Report from Extraordinary General Shareholders Meeting in Anoto Group AB (publ)

The Extraordinary General Shareholders Meeting in Anoto Group AB (publ) held on November 16th 2006 has passed a resolution on an incentive program for the Chief Executive Officer of the company. The Extraordinary General Meeting of the company unanimously resolved to issue in total 1,500,000 warrants to the Chief Executive Officer according to the proposal of the Board of Directors.

Each warrant shall give a right to subscribe for one new share in the company. The warrants shall be subscribed for and purchased at market value calculated with application of Black-Scholes model for valuation of warrants and subscription of new shares under the warrants shall be possible after approximately two years. The subscription price for new shares subscribed for under the warrants will be established after the Extraordinary General Shareholders Meeting and will be based on the trade in the company’s share during a ten day period immediately after the meeting plus a premium of 50%.

The new issue of warrants to the Chief Executive Officer may imply a dilution of approximately 1.2% of the shares and the votes in the company (not taking previously issued warrants in the company into account).