Board intends to propose new share issue

Board intends to propose new share issue The Board of Cell Network AB intends to propose a new share issue, with a right of preference for existing shareholders. The purpose is to strengthen the financial situation in order to be prepared for a potential major downturn in business activity or slump in the market. The trend in sales and profitability in the first quarter of this year has gone according to plan. Cell Network today has a sound, strong business, but the rapid changes in the market over the past year or so - coupled with uncertainty brought about by weaker economic trends - means that the measures already introduced to make the business more efficient and to improve profitability are to be intensified. This is being done in order to adapt the structure and business offer of the Group to the prevailing conditions in the market. The trend in sales and results during the first quarter of the year has been in line with the Management's expectations. During the course of this year, Cell Network has a number of financial undertakings to carry out in addition to its operational business. These involve the payment of additional purchase sums for acquisitions made and which are to be paid either in the form of shares or as cash. The additional purchase sums are dependent on certain targets having been met, which means that payment will fall due for companies which have enjoyed a favourable trend. At the same time, the Group has initiated the building up of a management consulting business at the highest level in Cell Consulting with operations in Germany. This business has very good prospects for the future, but will tie in capital during the build-up stage this year. In addition, a process is under way to compulsorily redeem the outstanding shares in former Cell Network. The redemption date and price have yet to be determined. Against the background of the above, the Board intends to convene an extraordinary general meeting within short. The extraordinary general meeting will deal with the proposed issue of new shares, the payment of the additional purchase sums for acquisitions previously carried out, as well as an incentive programme for key employees. Important dates: 11th April - publication of notice to attend ordinary general meeting 25th April - interim report for the first quarter of 2001 10th May - ordinary general meeting For more information please contact: Niklas Flyborg, President and CEO, Cell Network, tel. 0046 70-594 96 78 Arvid Liepe, Director of Investor Relations, Cell Network, tel. 0046 8- 5220 4053, 0709-565185 Ellinor Bollman, Director of Corporate Communications, Cell Network, tel. 0046 70-347 3714 ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download: