Annual report and accounts 2008

We aim to build enduring relationships with our customers by understanding and anticipating their needs. Today, our customers around the world enjoy and have come to expect an affordable, accessible and available mobile service, embodied by the Tigo brand. We value the reputation that our brand has earned and the trust our customers place in it and we endeavor to enhance this reputation by continually improving the products and services that we offer.

In 2008, we continued to drive down prices and reload values which, together with innovative promotions, perpetuated the affordability of our services. We added 129,000 points of sale to our distribution network and implemented our Distribution Management System in a number of markets in our efforts to improve accessibility. In terms of availability, we ended the year with 13,910 cell sites, up 41% from the end of 2007.

Since our foundation in the early 1990s, Millicom has observed the highest standards of business ethics and integrity and this commitment is evident in our Code of Ethics. As an organization, we strongly support aggressive yet equal competition and our position as a leading operator of mobile telephony services gives us the leverage to encourage fair legislation and the correct application of telecommunications regulations in our markets, ultimately benefiting the customer. As a NASDAQ listed company, Millicom complies with the US Foreign Corrupt Practices Act (“FCPA”) which prohibits payments to foreign officials for the purpose of obtaining or keeping business and requires compliance with its accounting provisions, including the keeping of records that accurately reflect all transactions and the maintenance of an adequate system of internal controls.

Our intention is to work only with suppliers, subcontractors and other third parties who share our responsible business practices as stated in our Supplier Code of Conduct which was revised in 2008.

We have developed a corporate position on six issues affecting our business and we are developing programs in support of these positions across all operations. These issues are: Radio Frequency Fields, Child Labor, Electronic Waste, Energy and Climate Change, Responsible Use of Phones and Visual Pollution.

We are conscious of our impact on the environment and are committed to reducing our energy consumption. We participate in the Carbon Disclosure Project (CDP), which will help us progressively to measure, report and reduce our carbon dioxide releases. We are particularly concerned with the following factors connected with climate change:

• Regulation
• Changes in the climate system
• Technological innovations
• Shifts in consumer attitude and demand

CDP recognizes that the contribution to Global Greenhouse Gas (GHG) emissions and climate change varies across business sectors and that within sectors companies are at different stages in the development of their strategies to address climate change. CDP therefore sets the following four objectives, which we aim to include systematically in our business plans:

1. To identify strategic risks and opportunities and their implications.
2. To determine actual Greenhouse Gas emissions.
3. To determine performance against targets and plans to reduce GHG emissions.
4. To determine responsibility and a management approach to address our impact on climate change.

Millicom has a history and a reputation for responsible and proactive citizenship in our markets, gained through participation in rural development and by giving back to local communities which contribute to our growth. Our initiatives so far have been centered on education, building infrastructure, poverty and support in the aftermath of natural disasters. In 2008 Tigo in Laos provided financial and physical support (e.g. manpower in building sand walls) as part of the Vientiane Flood Relief Activities in October, following the biggest floods in Laos for forty years, caused by swelling of the Mekong River. In Sri Lanka, several low-lying areas were also affected by floods in 2008 with nearly 300,000 families made homeless. A staff initiative was launched to collect money and Tigo matched the amount collected by staff, so that essential items could be distributed to 125 families in the three most affected villages.

Under the theme ‘Access today’s world through education’ and in keeping with the young persona of the Tigo brand, Millicom will continue to support education and initiatives for the young as its primary concern. We believe that education is an essential tool for achieving sustainable development as when children have the opportunity to learn, they can use their skills to build a path to a brighter future for themselves.

Millicom has joined the Solvay Business School Corporate Fellowship Programme in sponsoring the Philippson Chair for Sustainable Human Development. Every year, the Millicom Fellowship Programme offers a working position of 2-3 months in one of Millicom’s operations to a final year engineering student.

For Millicom, the theme of Education also encompasses health promotion in countries where many diseases, such as AIDS, still claim a staggering number of victims each year. In Senegal for example, a caravan called “Triple Sensibilization” commutes between the most remote regions, going through all the big cities educating the local people and making direct donations. We also target young mothers in various health centres and maternity wards with support materials and literature on health, immunization therapies, and food supply.

Today Millicom has centralized and standardized procedures and criteria for the selection of community service projects and donations in order to ensure Group-wide alignment in prioritizing investment in education and by 2010, 80% of Millicom’s spending on community initiatives will fall under this theme.

We believe that “talent is the engine behind the creation of all value” and we aim to recognize and develop individual talent to ensure that our 7,000+ employees reach their potential within our organization. Our corporate environment promotes and encourages our staff’s continuous learning and personal growth, as well as their active participation in local community initiatives. This in turn fosters the Tigo team spirit and ensures that everyone can contribute to the success of the Company.

In keeping with the Tigo spirit, Millicom seeks diversity amongst its employees in order to foster creativity. Among the 70+ employees at our headquarters in Luxembourg more than 25 nationalities are represented. At the same time, Millicom seeks to build local capabilities. Local staff represent 97% of our employees across our 16 mobile operations and in Ghana and Sri Lanka the figure rises to 99% and 100% respectively. We offer all of our employees the opportunity for training through the "Tigo Talent School" programs and foreign assignments.

We also make continuous efforts in HR management to be considered employer of choice in our markets. In Paraguay, for example, Tigo has become the nation’s preferred employer amongst young professionals.

Millicom aims to generate shareholder value by seizing opportunities in the mobile telephony sector in emerging markets, building on our current business and focusing on high growth segments whilst achieving the highest standards of integrity, customer satisfaction and employee motivation. Millicom adheres to the standards and requirements for foreign private issuers of the Sarbanes-Oxley Act of 2002, which legislates for corporate governance, financial disclosure and the practice of public accounting in the interest of equity investors.

Overall, our governing values lead us to strive continuously to improve our business practices, to provide outstanding services to our customers, to sustain profitability in the long term and to engender pride in the company we work for.