Cell Network's prospectus published

Cell Network's prospectus published Today the prospect regarding the new issue of shares in Cell Network is published. The prospectus will be sent out to the shareholders. It can also be ordered via Susanne Calissendorff, + 46 8 52 20 4009, susanne.calissendorff@cellnetwork.com It is also available on Cell Networks website www.cellnetwork.com In summary, the terms for the new issue are: · Each current share entitles to subscription of one (1) newly issued share. · The subscription price is SEK 3 per share. · The record day for participation in the new issue was May 21, 2001. · Trading with subscription rights will take place during the period May 28 to June 12, 2001, inclusive. · The subscription period is from May 28 to June 15, 2001, inclusive. In the prospectus CEO Niklas Flyborg comments: "During the current year we are focusing on regaining profitability through, for example, the action programme decided by the Board. We are doing this by focusing on Cell Network's core business and - in geographic terms - on operations in the Nordic area and Northern Europe. We will also further emphasise the importance of strategic expertise, combined with the best know-how in new technology and content. Our focus means that we will be a smaller but more focused Cell Network. A company that grows through the development of long-term, favourable relations with customers instead of acquisitions in new markets. It is important that we remain an agile organisation in the forefront of technical development and be capable of adjusting to more stringent market requirements. We have seen during the first quarter that the measures initiated in November last year have begun to have effect. A positive trend in profitability, utilisation rates and revenue per hour was reported in the first quarter interim report for 2001. In accordance with previous statements, the visibility in the market is, however, weaker, due among other factors to a more cautious purchasing pattern by certain major customers. Overall, we foresee a higher forecast uncertainty. Signals to date during the second quarter support this and point to a development in line with or somewhat weaker than the Company's forecast. Accordingly, and for the purpose of creating a more focused Cell Network, the decided measures are now being accelerated. All operations must report a solid profit as soon as possible. This will lead to divestments, closures and the merger of offices." The Board believes that the capital gained from the new share issue, assuming full subscription, combined with the action programme's financial effects, will be sufficient to finance the Company's operations until a positive cash flow is attained. For more information: Arvid Liepe, Dir. Investor Relations, Cell Network, phone: +46 (0)709 565185 Anders Lugn, Dir. Corporate Communications, Cell Network, phone: + 46 (0)70 608 87 80 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/23/20010523BIT00740/bit0002.doc http://www.bit.se/bitonline/2001/05/23/20010523BIT00740/bit0002.pdf