Update on the offer from REMEC - Allgons Board retracts its recommendation

Update on the offer from REMEC - Allgon´s Board retracts its recommendation On 13 December 2000, the Board of Allgon issued a press release updating shareholders on the offer from REMEC and on Allgon's trading. The Board noted the announcement by REMEC on 7 December 2000 extending the tender offer period to 12 January 2001 and indicated that it would provide a further update to shareholders in early January in order to review the attractiveness of the REMEC offer in light of the changed market environment. At close of business on Friday 5 January 2001, REMEC's share price stood at US$ 9.3125, which is 70 per cent below the level on the announcement of the offer. As a result, the share-for-share offer currently values Allgon at SEK 54 per share, as opposed to the original offer level of SEK161 per share. Under the terms of the offer, all shareholders on the register at 6 October 2000 have the right to tender up to 500 shares for SEK161 in cash. Despite the fact that there is commercial logic in a combination between Allgon and REMEC, the sharp and sustained fall in REMEC's share price has reduced the value of its offer to a level below that which Allgon's Board feels able to recommend to shareholders. It is therefore with regret that the Board of Allgon, which has been advised by Morgan Stanley Dean Witter and Erneholm & Haskel, announces that it is today withdrawing its recommendation of the offer. In providing advice to the Board of Allgon, Morgan Stanley Dean Witter and Erneholm & Haskel have taken into account the Board´s commercial assessment. Shareholders who have tendered their shares are reminded that they have the opportunity to withdraw their acceptance by submitting a written notice to Hagströmer & Qviberg Fondkommission AB. The Board believes that Allgon has a strong independent future. Furthermore, the board remains confident in the ability of the company to compete effectively in the attractive growth markets of wireless communications and to deliver value to its shareholders. For more information please contact: Gunnar Bark, Chairman of the Board, Allgon AB Phone: +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 http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/01/08/20010108BIT00690/bit0001.doc http://www.bit.se/bitonline/2001/01/08/20010108BIT00690/bit0002.pdf