LGP announces prospectus and comments on statement by Allgon€s Board of Directors

Not for release in or into the United States, Canada, Australia or Japan. No offer is being made hereby to persons whose participation in the offer requires that further prospectus, registration or other measures are taken in addition to those required under Swedish law. LGP announces prospectus and comments on statement by Allgon's Board of Directors LGP would like to reproduce the future outlook presented in the prospectus in connection with the Offer to the shareholders in and holders of warrants issued by Allgon. Furthermore, LGP would like to comment on the statement by Allgon's Board of Directors on September 6, 2000. The future outlook for LGP is positive. Order intake continued to be very strong during July and August. Sales for the fiscal year 2000 is expected to exceed SEK 1,250 million. The operating margin is expected to remain at the same level as for the first half of 2000, in spite of personnel and other costs associated with the expansion of the Tullinge plant. The new plant, which is built next to the present plant, will more than triple LGP's capacity for final assembly, trimming and testing of proprietary products. Start of production is estimated to April 2001. With the new plant and the expansion plans for the rest of the group, e.g. a significant addition of the plant in Falköping, LGP is well positioned for the coming expansion. As a response to the statement by the Board of Directors of Allgon, LGP refers to its growth, profitability and focus on research and development. Growth LGP experiences growth in very attractive product areas. The market penetration for LGP's main product TMA, which contributes to a significantly more cost efficient radio coverage, today amounts to approximately 10 - 15 per cent, while more than 30 - 40 per cent of the new systems are fitted with TMA. The growth rate for business area Telecom was 89 per cent during the first six months of 2000, and the corresponding growth for Allgon Systems was 52 per cent. Profitability With a focused product portfolio, LGP has been able to show a good and sustainable profitability during a period of strong growth. During the period from 1996 to 1999 the average operating margin has amounted to 17 per cent, while the corresponding operating margin for Allgon was 7 per cent. LGP exclusively sells products and sub-systems for mobile infrastructure within the business area Telecom, which represented 71 per cent of LGP's total sales during the first six months of 2000. Allgon's sales in the corresponding segments, Systems and Microwave, amounted to 62 per cent of the total turnover for the first six months of 2000. As handset antennas are subject to price pressure and the product life cycle tends to become even shorter, profitability within Allgon Mobile Communications is poor. Focus on Research and Development in Sweden Allgon has invested substantial resources in product development during later years. These investments have not yet resulted in an enhanced profitability. It is the expectation of LGP that by focusing and specialising the new group's research and development, the profitability of the operations will improve. Through a business combination with LGP, research and development, production and management will remain in Sweden. Bid premium, etc. For the shareholders in Allgon, the Offer implies a bid premium of 48 per cent. Furthermore, the shareholders of Allgon may, upon request, obtain deferment with the capital gains tax arising in connection with the sale of shares. The shares received in LGP are also not liable for wealth taxation. An offer document in relation to LGP's offer to the shareholders in and holders of warrants issued by Allgon is available at LGP, Kolonnvägen 22, Solna and at Enskilda Securities, Nybrokajen 5, Stockholm. The acceptance period for the offer will run from September 13 through October 4, 2000. For every share of series A or series B in Allgon, 0.56 newly issued shares in LGP are offered. For every warrant 2000/2003 issued by Allgon, SEK 7.50 in cash is offered. For further information please contact: Mikael Gottschlich, CEO, LGP Telecom Holding AB, tel. +46-8-624 43 00 or +46- 70-590 34 81 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/09/12/20000912BIT00240/bit0001.doc http://www.bit.se/bitonline/2000/09/12/20000912BIT00240/bit0002.pdf