AcandoFrontec AB intends to strengthen its leading position in the SAP area by acquiring the operations of e-motion technology

AcandoFrontec AB and the shareholders of e-motion have reached an agreement in principle whereby AcandoFrontec will acquire the operations of e-motion technology AB. The acquisition is an element in AcandoFrontec’s efforts to become the leading regional SAP consulting company in northern Europe. Another aspect of these efforts is AcandoFrontec’s plan to merge with Resco AB, which has a large part of its operations in the SAP area in Germany, Finland and Sweden. E-motion, a company of 28 employees, all of whom work with SAP, specializes in the technical aspects of SAP installations and SAP’s Netweaver integration platform. E-motion is a market leader in this segment. Both companies know each other well, having successfully cooperated since 2001, and complement each other in terms of competence. Together, the two companies will provide a complete customer offering. E-motion, with employees in Stockholm, Göteborg and Malmö, generated a turnover of approximately SEK 50 million in 2005 with a pretax profit of SEK 6 million. The company has a well-filled order book for 2006. The merger will be implemented by AcandoFrontec acquiring the operations of e-motion, including the working capital and fixed assets essential to the business. The purchase price consists of 2,740,000 Class B shares in AcandoFrontec. The acquisition is expected to have a positive effect on AcandoFrontec’s earnings per share in 2006. The acquisition is conditional on due diligence and the approval of an extraordinary general meeting of AcandoFrontec’s shareholders, which will be held on February 7, 2006. The customer offering AcandoFrontec is creating together with Resco and e-motion can be summarized as follows. A major focus has been placed on the SAP area, the world-leading enterprise system for large companies. The company will initially have over 200 SAP consultants in Sweden, Finland and Germany, with general agreements with a number of customers that want to enhance their operating processes and systems. A critical mass will be attained in every functional area: CRM, supply chain management (production, logistics, ordering), purchasing, product development, aftersales service and financial controls. Moreover, the company will achieve a market-leading position in Sweden in the technical side of SAP installations, particularly with regard to SAP’s Netweaver integration environment. Due to SAP’s new strategy and system architecture, future SAP projects will require greater competence on the part of management consultants, integration consultants and system development consultants (Java). The new group commands these competencies through its 210 management consultants, 50 integration consultants and 290 system development consultants (most in the Baltic countries). This mix of competencies and capabilities in all these critical areas is fairly unique. In other words, AcandoFrontec is well-positioned to gain a leading role in SAP in northern Europe. For more information, please contact Lars Wollung, President and CEO of AcandoFrontec AB Telephone +46-8-699 72 11 Kristian Ståhl, President of e-motion technology AB Telephone +46-40-66 10 360 www.acandofrontec.com Ticker symbol: AFAB AcandoFrontec is a consulting company that works together with customers to identify and implement performance improvements with the help of information technology. Measurable improvements are achieved by enhancing processes, organizations and IT solutions. Our consultants understand and are well-versed in information technology, but our passion is to improve our customers’ businesses. We are recognized for a focus on the bottom line and responsibility for ensuring that customers quickly receive the outcomes they expect. Customers should see AcandoFrontec as a local partner close at hand that can handle any project, whether simple or complex. The company has 530 employees at seven offices in Sweden. Through its ownership interest in the Estonian IT company WMG with 180 employees in five countries, AcandoFrontec can offer system development services in a large part of northern Europe. AcandoFrontec is listed on Stockholmsbörsen’s O-list under the ticker symbol AFAB.