NeoNet’s Board of Directors Proposes Repurchase of Shares and Warrants

The Board of Directors of NeoNet AB (publ) has resolved to propose the Annual General Meeting to authorize the Board to repurchase NeoNet AB (publ) shares and warrants to a maximum value of SEK 22 m.

The purpose with the authorization is to secure that over time the company has a suitable capital structure and thereby to contribute to increased shareholder value. The background to the proposal is among other aspects the probable future consequences in respect to the company’s outstanding warrants and debentures. The warrants expire in March 2007. In case the warrants are fully used for subscription of new shares there will be a new issue with a capital inflow of approximately SEK 90 m. The debenture loan matures in April 2007, which will then lead to a cash outflow of approximately SEK 52 m inclusive of interest. The net impact will be an inflow of approximately SEK 38 m. Repurchased shares and warrants will be voided. Information about the parent company’s equity situation is provided in the Annual Report for 2005 that will be available prior to the Annual General Meeting. Notice to attend the Annual General Meeting will be posted latest 6th April 2006. For further information, please contact: Simon Nathanson CEO of NeoNet +46 8 454 15 51 simon.nathanson@neonet.biz