Frontec completes the Acquisition of Upec Data

Frontec completes the Acquisition of Upec Data FRONTEC has today received more than 90 percent acceptance from UPEC's shareholders. Frontec will therefore call for an extraordinary General meeting to be held in the beginning of November to close the transaction. FRONTEC is acquiring all of the outstanding shares of UPEC, a privately-held company, for 1 583 003 Frontec Series B shares by means of a directed new share issue, resulting in a 6,3% dilution. The acquisition is a step towards Frontec's objective of dominating Technical Consultancy Services in Sweden and a means of further strengthening Frontec's position in Application Integration. The acquisition will immediately have a positive effect on profit and earnings per share. For 1998, the impact on revenue and profits will be marginal as consolidation will take place late in the year. More information: Olof Englund, tel 08 470 22 60 eller Bertil Persson, tel 08470 22 20 (fronteceng.doc)