SEK 429 million directed issue of shares targeting US investors

SEK 429 million directed issue of shares targeting US investors MALMÖ, Sweden, January 25, 2000 - The Board of Telelogic has today decided on a directed new issue of 650,000 shares, by waiving the pre-emptive rights of existing shareholders. The decision was taken based on a mandate given by an Extraordinary General Meeting of Telelogic shareholders, on January 20, 2000. The purpose of the issue is to raise capital to fund continued expansion and to enlarge the international institutional shareholder base. Accord- ingly, 85 per cent of the newly issued shares has been placed with 14 large, US institutions. "Now we have laid the foundation for future acquisitions and a continued high organic growth", says Anders Lidbeck, CEO of Telelogic. "The inter- est among international investors has been fantastic and several well- renowned US institutional investors will be shareholders in Telelogic. This is very positive and increases the company's credibility, especially in the important US market. Several of the new owners have an in-depth un- derstanding of our business and are expected to contribute positively to Telelogic's development. By increasing our exposure in the US we hope to prepare the ground for a potential future stock market listing in the US." The issue price has been set at SEK 660 per share, which implies that Telelogic will raise SEK 429 million, before issue costs. The issue price represents a discount of approx. 4,35 percent in relation to the closing price on the Stockholm Stock Exchange on January 24, 2000. Telelogic's institutional ownership is strengthened by the new issue and currently represents some 22 percent of the share capital. The total num- ber of shares in Telelogic increases from 8,120,000 shares to 8,770,000. The number of shares after exercise of all outstanding warrants is 10,932,000 after the new issue. The new issue increases the number of shares by 7 percent before and 6 percent after full dilution. In conjunction with the new issue, CS Communication et Systemes has de- creased its holding in Telelogic by 350,000 shares. To meet the new investors' preference for prompt delivery, Telelogic's ma- jor owner, Förvaltnings AB Ratos, has agreed with Enskilda Securities to lend 1,000,000 shares until the new issue of shares has been registered with the Swedish Companies House. Ratos currently holds 1,612,000 shares in Telelogic, representing 20 percent of the capital and votes before the new issue and dilution. About Telelogic AB Telelogic, which today has subsidiaries in ten countries, and is repre- sented by distributors in 20 additional countries, is the market leader in development tools for real-time applications. The Company's products have been used for several years in a demanding industrial setting, where cus- tomer use is well documented. Offering high quality graphical development tools and related services makes software development faster and more re- liable. The Company has a global customer base which includes the leading suppli- ers, such as Alcatel, Cisco, Ericsson, Fujitsu, Hewlett-Packard, Lucent, Motorola, NEC, Nokia, Nortel Networks and Siemens, as well as a number of universities and institutions all over the world. Software market trends point toward visual program methods, a field where Telelogic leads in the production of the next generation of development tools. After the recently implemented stock issue, the Company is well equipped to quickly deliver comprehensive solutions to the complex chal- lenges facing the communications industry. For more information about Telelogic, please visit www.telelogic.com. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/01/25/20000125BIT00110/bit0001.doc http://www.bit.se/bitonline/2000/01/25/20000125BIT00110/bit0002.pdf