The Board of Directors of Anoto Group AB (publ) Proposes Incentive Programme for the Chief Executive Officer

The Board of Directors of Anoto Group AB (publ) has resolved to propose that the Extraordinary General Shareholders Meeting of the company resolve on an incentive program for the Chief Executive Officer of the company.

To implement the incentive program, the Board of Directors proposes that the Extraordinary General Meeting of the company resolve to issue in total 1,500,000 warrants to the Chief Executive Officer. 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 proposed 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).

The new issue is not expected to imply any significant costs for the company nor have any effect on any material key ratios.

This program is intended for the period up until the Annual General Meeting 2009 and the Board of Directors does not intend to propose any new incentive program for the Chief Executive Officer before the Annual General Meeting 2009.

Shortly, the Board of Directors will give notice convening the Extraordinary General Shareholders Meeting intended to be held on November 16, 2006.