Allgon acquires Wireless Solutions

Allgon acquires Wireless Solutions Allgon has acquired Wireless Solutions Sweden AB which develops products and systems for wireless communications. The company works with a wide technology base like GSM, W-LAN and Bluetooth for applications in industry, office and home. Wireless Solutions will also contribute with expertise within Allgon's current business such as development of products and services for third generation systems for wireless communications like EDGE and WCDMA. - This acquisition is completely in line with our strategy to offer our customers systems and more complex solutions further up the value chain. We will now be able to better and quicker take advantage of the business opportunities that the faster and faster growth within both wireless speech and wireless Internet and other data communications offers, says Jan Edhäll, CEO and President of Allgon. The company has been acquired for SEK 75 million and payment will be made as follows: * New issue of 383,000 Class B shares in accordance with the authorization of the Board of Directors by the Annual General Meeting on March 16, 1999 * Cash payment of SEK 17.5 million. The goodwill amounts to approximately SEK 85 million and will be written off during 10 years. The acquisition will be made on December 31st, 1999. Subject to favorable development of the company's business an additional purchase sum might be paid during the period until year 2003. The intention is that such additional purchase sum will be paid with a new issue of Class B shares. The maximum number of shares that might be paid amounts to 533,000. The acquisition is expected to have a negative impact on Allgon's earnings with approximately SEK 25 million during year 2000 and thereafter have a more favorable impact. As from year 2002 the acquisition is expected to positively affect earnings. The company's sales during year 2000 are excepted to have marginal impact on Allgon. Wireless Solution was established in 1997 and has 25 employees. The company is situated in Stockholm, Sweden. For further information, please contact: Jan Edhäll Telephone: +46 8 540 822 31 President and CEO, Allgon AB Bengt Broman Telephone: +46 8 540 822 63 President, Allgon System ABor +46 708 20 63 67 Claes Silfverstolpe Telephone: +46 8 540 822 32 Chief Financial Officer, Allgon AB 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 comprises systems and components for base stations, repeaters and transmission, as well as antenna solutions. Allgon's invoiced sales amounted to SEK 1,725 million in 1998, with 901 employees as of year-end. Allgon was founded in 1946. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/21/19991221BIT00710/bit0001.doc http://www.bit.se/bitonline/1999/12/21/19991221BIT00710/bit0002.pdf