Communiqué from EGM of Micronic Laser Systems

Communiqué from EGM of Micronic Laser Systems Address by Bert Jeppsson, president Bert Jeppsson opened with a brief description of Micronic's financial result and market situation as of September 30th 1999. The financial turbulence in Asia continued to have an adverse effect on the company's order intake and invoicing during the first three quarters of 1999. However, a recovery has been noted in South Korea. The order intake recovered during the period, and increased by 87 per cent. The period also saw the first delivery of an Omega 6000, a new generation of laser writers for the semiconductor industry. The order intake during the period rose to MSEK 172 (92). Orders were received for six (four) laser writers and for upgrades of several previously delivered systems. Net turnover amounted to MSEK 174 (179), a decrease of 3 per cent. The parent company's net turnover was MSEK 163 (177). During the period, income from service activities amounted to MSEK 25 (12). At the end of the period, the Group had orders in hand for MSEK 118 (144). During the period, substantial amounts were invested in marketing, and research and development. Costs for the period rose to MSEK 138, an increase of 47 per cent compared to the previous year. The operating result after financial items was a loss of MSEK 8 (profit 28). The corresponding figure for the parent company was a loss of MSEK 8 (profit 27). The profit margin was negative -5% (+16). It is planned to make an initial public offering on the Stockholm Stock Exchange within the coming twelve months. Outlook It is the opinion of the Board of Directors of Micronic that order intake during 1999 will exceed the last year's order intake. However, the level of invoicing is expected to be below that of 1998, which implies that Micronic will report an operating loss for 1999. Decision of the EGM The EGM resolved in favour of the Board's proposal a)to amend § 4 in the company articles of association to read as follows: "The share capital shall amount to a minimum of SEK 7,500,000 and to a maximum of SEK 30,000,000." b)to authorise the Board to take decisions during the period until the next AGM to issue up to 5,300,000 new shares in the Company, with or without preferential rights for the Company's existing shareholders, at a subscription price of no less than SEK 60 per share. The reason for the deviation from the shareholders' preferential rights is the planned listing of the Company's shares on the stock market, a process that will include an issue of new shares. c)to issue subordinated note of SEK 10,000 with detachable warrants with options to subscribe for 350,000 new shares, on the following conditions: - the note, with the preferential rights of existing shareholders being waived, shall be issued by the company's wholly-owned subsidiary, Micronic Treasury AB. - it shall be possible to subscribe for shares on the basis of the option, during the period ending on December 31st 2002 at a price of SEK 90 per share. The reason for the deviation from the shareholders' preferential rights is that the Board wishes to create an options programme for employees of the Company and its subsidiaries. d)to issue subordinated note of SEK 10,000 with detachable warrants with options to subscribe for 736,050 new shares on the following conditions: e) - the note, with the preferential rights of existing shareholders being waived, shall be issued by the company's wholly-owned subsidiary, Micronic Treasury AB. - it shall be possible to subscribe for shares on the basis of the option, during the period ending on December 31st 2003 at a price of SEK 60 per share. The reason for the deviation from the shareholders' preferential rights is that the Board wishes to exercise the options as one stage in an arrangement with a partner of strategic importance to the company. Micronic Laser Systems in brief Micronic Laser Systems is a Swedish high-tech company engaged in the development, manufacturing and marketing of a series of extremely accurate laser writers for the production of photomasks. The technology involved is known as microlithography. Micronic's systems are used by the world's leading electronics companies in the manufacturing of television and computer displays, semiconductor circuits and semiconductor packaging components. Micronic is a fast growing company with 171 employees. Micronic is situated in Täby, north of Stockholm and has at present three service offices in: Japan, Taiwan and the US. Contact: Bert Jeppsson, President & CEO, phone: +46 8 638 52 66 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/10/28/20000707BIT00650/bit0001.doc http://www.bit.se/bitonline/1999/10/28/20000707BIT00650/bit0002.pdf