Kreatel Communications AB announces that it has just successfully completed a new share issue which broadens its ownersh

Kreatel Communications AB announces that it has just successfully completed a new share issue which broadens its ownership and increases its capital base by SEK 105 million. An Initial Public Offering on a recognised leading Stock Exchange is the next objective. The telecommunications company, Kreatel Communications of Linköping, Sweden, has strengthened its capital base and broadened its ownership though a new share issue worth SEK 105 million. In addition to InnovationsKapital who are already shareholders, the new shareholders are ABN Amro (Alfred Berg), SEB Företagsinvest, Investment AB Bure and Allmänna Pensionsfonden Sjätte Fondstyrelsen. "The capital will be used to develop our new service gateways for broadband services and to increase our marketing activities by establishing our own subsidiary companies in three other European markets," says Lars Bengtsson, Managing Director of Kreatel Communications AB. "With the help of InnovationsKapital we have been able to attract a number of well known professional institutional investors as shareholders. The tempo is now speeding up and it is our aim to be ready for the stock exchange within a year," continues Lars Bengtsson. Kreatel is in a period of strong growth. Sales for 1999 were SEK 53.6 million, an increase of 86% compared to the-previous year when sales were SEK 26.8 million. The profit before tax increased during 1999 to SEK 2.1 million. The company had 42 employees and employed a further 20 consultants. This year the management estimates that sales will increase by 100% and that the number of employees will be in the region of 60-70. Management is predicting that the additional significant expenditure on new product development and European marketing activities may inevitably lead to a short-term reduction in profits. " Kreatel Communications AB represents the type of knowledge-intensive growth company that InnovationsKapital seeks to invest in and we are very pleased to continue investing, with the new shareholders, in the growth and development of the company," says Staffan Ingeborn, Managing General Partner at InnovationsKapital. Kreatel Communications AB is a rapidly expanding company that develops and markets telecommunications and datacommunications solutions in fixed networks, as well as mobile telephony and broadband networks. The aim is to establish the company as a leading supplier of service gateways. This sector is expected to grow rapidly as broadband communication becomes available to companies and households. Gothenburg 28 April 2000 For further information please contact: Lars Bengtsson, CEO Kreatel Communications (http://www.kreatel.se/) phone +46 (0) 13 36 76 01 or by mobile telephone +46 (0) 708 31 27 01 e-mail info@kreatel.se Staffan Ingeborn, Managing General Partner, InnovationsKapital (http://www.innkap.se/) phone +46 31 60 91 90 or by mobile telephone +46 705 83 14 34 e-mail staffan.ingeborn@innkap.se InnovationsKapital was founded in 1994 and is one of Sweden's leading venture capital firms for innovative early stage growth companies. The business is focused on investments within ICT and HealthCare dynamic sectors that are rapidly expanding and where Nordic research plays a leading role. The capital is managed in two funds and is provided by highly reputable Swedish and international institutional investors. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/28/20000428BIT00980/bit0001.doc http://www.bit.se/bitonline/2000/04/28/20000428BIT00980/bit0002.pdf