Observer conducts previously announced directed new share issue comprising of 4 million shares

The Board of Directors of Observer AB (publ) has on November 3, 2005 decided to increase the company’s share capital through a directed new share issue of 4 million new shares. The new share issue was announced on November 1. The shares are subscribed for by Carnegie Investment Bank AB for further distribution to a limited number of institutional investors in Sweden and abroad. The decision was based on the authorization which the Board of Directors obtained at the AGM held on April 28, 2005. The new share issue will increase the share capital with SEK 6 million to SEK 111,291,977 and the number of shares by 4 million to 74,194,651 shares. The subscription price was SEK 27 corresponding to approximately 97.5 per cent of the volume weighted average share price for the Observer share on November 3, 2005. The newly issued shares correspond to approximately 5.4 per cent of the shares and votes in Observer after the new share issue. In total the company receives, before costs, SEK 108 million through this new share issue. The reason for the new share issue and deviation from the shareholders pre-emptive right is to finance part of the acquisition of the broadcast monitoring company Multivision and to keep a high financial readiness for further expansion. The acquisition of Multivision was announced on November 1, 2005. Observer AB (publ)