Telelogic acquires competence within 3G and mobile Internet

Telogic acquires competence within 3G and mobile Internet Certeam - experts in telecom and project management MALMÖ, May 30, 2000 - - Telelogic AB (Stockholm Stock Exchange:TLOG), the leading supplier of design, development and testing tools for real-time communications applications, today announced the acquisition of the Swedish consulting firm Certeam with 57 employees. The acquisition is part of Telelogic's professional service strategy and is strengthening the company's project management resources within areas like 3G and mobile Internet. Anders Lidbeck about the acquisition: "Certeam is a unique company when it comes to technical competence, customer base, experience and growth. Certeam has a broad experience in project management for telecom development - that is exactly what our customers are asking for.", says Anders Lidbeck, President and CEO for Telelogic. "We are now increasing our 3G delivery capacity, obtaining UML- and modeling experts and, at the same time, are involved in interesting projects at customers like Ericsson and Telia. Certeam - customers and assignments Certeam AB was founded 1995 and has been owned by its employees. Certeam's largest customer is Ericsson, where the Company is involved in the development of the 3G radio base station at Ericsson Radio Systems. In the area of mobile Internet, Certeam has, among other projects, project management responsibility for the Ericsson/SMART/Amadeus new system for mobile travel management. Certeams professional service offering comprises project management, architecture, process- & quality reengineering and test. Certeam about the future in Telelogic "Certeam's strategy is very similar to what Telelogic defines as "Development Management", says Thomas Edblom, working chairman of the board in Certeam. "In Telelogic we will be able to grow as consultants. We can offer our staff attractive assignments in a dynamic organization and we are expecting to increase the recruitment pace immediately. Effects on the turnover and profit Certeam's turnover for 1999 totaled 40 MSEK (USD 4.4 Million) and the turnover for 2000 is expected to exceed 65 MSEK (USD 7 Million), which pro-forma is 20% of Telelogic's 1999 revenue. Certeam will add approximately SEK 45 million (USD 5 Million) to Telelogic year 2000. After goodwill depreciation the Certeam deal will mean a slight loss for year 2000. The acquisition is expected to contribute positively to Telelogic's result during year 2001. At the time of the acquisition, Certeam had 57 employees. Financial structure Payment is done with shares equivalent to SEK 90 million (USD 10 million), corresponding to approximately 1.5% of the Telelogic shares fully diluted. An additional payment may be made based on Certeam's future performance. About Telelogic Telelogic is established in twelve countries under its own name, and a further 20 countries through distributors. It leads the market in development environments for technical software, especially in real time applications. By offering high quality graphical development tools and related services, Telelogic makes the development of software more rapid, less labor intensive, and more reliable. The company has a global client base, including the leading suppliers 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. The software market is moving towards more visual programming methods, and Telelogic leads in the production of the next generation of development tools, in this area. A directed stock issue was implemented in January this year, and has provided the company with capital for continued expansion. Telelogic is now well prepared to deliver rapid and complete solutions for the complex challenges faced by the communications industry. For more information on Telelogic, visit www.telelogic.com. For more information on Certeam, visit www.certeam.se. Contacts: Anders Lidbeck Catharina Sundelin President & CEO Information & Investor Relations Manager Telelogic AB Telelogic AB Phone: +46 40-17 47 00 Phone: +46 705-17 47 30 Fax: +46 40-17 47 47 Fax: +46 40-17 47 47 E-mail: anders.lidbeck@telelogic.com E-mail: catharina.sundelin@telelogic.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/30/20000530BIT00210/bit0001.doc http://www.bit.se/bitonline/2000/05/30/20000530BIT00210/bit0002.pdf