HMS Networks AB to the Stock Exchange

Not for release, publication or distribution in, or into, the United States, Canada, Australia or Japan.

HMS Networks AB (”HMS”) – a Swedish growth company within industrial communication technology – has applied for a listing on the OMX Nordic Exchange in Stockholm. HMS is a world-leading supplier of communication technology for industrial automation. Revenue in 2006 amounted to SEK 227 million, of which more than 90 percent was generated outside of Sweden. During the past three years, HMS has achieved an average organic growth of 26 percent per year and during 2006 the company had an operating profit of 23 percent.

* The offer comprises a total of 7,140,155 shares in HMS, corresponding to 67.5 percent of the shares in the company, including an over-allotment option of 649,105 shares
* Offer price SEK 65 – 80 per share
* Application period for the general public October 9 – 17, 2007
* Expected first day of trading: October 19, 2007 on OMX, Small Cap, IT

In order to facilitate HMS’ continued development and expansion, the Board of Directors of HMS and its shareholders have decided to broaden the shareholder base by the sale of existing shares in HMS. The Board of Directors of HMS has applied for a listing of the Company’s shares on the OMX Nordic Exchange in Stockholm. The broadening of the shareholder base is carried out through an offer to acquire existing shares, which is directed partly to the general public in Sweden and partly to institutional investors in Sweden and abroad.

– A listing of HMS on the stock exchange has been under consideration for a long time. We now have the stability and organization required in order to be a successful listed company. A listing on the stock exchange is a hallmark of quality for us in our continued international organic growth, says Nicolas Hassbjer, CEO and founder of HMS.

– HMS has an interesting history. HMS is a Swedish high-tech company with production in Sweden and sales across the world. The company has grown strongly organically while at the same time maintaining high profitability and strong cash flow. Subsequent to achieving a listing on the stock exchange we will humbly continue on the same path with maintained focus on quality and profitable growth, says Urban Jansson, chairman of the Board of Directors in HMS.

HMS in short
HMS is a world-leading supplier of communication technology for industrial automation. Revenue in 2006 amounted to SEK 227 million, of which more than 90 percent was generated outside of Sweden. All development is conducted at the head office in Halmstad as well as the majority of the manufacturing. HMS has own sales offices in Tokyo, Beijing, Karlsruhe, Chicago, Milan and Mulhouse, as well as distribution partners in 32 countires. HMS has 145 employees and produces network interface cards and products for connecting industrial networks under the Anybus® brand. During the past three years, HMS has generated an average organic growth of 26 percent per year and during 2006 the company had an operating profit of 23 percent.

HMS develops products that enable communication between automation devices and industrial networks. Network interface cards are installed in automation devices that are sold by OEMs (Original Equipment Manufacturers) that are sold to end customers operating within industrial production. With the assistance of the network interface card, these automation devices can communicate between each other and with control systems via the industrial networks used in a factory. HMS’ business with network interface cards that are integrated into automation devices falls within the Embedded Products product area.

By leveraging its core competence, HMS has also developed products to enable communication between two dissimilar networks, so-called gateways, which enable information exchange between non compatible automation systems (falls within the Gateways product area). HMS’ products thus enable a complete interconnection and accordingly control and monitoring capability of production units within industrial automation.

HMS has a customer base of over 1,000 companies. The most important geographical markets are Japan, United States and Germany.

HMS’ financial goals are to generate sales growth of approximately 20 percent and an operating margin above 20 percent.

Facts of the offer
The offer comprises a total of 6,491,050 shares in HMS, corresponding to 61.4 percent of the shares and votes in the company and is carried out through the sale of shares by Segulah II L.P., Nicolas Hassbjer with companies and Staffan Dahlström with companies. In addition Segulah II L.P. has undertaken, if requested by SEB Enskilda, to sell an additional maximum of 649,105 shares, to cover a possible over-allotment in connection with the offer. Including the over-allotment option the offer comprises a total of 7,140,155 shares which represents 67.5 percent of the shares and votes in the company.

Subject to the offer being fully implemented and the over-allotment option being exercised in full, the total value of the offer will amount to between SEK 464 million and SEK 571 million which corresponds to a market capitalization of the company of SEK 687 – 846 million.

Subsequent to the listing the founders Nicolas Hassbjer and Staffan Dahlström will hold 15 percent respectively and thereby a combined ownership of 30 percent of the share capital and votes. Segulah II L.P. will not hold any shares if the over-allotment option is exercised in full.

Institutional investors in Sweden and abroad and the general public in Sweden are offered the opportunity to acquire shares in the offer. The offer price per share will be determined through a book-building procedure and is expected to be set within the range SEK 65 – 80. The price in the offer to the general public will not exceed SEK 80 per share. No commission will be charged.

SEB Enskilda is lead manager and sole book runner in the offer.

The prospectus is available to download on HMS’ web page, www.hms.se, and is available at HMS’ head office, Pilefeltsgatan 93-95 Halmstad, at SEB Enskilda, Kungsträdgårdsgatan 8, Stockholm, and at any SEB branch office in Sweden.

Preliminary timeplan
Prospectus made public October 8, 2007
Application period for the general public October 9 - October 17, 2007
Book-building period for institutional investors Up to and including October 18, 2007
First day of trading October 19, 2007

For more information please review investors.hms.se or contact:
Nicolas Hassbjer, CEO HMS: telephone: +46 35 17 29 02 nih@hms.se
Gunnar Högberg, CFO HMS: telephone: +46 35 17 29 95 guh@hms.se

The Offer is not intended for the general public, other than in Sweden. Neither is the Offer otherwise directed at such persons whose participation requires prospectuses, registration or other measures in addition to those that result from Swedish law. The prospectus may not be distributed in any country where distribution or the Offer requires any measures in accordance with the above or violates regulations in that country. Applications to acquire shares in contravention of the above may be considered invalid.

The shares being offered under the Offer have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or any provincial legislation in Canada and may not be offered for sale or sold, either directly or indirectly, within the USA or in Canada or to persons residing in these countries, except pursuant to an exemption from the registration requirements of the Securities Act or applicable Canadian provincial legislation.