Cell Network establish Cell Management Consulting - and divest the losses of Cell Strategy

Cell Network establish Cell Management Consulting - and divest the losses of Cell Strategy Cell Network improves the business offering by establishing Cell Management Consulting, with competences on the highest level. The two management consultants Klaus Baumann and Michael Dirkes, both with previous top positions within Gemini Consulting, will manage the new business. Klaus Baumann will be appointed Chief Strategic Officer in order to further develop the strategic consulting business within the Group. At the same time Cell Network sells back Cell Strategy, a company attended with losses, to the founders Björnar Jensen and Peter Nordström for a consideration of SEK 95 million. Cell Strategy´s turnover for the first nine moths this year amounted to SEK 72 million with accrued losses of SEK -15 million. Financially the divestment results in an improved net result in the fourth quarter of approx. SEK 55 million and a liquidity increase of SEK 95 million. Moreover, the Group balance sheet will be affected since goodwill and other reserves will be reduced with approx. SEK 190 million. Cell Networks strategy towards profitability is to divest in operations without a future expected value growth. * For a long time we have been aware of the customers´ increased needs and demand for high level management consulting services. Therefore, we entered into a discussion with Klaus Baumann, one of the top consultants within management consulting. This is a big step for Cell Network in the value-chain, says Niklas Flyborg, President and CEO of Cell Network. Klaus Baumann, former member of the executive group of Gemini Consulting, with operative responsibilities for the German speaking markets and Eastern Europe, will be appointed Managing Director of Cell Management Consulting and Chief Strategic Officer in Cell Network, with the responsibility to further develop and implement the management consulting competencies. Michael Dirkes, whose former global responsibilities within Gemini Consulting included the Automotive and Manufactory sectors, will be appointed Operating Officer for Cell Management Consulting in Germany. Additionally a large number of international management consultants have been recruited in Europe in order to secure a fast development of Cell Management Consulting. For more information: Ellinor Bollman, Dir. Corporate Communications, Cell Network, phone +46 8 402 31 90, +46 70 3473714 Arvid Liepe, Dir. Investor Relations, Cell Network, phone: +46 8 402 3191, +46 709 565185 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/10/25/20001025BIT00400/bit0001.doc http://www.bit.se/bitonline/2000/10/25/20001025BIT00400/bit0002.pdf