Mandator strengthens capital base by SEK 113 million through fully secured issue

Mandator's year-end report published on 20 February 2004 stated that the Board intended to strengthen the company's balance sheet through a new share issue. On 18 March 2004, the Board decided to implement a new share issue with preferential rights for the company's shareholders, on the condition that the extraordinary shareholders' meeting on 5 April 2004 approves the decision. The issue is fully secured through subscription commitments from major owners and underwriting guarantees. The issue is expected to provide the company with SEK 112.8 million before deductions for issue expenses.

In addition, the Board also decided, in accordance with the authorisation provided by the extraordinary shareholders' meeting on 12 March 2004, on an immediate directed share issue comprising 3,500,000 shares. The right to subscribe to these shares will be provided to Mandator's largest owner, Den Norske Bank (DNB). In return, DNB agrees to refrain from participating in the preferential rights issue to a corresponding degree.

The purpose of the share issues is to strengthen Mandator's balance sheet and liquidity, which have worsened during 2004 as a result of, among other factors, extended payment times for several of Mandator's larger clients. Mandator's operations report a positive earnings trend. The raising of capital will provide an opportunity to reach final settlement concerning certain superfluous rented offices and to implement limited optimisation measures within the group. The raising of capital will also create the stability required for Mandator to be able to actively participate in the continued consolidation of the industry.

The Board's assessment is that a reduction in the level of financial risk in the company is advantageous to the shareholders. The restructuring that has been decided is assessed to be able to reduce financial and other costs within the group by at least SEK 20 million per year.

The Board also decided to bring forward publication of the interim report for the period January-March 2004 to 28 April and to postpone the annual general meeting to 13 May.

Conditions and preliminary timetable for preferential rights issue

Number of share to be issued 112,781,694
Issue price SEK 1
Conditions One current share entitles owner to subscribe to two new shares
Record day 13 April 2004
Prospectus publication date 13 April 2004
Subscription period 19 April - 4 May 2004
Account day for preferential rights subscriptions 4 May 2004

Conditions for the directed share issue

Number of share to be issued 3,500,000
Issue price SEK 1

For further information, please contact:

Niklas Flyborg, President and CEO Mandator, Phone; +46 (0) 705-949678
Robert Karlsson, CFO Mandator, Phone: +46 (0) 709-565141