Exchange launches european expansion with acquisition of sweden's leading on-line fund supermarket - Fondex

EXCHANGE LAUNCHES EUROPEAN EXPANSION WITH ACQUISITION OF SWEDEN'S LEADING ON-LINE FUND SUPERMARKET - FONDEX The eXchange Holdings plc ('the eXchange') today announced it's first European acquisition. The eXchange will acquire 100% of the capital of Fondex (www.fondex.se), Scandinavia's leading online fund 'supermarket.' The initial consideration will be met through the allotment of shares in the eXchange at 229.9p per share, valuing the business at 300 million Swedish Krona (£21.65m). The total consideration for the acquisition includes a deferred consideration in eXchange shares up to a maximum value of 36.8 million Swedish Krona (£2.65m), at current market value. This will be paid in two instalments, to the executive shareholders of Fondex, subject to the achievement of a series of performance objectives on closure of fiscal years 2000 and 2001. The non-executive shareholders shall receive deferred consideration in call options on eXchange shares at a strike price equal to 459.8p per share upon signature. Fondex was founded by Fredrik Arnander in 1998 and launched in May 1999, backed by the leading Nordic venture capital firm IT Provider, and recently GE Equity. It is Scandinavia's first independent and leading online supermarket for fund distribution on the Internet. The range of mutual funds offered by Fondex represents over 70% of all funds in the Swedish market. In December 1999, Fondex launched its new online nominee account service, enabling customers to buy and sell funds through a Fondex account. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/02/28/20000228BIT00050/bit0001.pdf http://www.bit.se/bitonline/2000/02/28/20000228BIT00050/bit0002.doc