Connova TVX AB and X2 Media Group AB agree on collaboration in the newspaper printing and publishing segment

CONNOVA TVX AB AND X2 MEDIA GROUP AB AGREE ON COLLABORATION IN THE NEWSPAPER PRINTING AND PUBLISHING SEGMENT ConNova TVX AB and X2 Media Group AB signed an agreement on 23 April to cooperate in the newspaper and publishing sphere. The agreement is a result of the agreement in principle signed by the two companies on 9 March. Background information Media companies are increasingly reporting declining sales of advertising space. The 1990s have been exceptional, with strong growth in the amount of media space available (ranging from commercial television to the Internet) and an abundance of new newspapers and periodicals with plans to support themselves by selling advertising space. Media companies are facing a changed situation, in which they need to be paid by their readers/viewers/users and to forge strong relationships with them. In order to do this, business processes need to be developed and, above all, there need to be players in the market offering efficient ways of processing media content. The business that has been most successful in its attempts to get paid for its content is the newspaper and periodical business, and it has done so primarily by offering individuals the opportunity to subscribe. Subscriptions, both ordered in advance and interactive, will be the primary business model for obtaining payment for content services. One example is music companies that publish music catalogues on the Internet and then offer customers the opportunity to subscribe to the music. X2 Media Group and ConNova TVX have developed a service package for media companies that provides cost-effective management of subscribers to newspapers and magazines. These services allow media companies to provide added value to their most valued customers - the ones who pay in advance for content - in a cost-effective manner. During the past few years, Swedes have been able to order subscriptions over the Internet at the Tidningar.se web site, which is owned and run by the X2 Media Group. The company has signed contracts with the majority of Swedish publishing houses, providing them with a completely unique sales channel. Unfortunately, the processing of customer orders has presented a serious challenge to most companies. The X2 Media Group has constructed an entirely digital process for subscription ordering and processing, whereby the publishing houses receive information about their subscribers in digital format. The majority of the publishing companies have found this to be an effective way of creating relationships with their subscribers, but internal processes have prevented them from making the best of the opportunities X2 makes available. Now publishing houses can address the internal processes in a new way by using the service package X2 is offering together with ConNova TVX. The Service Together with ConNova TVX, an advanced service is now available to publishing houses, allowing them to outsource all subscription management, from the order to customer service and support. By using TVX's solid background in cultivating customer relations, publishing houses can offer increased value in the form of rapid service and complete control over all information about their subscribers. Publishing houses are given the opportunity to implement campaigns, select target groups, and obtain status reports and documentation that facilitate financial control over the Internet. It should be possible for all publishing houses to know exactly who a subscriber is and be able to direct a personal offer to that individual. As an extended service, the publishing houses will also know enough about the subscriber to be able to tailor the content of the newspaper/periodical to the customer's needs. The cooperation between the X2 Media Group and ConNova TVX is unique, because X2's knowledge of the newspaper and publishing businesses is complemented by ConNova's longstanding experience of managing customer databases and of the customer care process involved in selling content services. The companies have created a unique opportunity for publishing houses to utilise modern technology and benefit from the solid relationship they have with their customers. For ConNova, this agreement marks a strategically planned breakthrough for its services, outsourcing and BizManager product to a new business segment outside the television business. About X2 Media Group AB X2 currently operates in a niche of the media business, focusing on printed media and using subscriptions as a business model. X2 owns and operates the web site Tidningar.se, where consumers can order subscriptions to approximately 600 newspapers and periodicals. In the course of informal discussions with several publications during 2000, X2 identified the need for someone to provide Service Agency services and the ability to use the Internet for collecting customer data, reporting, data processing for customer analysis, and campaign design. About ConNova TVX AB ConNova TVX AB has been managing assignments for international pay-TV customers since 1992. ConNova TVX AB is a pan-European customer service offering turnkey solutions for the distribution of various pay-TV channels. Since the summer of 2000, ConNova TVX AB also has a customer in the e-commerce segment. ConNova TVX AB provides all the services provided by a contact centre. For more information please contact: Christian Ekström, CEO, ConNova Group AB (publ.) tel: +46 141 23 76 01, + 46 705 38 08 84 Torbjörn Ullman, CFO, ConNova Group AB (publ.) tel: +46 141 23 76 85, + 46 702 13 78 40 Ann-Sofie Rehnström, MD, ConNova TVX tel: +46 141 20 39 02, +46 706 00 52 65 Nicklas Bergqvist, CEO, X2 Media Group AB tel: +46 8 30 43 14, +46 708 49 65 59 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/08/20010508BIT00150/bit0002.doc http://www.bit.se/bitonline/2001/05/08/20010508BIT00150/bit0002.pdf