the common stock a HOLD based on our
fundamental valuation of MICC’s NASDAQ common stock, with a target price of US$126.53,
representing a 4% potential upside. Since then the NASDAQ common stock has witnessed a 22.19%
decline closing at US$94.42 on 02 July 2008.

We believe the current decline in the stock price is primarily attributable to weak market sentiments
prevailing in the global markets. Furthermore, we believe the movement in the common stock price
was also partly driven by broader market movement – the NASDAQ closed at 1816.15 on 02 July
2008 registering a decline of 9.07% since our previous update report dated 15 May 2008 (the stock
moves in tandem with the NASDAQ, with a beta of 1.28). Nevertheless, as outlined in our 1Q 08,
update report, going forward we expect overall revenues to register strong growth driven by strong
growth in subscriber-base from Central America and South America. In addition to anticipated strong
revenue performance from Central America and South America, we expect Management’s focus on
improving its network infrastructure in markets such as Asia and Africa to drive revenue growth.
Furthermore, considering the relatively low mobile penetration levels in Africa, we expect strong growth
in subscriber-base in the region over the next two years. In addition, although we expect EBITDA
margin to decline due to an anticipated increase in selling & marketing expenses, we expect operating
margin to increase due to an anticipated decline in depreciation and amortization expenses, as a
percentage of revenues. Thus, in light of our strong fundamental outlook for the common stock we
believe it represents an attractive investment opportunity at current levels.

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