Acquisition makes Sifo Group the world's largest media & market monit. company

Acquisition makes Sifo Group the world's largest media and market monitoring company Sifo Group acquires family-owned Romeike Group in the UK The acquisition of Romeike Group makes Sifo Group, through its Observer Media Intelligence division ("Observer"), the world's largest media and market monitoring company. Romeike Group is at least three times larger than its nearest competitor in the UK market. It has revenue of approximately SEK 350 million and around 500 employees. In recent years Romeike Group has generated organic growth of around 10 percent annually and an operating margin exceeding 30 percent. Acquisition an important part of Sifo Group's growth strategy The acquisition of Romeike Group is a further step in Sifo Group's strategy of growth and internationalization. Observer becomes several times larger than its nearest competitor in Europe. Following the acquisition, slightly over 70 percent of Observer's and more than half the Group's revenue will come from markets other than Sweden. Increased growth through value-added Observer plans to increase growth at Romeike Group by introducing more modern technology, intensifying marketing efforts and offering customers a wider range of value-added services. Profit per share higher as early as from 2000 Sifo Group acquires all the shares in Romeike Group for GBP 110 million (approximately SEK 1,515 million) in addition to a possible supplemental purchase price. The acquisition is expected to positively impact Sifo Group's profit per share excluding goodwill amortization as early as 2000. Profit per share after goodwill amortization is expected to rise beginning in 2002. The acquisition is also expected to have an immediate positive effect on cash flow. Rights issue for Sifo Group shareholders The acquisition will be financed through * a rights issue to existing Sifo Group shareholders; * a directed share issue to shareholders of Romeike Group; and * an increase in interest-bearing liabilities. The rights issue is expected to take place in January, 2000. "Europe's most important market" "The acquisition establishes us as the market leader in Europe's most important market," says Robert Lundberg, President and CEO of Sifo Group. "Sifo Group adds a highly profitable company that fits in well with Observer's business. By utilizing Observer's value-added services, we expect to raise Romeike's growth rate and achieve considerable economies of scale." ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/06/19991206BIT00340/bit0001.doc http://www.bit.se/bitonline/1999/12/06/19991206BIT00340/bit0002.pdf