The offer from LGP Telecom Holding AB undervalues Allgon AB

The offer from LGP Telecom Holding AB undervalues Allgon AB The Board of directors of Allgon (the "Board") has considered the offer made by LGP Telecom Holding AB ("LGP") on 22 August 2000 for the share capital of the company. The Board wishes to make clear that in its opinion, which is fully supported by its financial advisors, Morgan Stanley Dean Witter and Erneholm & Haskel, the offer fails to reflect the value of the company's business and prospects. Allgon is a company. .active in highly attractive growth segments of the telecom market. Allgon is focusing on the rapidly growing areas of wireless communications, including the exciting Bluetooth and Wireless LAN technologies .with world leading products. Allgon is with its broad product portfolio one of the world's leading suppliers of key mobile communications infrastructure equipment and mobile handset antennas .and with cutting edge product development. Allgon is investing approximately SEK 360 million in R&D this year to strengthen further its leading position, reflected in its strong patent portfolio in order to build a stronger competitive advantage for the future. The Board can see the attractiveness of Allgon to LGP, but is also aware that LGP has decided to proceed with a unilateral offer. LGPs offer. .significantly undervalues Allgon. LGP's offer barely reflects the value of Allgon's highly successful Systems division and ignores the significant potential of its other business areas .leads to a decreased focus. An acquisition by LGP will decrease Allgon's focus on advanced telecom products by introducing LGP's substantial exposure to contract manufacturing .is opportunistic and lacks a cash component. LGP exploits the downturn in Allgon's profitability mainly arising from heavy investment in future growth and specific issues in Mobile Communications which are being robustly addressed. The shareholders are not being offered cash, but only shares in LGP, that have risen by over 430 per cent during the last twelve months and have limited liquidity. The Board is actively exploring alternatives in order to achieve the most favourable outcome for Allgon shareholders and other stakeholders. Throughout this process the Board will continue to inform the shareholders and will also provide additional financial information. Stockholm September 6, 2000 The Board of Directors of Allgon AB (publ) For more information please contact: Gunnar Bark, Chairman of the Board, Allgon AB Phone: +46-8-587 206 60 eller +46-708-402 187 Jan Edhäll, President and CEO, Allgon AB Phone: +46-8-540 822 31 Allgon's business concept is to develop, manufacture and market radio-based solutions and other products for wireless telephony and data communications. Allgon's product range consists of antenna systems for infrastructure in mobile telephone networks; filters, combiners and similar products for base stations; repeater networks; microwave equipment; mobile telephone antennas; wireless local networks and Bluetooth products. Allgon's invoiced sales amounted to SEK 2,136 million in 1999. The number of employees at the end of 1999 amounted to 1,249. Allgon was founded in 1946. ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download: