Intentia in good position to take advantage of next major phase when e-business b

Intentia in good position to take advantage of next major phase when e- business becomes c-business The market for enterprise applications is moving toward a new phase. Business-to-business will continue to develop explosively in the next few years. This situation will require companies to increase their investments in enterprise applications that include integrated e-business solutions. Companies that do not invest, run the serious risk of being forced out of business within a few years. Björn Algkvist, President and CEO of Intentia International AB commented at Intentia's annual general meeting, "In a few years, everyone will be talking about c-business, collaboration on a business to business level, rather than e-business." Intentia is in the perfect position to take advantage of the developing situation. Our knowledge and experience, broad customer base and comprehensive integrated solutions provides us with a competitive advantage when the "e" in e-business turns into a "c." In his speech at the annual general meeting, Algkvist described the strong forces which are currently changing the prerequisites for the entire enterprise application industry, "In the past few years, the market has been in what can be referred to as the hype phase. So far, the emphasis has been on meeting the demands of business-to-consumer needs. Web consultants have focused on custom tailored solutions for their customers and these consultants have been favorites on the stockmarkets. We have seen a great deal of "selling by fear," commented Algkvist. 2000 is an important turning point In all probability, the year 2000 marks an important turning point- a new phase when a dramatically substantial market for e-business solutions emerges. Algkvist states, "What I'm talking about is the foundation of the international economy, the global corporations and millions of companies whose business activities are related to either manufacturing or sales. Some people turn their nose up at this market and refer to it somewhat disdainfully as the "old economy." Algkvist continues, "Those companies who do not dramatically increase their investment in e-business solutions as an integrated part of an enterprise system run the risk of being forced out of business in just a few years. E-collaboration applications will be a key phrase that you'll hear often. These applications will be solutions that radically increase the efficiency level for business-to-business collaboration. E- collaboration applications must be built upon standardized application systems that can guarantee effectivity at a reasonable cost. This type of purchase will be handled by professional buyers." In the immediate future, business-to-business will be a much larger market than it is today, approximately 14 times as large as the business-to- consumer market. E-business will also reach its potential. However, this will only occur through a complete integration with a company's application system. E-business will become an integral part of the entire refinement process in the physical flow of merchandise and services, as well as for all the business processes in a company. Intentia has tomorrow's solutions today Market changes will cause far-reaching consequences for Intentia and other application system suppliers. Björn Algkvist comments, "Intentia has an in-depth understanding of a company's logistics, we are thoroughly familiar with all types of business processes, our customer databases are excellent and we are rapidly increasing our range of integrated solutions for the future." Algkvist believes that as more and more applications are developed, investment in business process development will dramatically increase, and each project will be bigger and more valuable. New requirements will develop continuously as technology moves forward and demand increases. The beginning of a new phase can be glimpsed just over the horizon. In the near future, Intentia's integrated solutions will change the way companies do business with each other, enabling them to genuinely collaborate in a way that has not been possible previously. When this occurs, e-business will begin to make way for c-business or collaboration-business and enterprise applications will function as the heart of the collaboration economy. Great starting point In the past few years, Intentia has concentrated on positioning itself to satisfy the demands caused by changes that are already appearing. Intentia has developed its product from a traditional ERP system to a complete solution that can manage all the demands of the new economy. We can assure our customers' success in the new economy by offering them leading applications for Customer Relationship Management (CRM), Supply Chain Planning (SCP) and Business Performance Measurement (BPM). Intentia as an organization has developed to concentrate on delivering solutions to meet the needs of the business-to-business and business-to- consumer markets, in areas such as Web shops, MRO procurement, strategic procurement, independent industry trading collaboration, corporate portals and employee self-service. Today Intentia finds itself in an enviable position. The Group has performed more than 150 different e-business projects since our e-business strategy was first developed. We currently receive two new contracts each week. Intentia's new base technology for our e-business platform substantially increases the market potential of our e-business package. This package is complemented by an increasingly complete selection of e- business solutions. Our products are supported by a global organization of 3,500 highly skilled consultants in forty countries who have many years of experience of development and implementation. Perhaps more importantly, our consultants enjoy the confidence of 3,000 customers. 1999 was a tough year for the entire ERP industry and Intentia was not the only company to lose license revenue. However, after the first quarter of 2000, we can confidently say that we have increased our competitive th th ability and have moved from 8 place to 5 place among enterprise application suppliers. Björn Algkvist comments on the situation, "We have the ability to develop Intentia into one of the leading actors in the extremely demanding business environment which is beginning to take shape." Intentia's first quarterly report shows a healthy growth in license sales, which increased by 30 percent compared to the same period the previous year. Intentia also experienced a 19 percent increase in sales. Due to year 2000 issues and other factors, relatively few companies invested in new enterprise applications toward the end of 1999. Naturally, this negative growth was reflected in the decrease in consultant revenues for Intentia as well as most other enterprise application suppliers. Intentia's operating earnings were SEK -89 million. Björn Algkivst comments, "The dramatic shift in the first quarter demonstrates that Intentia is a strong competitor in a market that is on its way to returning toward long-term, steady growth." Outlook In the long run, Intentia should be able to combine growth with a satisfying level of profitability and the highest level of customer satisfaction in the industry. In 2000, we will be able to fully reap the benefits of Intentia's 1999 expansion efforts. We aim to expand primarily through increased effectivity in the current sales and consultant organization. This will have a significantly positive impact on operating earnings. The following decisions were made at the annual general meeting: To re-elect the present board, consisting of Björn Algkvist, Jan Carlzon, Olof Ljunggren, Peter Lorange, Morgan Olsson, Kjell Spångberg and Ulf Tangen. To establish a stock option program for key personnel. The program would consist of 1,750,000 warrants. To extend previously rendered authorization regarding new share issues of a maximum of 1,000,000 shares, to be used in the case of acquisition of the company or assets and liabilities. To extend previously rendered authorization regarding the release of 200,000 warrants which are intended for option holders, primarily in the USA. For further information, please contact: Björn Algkvist, President and CEO Telephone+46-8-5552 5605 Fax +46-8-5552 5999 Håkan Gyrulf, Vice President and CFO Telephone+46-8-5552 5825 Fax +46-8-5552 5999 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/27/20000427BIT01820/bit0001.doc http://www.bit.se/bitonline/2000/04/27/20000427BIT01820/bit0002.pdf