Final Report January-December 1999

Final Report January-December 1999 * Net sales totalled KSEK 2,272 (KSEK 75). * An operating deficit of KSEK - 49,805 (KSEK - 17,822 ) was recorded. * A deficit of KSEK - 48,493 (KSEK - 17,633 ) after financial items is reported. * The Group had 52 employees, an increase of 25. * Effnet's ROC PCI-Card product was the winner of the prestigious European Information Societies Technology Grand Prize, amounting to 200,000 Euros. * In November, a five-for-one share split was carried out. * In the fourth quarter, a VAR (Value Added Reseller) agreement was signed with HSD Consult GmbH, one of the leading system integrators and Internet Service Providers in the German market. * In December, a directed share issue aimed at several Swedish and international institutional investors was carried out. The issue, which was heavily over-subscribed, resulted in a capital infusion of KSEK 364,000 net, after costs. At year-end the Technology Partner Program (TPP) for licensing of Effnet's technology in the USA was launched. Effnet develops, markets, sells and distributes network products and network technology designed to resolve bottlenecks in Internet communication, thereby creating maximum benefit to the customer. Effnet markets its technology in three ways: as own-brand products, under OEM agreements and via licensing the Company's technology to other operators in the network industry. During 1999, Effnet changed from being a specialist development company into a commercial operator in the network market. The Company is now entering a phase in which the focus is on marketing and sales. Effnet's long-term goal is to become one of the world's leading operators in resolving present and future bottlenecks in Internet communication. Today, Effnet is represented in four locations; Stockholm and Luleå in Sweden, and Boston and Mountain View, California, in the USA. Effnet Group AB's shares are listed on the Nya Marknaden (New Market) list of the OM Stockholm Stock Exchange. The Company has 52 employees. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/02/15/20000215BIT00880/bit0001.doc http://www.bit.se/bitonline/2000/02/15/20000215BIT00880/bit0002.pdf