Communiqué from the Annual General Meeting of shareholders in Effnet Group AB

Communiqué from the Annual General Meeting of shareholders in Effnet Group AB The Annual General Meeting of shareholders in Effnet Group AB, whose shares are quoted on the "New Market" List of the Stockholm Stock Exchange, was held on 13 April, 2000. The Meeting adopted the proposals of the Company's Board of Directors, and approved the following decisions: 1) Decision on amendment of the Company's Articles of Association: (i) §3: The object of the Company's business is to develop network technology and network products, and to own and manage shares and other securities, as well as other activities compatible therewith. (ii) §4: The Company's share capital shall consist of no less than SEK 20 million and no more than SEK 80 million. (iii) §7: 1-2 auditors with or without deputies, or one registered auditing firm are appointed at the Annual General Meeting for the period until the end of Annual General Meeting held in the fourth financial year after the auditor(s) is (are) elected. (iv) §10, subs. 6: Presentation of the annual report and audit report, as well as, where appropriate, the consolidated financial statements and audit report on the consolidated financial statements. (v) §10 subs. 7a): on adoption of the profit and loss account and the balance sheet, as well as, where appropriate, the consolidated profit and loss account and consolidated balance sheet. 2) Decision to increase the Company's share capital by SEK 23,424,536.25, from SEK 2,602,726.25 to SEK 26,027,262.50, via a bonus share issue to be performed by transferring SEK 23,424,536.5 from the share premium reserve to the share capital. The bonus issue will be carried out by raising the nominal value of each share in the Company to SEK 2.50. The provision on the nominal value of shares in the Company, stipulated in §5 of the Articles of Association, shall be as follows: "The nominal value of shares in the Company shall be SEK 2.50 each". 3) Decision on a share split, in which five new shares, each with a nominal value of SEK 0.50 will replace each existing share, valued at a nominal SEK 2.50, in the Company (five-for-one share split). The provision on the nominal value of the shares stipulated in §5 of the Articles of Association shall be as follows: "The nominal value of shares in the Company shall be SEK 0.50 each". Information on the time and date of the share split will be communicated via a press release at a later date. 4) Decision on the issue of debentures linked with options to purchase no more than 1,500,000 shares (after the share split). The right to purchase debentures with share options shall fall to a wholly owned subsidiary, with that subsidiary being both entitled and obliged to sell the share options - after detaching them from the debentures - in the manner specified below, and to retain the share options in order to secure costs in connection with synthetic options issued to personnel abroad. Debentures shall be issued at a price corresponding to the nominal value of the shares. Payment for debentures purchased shall be made within one week after purchase. Debentures shall fall due for payment within one month of issue. Each option shall entitle the holder to purchase one (1) new share in the Company (after the share split). The price for purchase of new shares shall be SEK 1,080 before the split (SEK 216 after the split). The subsidiary shall - to the extent that the share options are not intended to secure costs in connection with synthetic options issued - sell the share options to employees and other key people in the Group, at which point the price of the share options will be determined by the Board, following a market valuation which shall be carried out by an impartial valuation institute. 5) Decision to authorize the Board, no later than during the period up to the next Annual General Meeting of the Company, to approve the issue of no more than ten million shares (after the share split), on one or several occasions, in the form of a non-cash issue, set-off arrangement or otherwise in accordance with certain conditions. 6) Decision to authorize the Board, no later than during the period up to the next Annual General Meeting, to approve the issue of new shares for payment in cash, or in the form of a non-cash issue, or otherwise in accordance with certain conditions, and in such an issue to be able to deviate from the priority rights of the shareholders. It shall be possible for this authorization to be used for the purpose of acquiring, via a non- cash issue, shares outstanding and share options in EffNet Holding AB in accordance with the current undertaking (in which context it is noted that the purchase price for such a share issue shall be set on a par with that applying to the share options in EffNet Holding AB in accordance with the undertaking furnished by the holder). Tomas Althén, Sven-Åke Bergkvist, Svante Carlsson, Stephen Pink, Norman Rasmussen and Mats Olsson were re-elected to the Board. At the statutory Board meeting immediately after the Annual General Meeting, Svante Carlsson was re-elected Chairman of the Board. Ernst & Young AB was appointed as the Company's auditor for the remainder of the mandate period (3 years). For further information, please contact Tomas Althén, CEO, Effnet Group AB (publ) on (Tel.) +46-708-15 16 15, or Lars Lundeborg, CFO, on (Tel.)+46- 708-99 86 03. Effnet develops, markets sells and distributes network products and network technologies designed to resolve bottlenecks in communications via the Internet, thereby creating maximum benefit to the customer. Effnet markets its technology in three ways: in the form of own-brand products, via OEM agreements and through licensing agreements to other operators in the network sector. During 1999, Effnet evolved from a specialist development company into a commercial operator in the network market. The Company is now entering a phase where marketing and sales are at the centre of focus. Effnet's long-term goal is to become one of the leading world players in solving current and future bottlenecks in Internet communications. Today, Effnet operates in four locations: Stockholm, Luleå, Boston and Mountain View, California. Shares in Effnet Group AB are quoted on the "New Market" List of the OM Stockholm Stock Exchange. The Group has 59 employees. To find out more about Effnet, please visit our Web site at: http://www.effnet.com/ ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/26/20000426BIT01370/bit0001.doc http://www.bit.se/bitonline/2000/04/26/20000426BIT01370/bit0002.pdf