New start for Framfab

New start for Framfab A new Board of Directors for Framfab will be proposed to the Annual General Meeting held today, May 4, 2001. All of the members of the previous Board have offered up their positions. The new Board, if elected, will implement a far-reaching program aimed at re-starting the company so that it regains profitability. The main points of the program are as follows: · Operations will focus on six countries. The local businesses will have considerable independence and delegated responsibility for results. Corporate staff will be reduced significantly. Johan Wall will remain as CEO of the company. · All non-core activities, such as Framfab Labs, UMTS licenses, ownership of Bredbandsbolaget, etc. will either be sold, closed down or financed. · Framfab will lay off a further 650 employees, whereof about half in Sweden, either via the sale of companies and offices or through direct redundancies. On October 1 Framfab will in all have 900 employees. · Framfab will gain a new, more operational Board, with experience from international business, IT- and Internet consultancy. Management of local businesses will be strengthened via the introduction, among other measures, of management committees which will include members from our partners. · In the next phase, once the corporation is profitable, Framfab will focus on growth in order to build Europe's leading Internet consultancy. · A strategic review will be conducted to clarify the longterm positioning for Framfab. · The new Board will make a proposal regarding a new share issue that will give about 300 MSEK. Sven Skarendahl has had the mission by the principal owners to propose member to the new Board of Directors. The following persons are suggested: Kaj Green, President of EDS in the Nordic region Robert Gogel, vice chairman antfactory Johan Wall, CEO Framfab Sven Skarendahl, member of the Board, Framfab "The proposed Board includes representatives from Framfab's closest partners. These are people with very strong IT competence and extensive experience of top class international businesses," says Sven Skarendahl. "We have noted with appreciation that the previous Board has taken a decision about the depreciating assets in order to create a clean balance sheet at the start of this new phase", says Sven Skarendahl. The new Board will swiftly implement its program, completing it by the end of Q3. When the program is completed Framfab will have activities in the following countries: Denmark, France, Germany, the Netherlands, Sweden and the UK. Italy will be decided later on. "Having to say goodbye to such enormously competent staff is something that we do with the greatest reluctance and with genuine regret. However, there is no alternative for Framfab. The company must make extreme cost savings in order to pave the way for profitability," says Sven Skarendahl. More details of the proposed Board's program will be presented at the press conference to be held at 1 p.m. on Friday 4 May at Industrihuset, Storgatan 19, Stockholm. Framfab's Q1 results will be announced at the same meeting. For further information, please contact: Sven Skarendahl, proposed new Chairman of Framfab Tel: + 46 8 545 258 00 Photos and CVs of the proposed members of the Board are available on www.framfab.com (press lounge) Framfab is a global internet consultancy, delivering digital services based on internet technology. Framfab has offices in Austria, Bulgaria, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Switzerland, Sweden, the UK and the US. Many large global groups work with Framfab, including 3M, AstraZeneca, AXA, Bosch, Carlsberg, Electrolux, France Telecom, I K E A, the International Red Cross, le Groupe Pernod Ricard, Kellogg's, Packard-Bell, Nike Europe, SAAB, SAS, Viag Interkom, Volvo Car Corporation and AB Volvo. Framfab is listed on the OM Stockholm Stock Exchange's Attract 40 list (ticker FTID). For more information, please visit www.framfab.com ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/04/20010504BIT01230/bit0001.doc http://www.bit.se/bitonline/2001/05/04/20010504BIT01230/bit0001.pdf