Frontec intends to shorten its fiscal year to end June 30th

Frontec intends to shorten its fiscal year to end June 30yh. In January, Frontec announced that it had decided to focus on eBusiness and consolidate its Technical IT Services operations in a separate company. For years, Frontec has developed high technology for leading industrial companies. Now all its competence in the Technical IT Services operating area has been brought together in a separate company with the aim of a listing on the Stockholm Stock Exchange. This separation creates the best opportunities for both businesses to benefit from strong market growth and actively take part in acquisitions and restructurings. Implementation is planned for the autumn of 2000 through a tax-free so- called Lex ASEA distribution to Frontec's shareholders. In order to facilitate such a distribution, Frontec will seek the approval of the Swedish tax authorities to shorten its fiscal year to the period January 1 to June 30, 2000 and is proposing that a conditional decision to that effect be voted on at the Annual General Meeting on May 16, 2000. Provided that the tax authorities approve the proposal and that other conditions for a decision on a Lex ASEA distribution and a stock market listing are met, the Board of Directors of Frontec will propose at the next Annual General Meeting, expected to be held in the autumn of 2000, that the shares in Technical IT Services be distributed to the shareholders of Frontec AB. Frontec Technical IT Services focuses on intelligent communication and is developing turnkey communication solutions for individuals and companies within mobile IT, telecommunications, intelligent homes, automotive and telecom. Operations are based on leading-edge expertise in wireless communications, the Internet, technical it systems development, embedded real-time systems, ASIC design, and testing and verification. Anders Eriksson, the former President of Frontec Nordic, is the President of the new company, which initially consists of around 300 consultants and is thereby the largest firm in its field in the Nordic region. Frontec eBusiness focuses on turnkey eBusiness solutions with extensive competence in areas such as change management, business systems and application integration. Together with its clients, Frontec eBusiness is creating new business opportunities with the Internet as a marketplace and distribution channel. More information: Olof Englund, President of Frontec, at +46 70 585 22 60, Anders Stensson, CFO, +46 70 568 71 21, or Carl-Erland Schröder, +46 8 470 22 62. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/18/20000418BIT00940/bit0001.doc http://www.bit.se/bitonline/2000/04/18/20000418BIT00940/bit0002.pdf