Cell Network forms venture-capital company for European e-commerce investments

Cell Network forms venture-capital company for European e-commerce investments Cell Network's Board of Directors has approved the formation of Cell Innovation Europe, a company that will make pan-European venture-capital investments in e-companies. In a first stage, Cell Network will allocate SEK 250 M for Cell Innovation, which will be a wholly owned subsidiary. The present ownership interests in so-called "dot.com" and "dot.corp" enterprises will be organized within Cell Innovation. The company will initially employ approximately 15 persons. Cell Innovation will focus on Internet-related solutions in the business- to-business segment. "In our business we often come in contact with e-commerce companies in an early stage of their development," says Marcus Bäcklund, President and Chief Executive Officer of Cell Network. "With Cell Innovation, we will be able to benefit from the synergies that arise between consulting operations and a venture-capital company. We are not building just a traditional time-based consulting company: we are creating a network of human capital in the new digital economy, in which we can utilize the atmosphere and entrepreneurial spirit in our organization, and the opportunities to create new flows of revenue." An increasing number of established companies are concentrating their business development in separate companies, so-called "dot.corp" enterprises. Cell Network is experiencing substantial demand from its large customers for expertise in the areas of both business development and innovative technology and design in order to build up these new dot.corp companies. Cell Network's broad experience in working with dot.com and dot.corp companies will give Cell Innovation great opportunities to enter into partnerships and ownership participations as well as participate actively in the development of business concepts in the new digital economy. Cell Network is involved in a growing number of projects in which revenue models that are more innovative than time-based contracts alone are being demanded. One approach is to offer special expertise and hours of consulting service in exchange for ownership participations. Cell Innovation will work closely with Cell Network's consulting operations. The existing engagements in the dot.com and dot.corp segment, including Dx3 and EyeOne, will in the future be handled by Cell Innovation. The cooperation will accelerate the Group's expansion in Europe. Synergies pertaining to new customers, as well as deeper knowledge of more industries, are also being created. "We want in this way to "capture" the rapidly growing market of Internet companies, and the opportunities that today's enormous entrepreneurship is providing in Europe," Marcus Bäcklund concludes. For additional information, please call: Marcus Bäcklund, President and CEO, Cell Network AB (publ) Tel.: +46-8 52 20 40 00 Arvid Liepe, Information Manager/Investor Relations, Cell Network AB (publ) +46-8 709 56 51 85. Cell Network AB (publ), an Internet company, is listed on the "O" List of the Stockholm Stock Exchange. It has operations in Sweden, Norway, Denmark, France, Spain, Great Britain, Germany, Switzerland and Malaysia. The Group is a leading Internet-consulting company in the field of business development through new digital media. Its objective is to become one of the world's leading companies in its market. Its customers include General Electric, Telia, Nokia, ABB, Volvo, Telenor, Renault, Saab, Bank Nationale de Paris, Ericsson, Braathens Malmö Aviation, AstraZeneca, Procordia, De norske Bokklubben, Nationalencyclopedia, Svenskt Flyg, Bonnier, Torget (Posten) and Electrolux Home. On-line addresses for information and press releases: www.huginonline.se or www.bit.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/17/20000317BIT00730/bit0001.doc http://www.bit.se/bitonline/2000/03/17/20000317BIT00730/bit0002.pdf