Observer publishes the conditions for rights issue

Not for distribution in the US, Australia, Japan or Canada. The Offer does not apply to persons whose participation requires further prospectuses, filings or other measures in excess of those implied by Swedish law. Observer publishes the conditions for the previously announced rights issue In accordance with its earlier announcement and subject to the approval of the General Meeting, the Board of Directors of Observer AB has today decided on a rights issue with preferential right for current shareholders. The rights issue is implemented in order to prepare Observer financially for a continued expansion. In 2001, Observer acquired six companies, all financed with existing funds and increased borrowing. This financial strength of Observer significantly improved the company's opportunities to successfully accomplish the acquisitions. The considerable expansion and the increased borrowing have however limited Observer's ability to take on further acquisitions. It is Observer's opinion that the rights issue substantially prepares the group financially for a continued expansion through acquisitions with existing funds and through increased borrowing. The fragmented market and attractive conditions for acquisitions are expected to create opportunities for new acquisitions. In addition to complementary acquisitions in existing markets, Observer has future plans to establish a presence in other key European markets and in the long-term also in Asia. The new share issue will be directed towards current shareholders and include no more than 11 137 144 shares (subject to such increase of the share capital and number of shares as may subsequently be effected as a consequence of subscriptions for shares through the exercise of warrants and conversion into shares of convertible debentures), at a nominal value of SEK 1.50 each, in summary with the following conditions: · Each five existing shares entitles to a subscription of one new share · The subscription price is SEK 37 per share · The record date for participation in the rights issue is March 26, 2002, consequently the last date for trading in the Observer shares including subscription rights is March 21, 2002 · Trading in subscription rights will take place during the period April 3-16, 2002, inclusive · The subscription period is from April 3-19, 2002, inclusive · Prospectus and issue statement will be distributed to Observer's shareholders beginning on March 28, 2002 The new share issue is with preferential right for current shareholders and does therefore not result in any dilution for these shareholders as long as they subscribe for their share. Extra General Meeting As a consequence of the Board of Directors' decision on a rights issue, subject to approval by the Extra General Meeting as stated above, the Board of Directors of Observer has decided to convene an Extra General Meeting on March 18, 2002. For further information regarding the Extra General Meeting please refer to the separate notice to the Extra General Meeting. Carnegie is financial adviser to Observer. For further information, please contact: Robert Lundberg, President and CEO, telephone: +46 8 507 410 10, e-mail: robert.lundberg@observergroup.com Anders Lundmark, CFO, telephone: +46 8 507 417 23/+46 70 333 29 77, e- mail: anders.lundmark@observergroup.com Per Blixt, Sen VP Corp Communications, telephone: +46 8 507 410 12/+46 70 549 28 08, e-mail: per.blixt@observergroup.com Facts about Observer AB Observer AB, quoted on the O-list (Attract 40) of Stockholm Stock Exchange, operates in the field of business and communication intelligence, with media and market monitoring, analysis and communication evaluation, target group identification and distribution of information for PR and IR purposes. Observer AB has an annual turnover of nearly SEK 1.9 billion and around 2,700 employees in the U.S, UK, Sweden, Canada, Germany, Norway, Finland, Denmark, Portugal, Ireland, Estonia, Latvia and Lithuania. This press release is also available online at www.observergroup.com and at www.waymaker.net. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/03/01/20020301BIT00490/wkr0001.doc http://www.waymaker.net/bitonline/2002/03/01/20020301BIT00490/wkr0002.pdf