Song Networks sells Cegal AS of Norway

Song Networks sells Cegal AS of Norway Song Networks Holding AB (NASDAQ: SONW, Stockholm Stock Exchange: SONW) today sells Cegal AS of Norway. The buyer, Intellinet ASA, is a Scandinavian full service ASP/ISP company. The purchase price will be approximately SEK 6.5 million, which will be paid in Intellinet shares. The aim of selling Cegal is to achieve more dynamic and expansive growth in Cegal's ASP activities. The buyer, Intellinet ASA, can give Cegal greater market volumes to obtain greater profitability from public activities. As part of the agreement, Song Networks and Intellinet will join forces and sell ASP services to Song Networks' existing customers. Intellinet will in turn use Song Networks as the lead supplier of data services to its customers. Cegal AS works with IT structure management and applications and today has approximately 30 employees. Further information, please contact: Song Networks AS Song Networks Holding AB Pål Vegard, Managing Director Petra Asteson, IR Assistant Phone: +47 2150 2101 Phone: +46 8 5631 0344 Mobile: +47 4000 0101 Mobile: +46 701 810 344 E-mail: pal.vegard@songnetworks.no E-mail: petra.asteson@songnetworks.se About Song Networks (former Tele1 Europe) (NASDAQ: SONW, OM Stockholm Stock Exchange: SONW) Song Networks is a rapidly expanding data, internet and telecommunications operator with activities in Sweden, Denmark, Finland and Norway. The company provides broadband solutions for data, internet and voice, to large and mid-range businesses in the Nordic region. Song Networks is currently the only pan Nordic data, internet and telecommunications operator investing in local access networks with broadband capacity. The company is constructing networks in the 80 largest cities in the Nordic region. The access networks, which are linked by a long-distance network, will be one of Europe's fastest data and internet super-highways with an initial capacity for customers of up to one gigabit. The company was founded in 1995 and has approximately 1,300 employees. The head office is in Stockholm and there are an additional 24 offices located in the Nordic region. For further information, please visit our website at www.songnetworks.net Certain statements contained in this press release contain "forward- looking statements" within the meaning of the U.S. federal securities law. Such statements are based on the current expectations of the management of Song Networks Holding AB only, and performance is subject to risks, uncertainties and other factors that could cause actual results to differ materially from these statements. Such risks include, but are not limited to, adverse regulatory, technological or competitive developments; decline in demand for the company's services or products; inability to timely develop, introduce and market new technologies, products and services; pricing pressures resulting from competition; unforeseen construction delays; and the inability to successfully manage systems failures or shutdowns and service interruptions or reduced services to customers. For a more detailed discussion of such risks and uncertainties affecting the company, please refer to Song Networks Holding AB's reports that are filed from time to time with the U.S. Securities and Exchange Commission, including the company's annual report on Form 20-F and reports on Form 6-K. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/23/20010823BIT00630/bit0002.doc http://www.waymaker.net/bitonline/2001/08/23/20010823BIT00630/bit0002.pdf