Bredbandsbolaget consolidates investments and reduces pace of expansion. Shareholders support new, focused plan

Bredbandsbolaget consolidates investments and reduces pace of expansion. Shareholders support new, focused plan. Bredbandsbolaget's sales success has led to a rapid expansion and significant investments in network and household installations that have required substantial amounts of capital. This, in combination with the recent developments in the capital markets, has required Bredbandsbolaget to reduce its pace of expansion. Given the current situation in the capital markets, the shareholders, while contributing additional capital and ensuring continued operational development, would like to see a larger portion of the company's future funding to be generated from revenues. Marketing efforts will be intensified in order to substantially increase penetration of the large, existing installed base of households and to deliver value to customers via the Bredband Hemma product. The organization, resources and personnel requirements will be reviewed and consolidated in parallel with the company's move to new, efficient offices in Marievik, Stockholm. "The shareholders continue to completely support the company's business plan. Under the current capital market conditions, the company is aligning its expansion plans with the capital, which is available. The company has developed a new plan, which entails consolidation of previous investments and reduction of the company's pace of future investment. The shareholders support management's plan and are contributing capital to the company's continued funding requirements. Adjustments will occur in cooperation with customers and personnel." says Jan Stenberg, Chairman of the Board of Bredbandsbolaget. For further information, please contact: Ulrika Andersson, Director of PR/Information, Bredbandsbolaget, 08-406 95 00, 0733-81 99 02 Gunnar Sjögren, Bredbandsbolaget, 08-406 95 00, 0733-81 90 32 About Bredbandsbolaget B2 Bredband AB is a leading broadband communications company providing 10 megabits per second, fiber-optic network access, and related broadband services primarily to residential as well as small- and medium-sized business customers. Bredbandsbolaget is currently rolling out an extensive fiber-optic network linking key metropolitan areas in Sweden and Norway. Within these metropolitan areas, B2 is extending fiber-optic networks to customers' buildings and switched Ethernet networks within customers' buildings. In cooperation with its content and service partners, including NTL and Cisco, B2 are planning in the future to launch services such as IP television, video-on-demand and pay-as-you-use services. These services will be offered in the future through its specially designed interactive customer broadband interface, or portal. Bredbandsbolaget operates in Sweden, Norway and Denmark and intends to expand to other markets. Bredbandsbolaget was founded in 1998 with its network installed in 103.000 homes at January 31, 2001. NTL is the largest investor and other major investors include Framfab, Intel, Investor, and the Carlyle Group. Website: ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download: