Annual report and accounts 2008

Notes contents

Notes to the consolidated financial statements
As of December 31, 2008, 2007 and 2006

6.Discontinued operations and assets held for sale

Discontinued operations

The results of discontinued operations for the years ended December 31, 2008, 2007 and 2006 are presented below:

• (i) Figures for 2007 and 2006 have been adjusted to include Millicom operation in Sierra Leone.
• (ii) In 2008, an impairment of $11 million was booked to align the carrying value of Millicom operation in Sierra Leone to its estimated fair value less cost to sell.
• (iii) In 2006, following the sale of Pakcom (see note 5), Millicom reversed an impairment on network equipment for an amount of $6 million.
• (iv) In 2006, following the sale of Millicom Peru S.A. (see note 5), Millicom reversed an impairment on a license for an amount of $2 million.

The cash (used) provided by discontinued operations for the years ended December 31, 2008, 2007 and 2006 is presented below:

• (i) Figures for 2007 and 2006 have been adjusted to include Millicom operation in Sierra Leone.

The following table gives details of non cash investing and financing activities of discontinued operations for the years ended December 31, 2008, 2007 and 2006:

• (i) Figures for 2007 and 2006 have been adjusted to include Millicom operation in Sierra Leone.

Millicom Sierra Leone Limited

In December 2008, Millicom decided to dispose of its business in Sierra Leone, Millicom Sierra Leone Limited, and, as a result, this operation has been classified as a discontinued operation. In addition as at December 31, 2008 the assets and liabilities of Millicom Sierra Leone Limited are disclosed under the captions “Assets held for sale” and “Liabilities directly associated with assets held for sale”. Millicom operation in Sierra Leone was previously disclosed under the segment “Africa”.

Pakcom Limited and Paktel Limited

In November 2006, Millicom decided to exit from its remaining business in Pakistan, Paktel Limited, and, as a result Paktel Limited and Pakcom Limited, which was sold in June 2006, have been classified as discontinued operations. In addition, as at December 31, 2006, the assets and liabilities of Paktel Limited were disclosed under the captions “Assets held for sale” and “Liabilities directly associated with assets held for sale”. The sale of Paktel Limited was completed in February 2007. Pakcom Limited and Paktel Limited were both previously disclosed under the segment “Asia”.

Comvik International (Vietnam) A.B.

Millicom has an 80% equity interest in Comvik International (Vietnam) AB (“Comvik”) which had entered into a Business Cooperation Contract (“BCC”) with a government-owned company to operate a nationwide cellular GSM network in Vietnam (Mobifone). The BCC expired in May 2005 and Millicom has been negotiating with the Vietnamese government to convert the BCC into an equity ownership interest since before the expiry of the BCC. During the third quarter of 2006, Millicom concluded that it was unlikely that an acceptable agreement would be reached in the near future and therefore classified Comvik as a discontinued operation from that date. Millicom has no other continuing operation in Vietnam. As of December 31, 2006, Comvik was presented as an abandoned operation. As such its assets and liabilities were included under the relevant individual balance sheet captions. All the remaining assets and liabilities were realised and settled in 2007. Comvik International (Vietnam) A.B. was previously disclosed under the segment “Asia”.

Other

Other operations have been classified as discontinued operations in 2006, consisting mainly of Millicom Peru S.A. All these operations were divested in the second half of 2006 (see note 5).

Assets held for sale

During the fourth quarter of 2008, Millicom began the marketing activities to sell its operation in Sierra Leone and therefore it was classified as a disposal group held for sale as of December 31, 2008. As of that date, Millicom measured all assets and liabilities of Millicom Sierra Leone at the estimated fair value less cost to sell, resulting in an impairment charge of $11 million, recorded in December 2008.

The major classes of assets and liabilities classified as held for sale as at December 31, 2008 and 2007 are as follows: