New Issue for Continued Expansion of Glocalnet

New Issue for Continued Expansion of Glocalnet The Board of Directors of Glocalnet announced today that the company plans to carry out a new share issue of a maximum of 775,000 shares. The issue will be directed towards existing shareholders, according to the principle of one new share for three existing shares at a price of SEK 35 per share. The principal owners, Catella IT and Glocalnet's Chief Executive Officer, Stefan Krook and family guarantee the issue of all shares of series B. The share issue, requiring the authorization of the Board at the Annual General Meeting on April 20, 1999, will supply the company with between SEK 25 - 27 million in funds. "Glocalnet is currently undergoing a dynamic phase of expansion. We anticipate our customer base in Sweden to grow five times. Our growth potential on the European market also looks very promising. In order to take advantage of these great possibilities in the best way, we will need additional funds. Further strengthened by new interesting partner agreements, such as the supplier agreement with Cisco, Glocalnet would now like to implement a smaller share issue. The company is, furthermore, planning on obtaining significant international funds during the second half of 1999. International investors and large banks have already shown strong interest in a potential offer," says Stefan Krook. The Board of Director's proposal for authorization is available at Glocalnet's office. A decision regarding authorization will be made by the General Assembly at the company's Annual General Meeting on April 20, 1999. "We are implementing this offer as a preferential rights issue so that all existing shareholders will have the chance to take part. At the same time, the principal owners, i.e. my family and I along with Catella IT, guarantee the share issue," comments Stefan Krook. Stefan Krook, together with family, currently own 339,000 shares corresponding to 14.58 per cent of the capital and 24.75 per cent of the votes in Glocalnet. Catella IT owns 335,100 shares corresponding to 14.40 per cent of the capital and 4.9 per cent of the votes. "During the last few months, Glocalnet has strengthened its position as Europe's leading, independent IP-based telecom operator. The cooperation with Birka Energi, which is now beginning to bear fruit, also confirms that Glocalnet's strategy of reaching the end customer together with strong partners is a prescription for success. It is not difficult to justify further investments in Glocalnet's growth considering the substantial expansion predicted for the telecom business. If Glocalnet's marketing focus in Sweden continues to develop favorably, we will increase the pace of market establishment already begun in the rest of Europe. This is why we plan to raise a significant amount of capital during the second half of 1999," says Urban Lindskog, Chief Executive Officer of Catella IT and member of the Board of Directors of Glocalnet. Glocalnet's Chairman of the Board of Directors, Erik Hallberg, has accepted a leading operative position at another company also within the telecom business and has, therefore, given notification that he intends to leave his post as Chairman following the Annual General Meeting. "My new position will not be in direct competition with Glocalnet, but I would like to concentrate fully on my new assignments and have, for this reason, chosen to leave the company. It has been a great privilege taking part in shaping Glocalnet; from the start at the drawing table to what it is today. The company is now ready to take the next step of becoming commercially successful. It is a strong company that is going to grow and become even stronger," says Erik Hallberg. Glocalnet is a next-generation telecommunications group. Glocalnet is operating one of the largest dedicated pan-European Voice-over-IP networks. Using this platform, it produces a variety of services - ranging from pure wholesale to full-fledged "telco in a box" solutions - that are marketed to service providers. These affiliated service providers include Stockholm Telecom and Glocalnet Greece. Glocalnet's headquarters are located in Stockholm, Sweden. The Company's stock is listed on the Reuters page of Aragon, a Swedish investment bank. For further information please contact: Stefan Krook Chief Executive Officer Tomas Crutze Chief Financial Officer Glocalnet AB Hälsingegatan 40 113 43 Stockholm Tel: 08 - 566 34 100 Fax: 08 - 566 34 141 E-mail: info@glocalnet.com Hemsida: www.glocalnet.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/04/14/19990414BIT00160/bit0001.doc http://www.bit.se/bitonline/1999/04/14/19990414BIT00160/bit0002.pdf