InnovationsKapital searching for new golden egg: invests SEK 6 million in young fiber optics firm

InnovationsKapital searching for new golden egg: invests SEK 6 million in young fiber optics firm InnovationsKapital is taking a stake as an active owner in the business enterprise Pangea Fiber Optics of Stockholm. With the in German active business angel, Jan Hummel, InnovationsKapital will invest SEK 12 million, which represents a quarter of Pangea's share capital. Pangea Fiber Optics operates in the same field as Altitun and Qeyton Systems, the fiber optics companies that reported record hikes in value a few weeks ago when they were sold to the American giants, ADC Telecommunication and Cisco. InnovationsKapital will, together with Jan Hummel, take a seat on the Board and will initially invest SEK 6 million via its second fund, InnKap II. If Pangea progresses as planned, InnovationsKapital will participate in future financing activities. . "Pangea Fiber Optics is a very attractive fiber optics company which has significant potential and is now in its start-up phase. Independent analysts expect the market for the company's products to be worth around USD 15 billion by 2003," says Staffan Ingeborn, Managing General Partner of InnovationsKapital. Investment during the start-up of a business entails large risk, but also considerable opportunity, as illustrated by the investment InnovationsKapital made two years ago in Altitun. When Altitun was sold a few weeks ago, InnovationsKapital's SEK 15 million investment, corresponding to 15% of the share capital, was worth around SEK 1 billion. Pangea Fiber Optics develops equipment based on fiber optic technology for monitoring WDM systems within the broadband sector of the telecoms industry. The company is a spin-off from the Institute for Optics Research in Stockholm (now called Acreo). There are still links between the two organisations. "Teaming up with InnovationsKapital means that we have an owner with financial strength who can also contribute expertise and contacts to boost our future development," says Raoul Stubbe, Managing Director of Pangea Fiber Optics. Göteborg, Sweden, 5 June 2000 InnovationsKapital For further information, please contact Staffan Ingeborn, staffan.ingeborn@innkap.se, tel.+46(0)31-60 91 91 or +46(0)705-83 14 34 and Adel Asseh, adel@pangea-fiber-optics.se,tel. +46(0)8-750 68 90 or +46(0)70-450 31 02 InnovationsKapital is one of Sweden's leading venture capital companies for knowledge-intensive and innovative Nordic growth companies in their early stages in the Information & Communication Technology and Health Care sectors. Total capital amounts to SEK 550 million, divided between two funds, which include investors from reputable Swedish and international institutions. Long experience, links with researchers and a well-developed network give InnovationsKapital access to unique know-how, which it uses to assess the development and growth potential of businesses. This experience is exploited in one of the industry's most highly developed investment processes. Further information can be obtained at: www.innkap.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/06/05/20000605BIT00150/bit0001.doc http://www.bit.se/bitonline/2000/06/05/20000605BIT00150/bit0002.pdf